Snapshot: Costa Rica's telecoms market

Costa Rica's telecoms market generated revenues of 731bn colones (US$1.45bn) in 2022, flat on 2021 as growth of general productive activity slowed and prices were slashed amid competition.

The sector's income represents 1.9% of GDP, similar to 2021, according to a recently published report by regulator Sutel.

In 2022, 15 companies were authorized to provide telecoms services for a total of 163 operators. However, 24 fewer operators than the previous year were providing services.

Sutel expects increases in demand as a result of price reductions.

Prices for mobile services have been falling for four consecutive years, registering a reduction of 3.8% in 2022. Fixed and mobile services generated revenues of 468bn colones, compared to 447bn colones in 2021.

The fixed segment share was 43.2% and mobile's 55.9%.

Total investment was 155bn colones, or 0.4% of GDP, compared to 0.6% in 2021.

INTERNET ACCESS

Overall, 6.1mn fixed and mobile internet accesses were in service, 143,910 more than in 2021.

Mobiles accesses totaled 5mn, 61.9% of the mobile line base, as the number of lines grew 2.6%.

Kölbi, the mobile brand of state telco ICE, had a 45.4% market share, Liberty 33.7% and Claro 21%.

The number of fixed subscriptions grew 4.4% to a total of 1.1mn.

Fiber accesses grew 52.7% to 44,734 lines, while cable modem ones decreased 8.9% to 573,514 and copper networks contracted 37.2% to 82,280. Other wireless technologies represented the balance.

ICE operated 26.6% of fixed lines, Liberty 24.6%, Telecable 21.2% and Tigo 18.1%. Smaller operators account for the balance.

MOBILE 

Around 7.8mn mobile subscriptions were active, of which 4.8mn corresponded to prepaid and the rest to postpaid. Annual growth was 0.5% and service penetration 151%.

For the second consecutive year, Liberty was in the lead with a market share of 46.4%, followed by Kölbi (32.5%) and Claro (21.2%).

LANDLINE TELEPHONY AND PAY TV

Fixed telephony connections fell from 500,550 to 486,631.

Telephony subscriptions via copper cables fell by 7% while voice over IP lines increased 9%. The penetration rate reached 24% of homes.

The number of pay-TV subscriptions fell by  9,356 to 829,594, with 55% of accesses corresponding to cable TV, 23% satellite and 22% IP and multipoint television.

Pay TV is present in 48.2% of Costa Rican homes.