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Telecommunications in Costa Rica: spectrum concessions, SUTEL authorisations, FONATEL and 5G security rules

Last verified: 2026-10-30 · Status: Stable

Costa Rica opened its telecom market in 2008. Using spectrum requires a concession from the Executive, usually by public tender, for up to 15 years and 25 in total; networks and services without spectrum need a SUTEL authorisation of up to ten years. Operators pay a FONATEL universal service contribution set at 1.5% of gross revenue for 2025, a regulatory canon and a spectrum canon. A 2023 decree treats 5G suppliers from countries outside the Budapest Convention as high risk.

USD figures use the Banco Central de Costa Rica reference selling rate of ₡454.82 per US dollar published for 29 October 2026 (indicator 318 on bccr.fi.cr), rounded to the cent.

Key facts

FONATEL contribution, fiscal year 20251.5 %SUTEL Acuerdo 012-069-2025, as of 2026-10-30 · in force
FONATEL legal band1.5 to 3 %Ley 8642 art. 39, as of 2026-10-30 · in force
Maximum spectrum concession term including extensions25 yearsLey 8642 art. 24, as of 2026-10-30 · in force
Initial SUTEL authorisation term10 yearsLey 8642 art. 24, as of 2026-10-30 · in force

The rule

1. A concession is required to use and exploit spectrum frequencies for telecom networks; for public networks it allows any service available to the public in a regional or national coverage area.Ley 8642, Ley General de Telecomunicaciones, art. 11, 2008-06-04 official text · verified 2026-10-30
2. Concessions are awarded by public tender and the contract is signed by the Executive and endorsed by the Contraloría General de la República.Ley 8642, Ley General de Telecomunicaciones, art. 12 and 18, 2008-06-04 official text · verified 2026-10-30
3. Concessions can be assigned only with prior Executive authorisation, if the assignee meets the same requirements, the assignor has operated at least two years and competition is not harmed.Ley 8642, Ley General de Telecomunicaciones, art. 20, 2008-06-04 official text · verified 2026-10-30
4. SUTEL authorisation is needed to operate public networks without spectrum, to resell services over third party networks, or to run private networks without spectrum; an extract is published and SUTEL decides within two months after a ten business day objection period.Ley 8642, Ley General de Telecomunicaciones, art. 23, 2008-06-04 official text · verified 2026-10-30
5. Spectrum concessions for public networks last up to 15 years, extendable up to 25 years in total, with extension requests at least 18 months before expiry; authorisations last up to ten years, extendable by five year periods up to three times, requested six months before expiry.Ley 8642, Ley General de Telecomunicaciones, art. 24, 2008-06-04 official text · verified 2026-10-30
6. Operators and providers of public services pay a parafiscal FONATEL contribution on gross revenue within a 1.5% to 3% band set by SUTEL by 30 November; returns are due two months and 15 days after year end and payment in four instalments on 15 March, June, September and December.Ley 8642, Ley General de Telecomunicaciones, art. 39, 2008-06-04 official text · verified 2026-10-30
7. SUTEL fixed the FONATEL contribution for fiscal period 2025, payable in 2026, at 1.5% of gross revenue.
Cost to do it: 1.5% of gross telecom revenue.
Example: ₡10,000,000,000 revenue: ₡150,000,000. / About US$21,986,720.02 revenue: US$329,800.80.SUTEL Council Acuerdo 012-069-2025, point 3, 2025-11-27 official text · verified 2026-10-30
8. Every operator pays an annual regulatory canon under ARESEP law art. 59, and spectrum holders pay an annual spectrum reservation canon whether or not they use the bands; late payment adds interest and a 4% monthly penalty.Ley 8642, Ley General de Telecomunicaciones, art. 62 to 64, 2008-06-04 official text · verified 2026-10-30
9. Very serious infringements are fined 0.5% to 1% of prior year gross revenue, serious ones 0.025% to 0.5%, minor ones 5 to 30 base salaries of a judicial assistant 1; particularly grave cases can reach 1% to 10% of annual sales or assets.Ley 8642, Ley General de Telecomunicaciones (as amended by Ley 9597), art. 68, 2018-08-13 official text · verified 2026-10-30
10. Operators of 5G and later networks must treat as high risk single vendor networks and suppliers that can be pressured by foreign governments or are based in countries not committed to the Budapest Convention on Cybercrime, and report such risks to SUTEL within 3 calendar days.DE 44196-MSP-MICITT, Reglamento sobre medidas de ciberseguridad aplicables a los servicios 5G, art. 10 and 11, 2023-08-25 official text · verified 2026-10-30
11. Making, importing, selling or using signal jammers is a crime punishable by one to six years in prison.Ley 10415, adding Código Penal art. 259 bis, art. 2, 2023-11-29 official text · verified 2026-10-30

Worked example

  • An internet provider without spectrum earns ₡10,000,000,000 (about US$21,986,720.02) in 2025. It needs a SUTEL authorisation, pays the regulatory canon, and pays FONATEL of 1.5%, ₡150,000,000 (about US$329,800.80), in four instalments in March, June, September and December 2026.

Step by step

  1. Decide whether the business needs spectrum (concession by tender) or only an authorisation from SUTEL.
  2. File the SUTEL authorisation request and publish the extract in La Gaceta and a national newspaper.
  3. Register for the FONATEL contribution and canons with the Dirección General de Tributación.
  4. For 5G, document vendor risk analysis under DE 44196.
  5. Request extensions 18 months (concessions) or six months (authorisations) before expiry.

Common traps

  • FONATEL and the spectrum canon are tax administered: late payment triggers 4% a month plus interest.
  • Spectrum canon is due even on unused bands.
  • Assigning a concession before two years of operation is not allowed.
  • Fines for grave cases can reach 10% of group sales.

Sources

Related pages

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