Environmental and Social Management Framework for the Costa Rica Telecommunications Sector Modernization Project



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3.6Future Regulatory Overview


This section provides an overview of the two proposed telecommunications bills that are currently under discussion in Congress: the General Telecommunications Law (File N° 16398), recently approved, designed to create the legal framework for an open market; and the Law for the strengthening and modernization of public entities of the telecommunications sector (File N° 16524), designed to prepare ICE for future competition. At the time of this report, the discussions on these two bills were not finalized and still subject to change.

3.6.1General Telecommunications Law (File N°16398)


The bill reiterates the public nature of the radio electric spectrum. ICE will no longer be the sole user of such spectrum and frequencies, which will become the domain of the Government. The Government will then assign the frequencies to several providers according to the criteria and proceedings established in the law.
This bill also regulates access to telecommunications nets, including POTS, mobile services, cable, video, and any other applicable services. It also creates the Telecommunications Superintendence (as part of ARESEP), which will act as the regulatory agency for the telecommunications sector.
The bill provides for a National Telecommunications Fund to be established; it will be funded by the concessionaires and service suppliers through a mandatory contribution, ranging from 2-4% of gross income. The fund will be used to secure universal telecommunications access.
It is expected that ICE will remain the main telecommunications operator after the market opens. MINAE will oversee the telecommunications sector under the new name of Ministry of Environment, Energy, and Telecommunications (MINAET).
Additional executive regulations are expected to be issued within nine months of the approval of the law; none of these explicitly refer to environmental provisions. At the time of this report, there were no proposed drafts of these regulations. There was insufficient information to determine whether environmental telecommunications provisions will be issued as part of these additional regulations.
Environmental issues are referenced in two sections of the bill:


  1. List of principles which will apply to this law:


Environmental sustainability: Harmonization of the use and exploitation of the needs and the telecommunication services with the constitutional guarantee of a healthy and environmentally balanced environment, thus making the operators and suppliers comply with all the applicable environmental legislation.
(ii) Conditions under which a concession of the radio electric spectrum will be granted: SETENA must carry out the necessary studies to determine the need and feasibility of the concession as well as environmental impact studies11.

3.6.2Law for the Strengthening and Modernization of Public Entities of the Telecommunications Sector (File N° 16524)


The bill grants ICE more flexibility in financing projects and in complying with procurement requirements. It also establishes that ICE’s Board of Director will be appointed on a yearly basis and will be in charge of establishing the requirements for public bids.

The bill creates the Telecommunications Sector Council, which would be in charge of the design and assessment of the National Telecommunications Plan. The Council would also give recommendations to the Executive Branch on the exploitation and use of the radio electric spectrum. A Technical Secretariat, part of the Council, would implement the duties assigned to the Council. The Council would be formed by the Minister of Environment and Energy, who would act as its president; the Minister of Science and Technology; the Minister of National Planning and Economic Policy; and two members appointed by the Cabinet every two years.


On environmental matters, section c) article 2 of the proposed law states:
Create the Telecommunications Sector and its condition of Rector within the frame of government sectors, as well as develop the competences and attributions to the Rector Minister of the sector, who shall prepare the National Telecommunications Plan, which shall respect the applicable environmental legislation, the environmental protection, the administration and sustainable use of the natural resources and promote the use of renewable energy sources.
Even though there are no specific or clear additional references to environmental matters, applicable and current environmental legislation will still be applicable.
The bill also includes possible changes to Law No. 7593 (which created ARESEP), which regulates the competencies and duties of the Superintendence of Telecommunications. These changes specify that public telecommunications nets may be installed on public properties, including protected areas, provided that the infrastructure complies with the applicable legislation for environmental protection and procedures for obtaining necessary environmental permits. The operators of the nets are required to cover the installation costs; reimburse for damages caused by construction and operation; and pay a lease in an amount to be determined by the Costa Rica Tax Administration authorities.


3.7Options for Modernizing the Existing Framework


Based on the review of the existing legal framework, the opening of the market perspective and the future investments to be made by the project, it is advisable that the government of Costa Rica issue regulations with the objective of creating a clear legal framework for managing environmental issues in the telecommunications sector.
This set of provisions should be issued as an executive decree and combine both technical issues on telecommunications and environmental assessment of telecommunication projects. It would complement the new legislation on telecommunications, currently under discussion (see Section 3.6). These provisions would require a joint effort from both the telecommunications and the environmental sectors.
Provisions for strengthening environmental management of telecommunications sector in Costa Rica should address (see Section 6 for guidelines for specific regulations):
Specific environmental impact requirements for the construction and installation of infrastructure, including a clear definition of the requirements associated with each phase of the project;

  • Adequate planning for the location of the infrastructure, including a site selection process with a “no go” option;

  • Provisions to manage telecommunications facilities’ visual impacts, including considering access for maintenance, appointing maintenance staff, provisions to camouflage the radio bases, especially in the most vulnerable environmental areas;

  • Regular environmental monitoring, including monitoring of electromagnetic fields emissions;

  • Disposal and recycle of telecommunications related wastes; and

  • Public participation.



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