The exclusion of Asian suppliers from 5G generates cost overruns

5G./ RR SS
5G./ RR SS
The economic cost data of the exclusion of Asian suppliers from 5G technology tenders implies an extra cost for Costa Rica.
The exclusion of Asian suppliers from 5G generates cost overruns

As we had previously calculated in the CINPE study, with the effort of four fellow economists and me, the economic cost data resulting from the exclusion of Asian providers in 5G technology tenders imply an over cost for Costa Rica. This additional cost will translate into higher prices for both business and end users of this technology. It is now evident that the findings revealed by CINPE, which were questioned by the President and the Minister of Science, Technology, and Telecommunications, are entirely accurate.

The data presented in the table below, showcasing the bid costs to ICE for its latest 5G tender, reveals that certain providers would charge up to three times the amount bid by Huawei, one of the potential exclusions if President Chaves Robles' decree is maintained.

Table 1: Price Proposals for 5G Services by Participating Providers. Summary of 5G Proposal – ICE

The hard data from the offers of participating companies align with what has been presented and asserted by the CINPE study. As the President has rightly said, numbers speak for themselves. Now, it is your turn to explain to the Costa Rican people how you justify a double cost increase in ICE's 5G purchases and the impact it will have on tariffs.

It would also be appropriate, just, and honourable, Mr. President, to publicly apologize to CINPE and the National University for your statements and those of the Minister of Science, Technology, and Telecommunications. Likewise, the academic and scientific level of the report prepared by the National University leaves no room for doubt.

Our study estimated that the financial over cost for ICE would be no less than 40 percent in terms of investments, and the economic cost could reach up to 1.3 percent of the Gross Domestic Product (GDP) within the framework of the investments over the next 5 years by cellular technology operators. The data from the tender reveals that the most economical non-Asian provider is 2.2 times more expensive, which will be reflected in the costs and expansion capabilities of the 5G network. Hard data, Mr. President, you now have the floor.

It is confirmed that the statements made by the President were not well-founded or correct, and what was said by the Minister of Science and Technology was clearly careless and imprudent, given the level of information available and the data provided to your office by CINPE researchers. It was clearly lacking in consistency and analysis.

Considering these facts, the country urgently needs to halt and correct the actions taken by the government, which clearly oppose the common good and profoundly affect the well-being, productivity, employment, and cost of access to such important 5G and superior digital technology for the country's technological development.

With the results seen in the opening of the ICE tender, the exorbitant costs of a reckless political decision that does not address cybersecurity issues but clearly puts a lock on the country's digital development are evident. It is time for you to correct this, Mr. President, and now that you have concrete data, assume the true responsibility for the common good of the country and repeal this decree in substance. @mundiario

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