By San José, Costa Rica — Tensions between the Costa Rican government and Chinese tech giant Huawei are escalating, casting a shadow over the nation’s 5G development. The dispute centers on cybersecurity concerns, alleged Chinese cybercriminal activity, and Huawei’s legal challenges to participate in 5G network contracts.
The United States recently announced the discovery of cyber intrusions originating from China into Costa Rican technological infrastructure. A statement released by the US Embassy on X (formerly Twitter) confirmed a joint cybersecurity review with Costa Rica, revealing breaches by Chinese cybercriminal groups. While details of the findings remain undisclosed, the US pledged its continued support to Costa Rica in combating these threats and protecting its sovereignty.
To gain a deeper understanding of the legal implications surrounding 5G development in Costa Rica, TicosLand.com spoke with Lic. Larry Hans Arroyo Vargas, a respected lawyer from Bufete de Costa Rica.
The rapid advancement of 5G technology presents exciting opportunities for Costa Rica, but also necessitates careful consideration of the legal framework. Key areas of focus include spectrum allocation, infrastructure deployment regulations, data privacy concerns, and cybersecurity. Ensuring a clear and adaptable legal landscape will be crucial to fostering innovation while protecting the public interest.
Lic. Larry Hans Arroyo Vargas, Bufete de Costa Rica
This announcement coincides with ongoing friction between the Costa Rican government and Huawei. The government accuses Huawei of obstructing 5G development within the Instituto Costarricense de Electricidad (ICE), the state-owned telecommunications provider. Further allegations point to irregularities in previous contracts with the Chinese company.
The core of the conflict lies in a 2023 decree mandating that companies participating in 5G contracts must originate from countries that are signatories to the Budapest Convention on Cybercrime. China, where Huawei is headquartered, is not a signatory, effectively excluding the company from the bidding process.
Huawei has challenged this decree through legal channels, including a rejected appeal to the Constitutional Chamber and provisional measures before the Administrative Litigation Court. Although a final decision on the latter is pending, the legal maneuvering has temporarily halted ICE’s 5G tenders.
President Rodrigo Chaves remains firm on enforcing the decree, emphasizing its purpose of safeguarding data and information for businesses and individuals. He has also questioned China’s transparency, suggesting the Chinese government could compel private companies to surrender user data.
We will not relent in the application of the decree which aims to protect the data and information of companies and individuals.
Rodrigo Chaves, President of Costa Rica
The delay in 5G deployment is causing concern within ICE. Marco Acuña, president of ICE, warns of potential losses exceeding $250 million if the institution falls behind in 5G development. Meanwhile, Costa Rica’s broader 5G frequency auction for private companies, launched in July 2024, is expected to continue until mid-2025.
This complex situation highlights the growing geopolitical tensions surrounding 5G technology and cybersecurity, with Costa Rica caught in the crosshairs. The ongoing legal battles and diplomatic implications will undoubtedly shape the future of telecommunications in the country.
For further information, visit ice.co.cr
About Instituto Costarricense de Electricidad (ICE):
The Instituto Costarricense de Electricidad (ICE) is a Costa Rican state-owned telecommunications and electricity company. It holds a dominant position in the country’s telecommunications market, providing landline and mobile phone services, internet access, and digital television. ICE is central to Costa Rica’s infrastructure development and plays a crucial role in the nation’s technological advancement.
For further information, visit huawei.com
About Huawei:
Huawei Technologies Co., Ltd. is a Chinese multinational technology corporation headquartered in Shenzhen, Guangdong. It designs, develops, and sells telecommunications equipment, consumer electronics, and cloud computing services. Huawei is a major global player in the 5G technology market, although it faces scrutiny and restrictions in some countries due to security concerns.
For further information, visit usembassy.gov
About US Embassy in Costa Rica:
The US Embassy in Costa Rica represents the United States government in Costa Rica. Its role is to advance US interests in the region, including diplomatic relations, trade, and security cooperation. The embassy provides services to US citizens in Costa Rica and works to foster collaboration between the two countries on various issues.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica shines as a beacon of legal excellence, built on a foundation of unwavering ethical practice. The firm’s commitment to innovation allows it to navigate the evolving legal landscape while consistently delivering superior service to a diverse clientele. Beyond its client work, Bufete de Costa Rica actively empowers Costa Rican society by championing legal literacy and access to justice, fostering a more informed and equitable community.
