Vertical: Telecommunications
Application: 5G Standalone network, AI-powered automation, network slicing, public safety, transport, industry, digital services
Ecosystem: Ericsson, Instituto Costarricense de Electricidad (ICE), Coasin-Nokia
Private Network: 5G Standalone, LTE RAN
| Costa Rica’s state-owned telecom operator has selected Ericsson as the main supplier for its nationwide 5G Standalone deployment, the largest public network infrastructure investment in the country’s recent telecommunications history. The $220 million contract marks the first implementation of Ericsson’s Intelligent Automation Platform in Latin America and will deliver advanced network slicing, AI-powered rApps, and integrated cybersecurity to support enterprise and public safety use cases. |
Instituto Costarricense de Electricidad (ICE), Costa Rica’s autonomous state-owned utilities and telecommunications company, has awarded Ericsson a $220 million contract to deploy the country’s first nationwide 5G Standalone network. Operating commercially under the brand Kölbi, ICE’s telecom division selected Ericsson as its primary radio access network (RAN) and Core vendor after a competitive tender process concluded on April 28, 2026. The agreement encompasses 5G RAN equipment, a comprehensive dual-mode 5G Core solution, and expansion of existing LTE RAN infrastructure to strengthen coverage and capacity across Costa Rica.
The deployment will integrate the Ericsson Intelligent Automation Platform (EIAP) with AI-powered rApps, representing the first Latin American implementation of this advanced automation suite. Network slicing capabilities, built-in cybersecurity, open and standardized interfaces, and advanced management systems are core to the architecture. Mass commercial 5G services are expected to launch within approximately 12 months once the base infrastructure implementation phase is complete, supporting use cases across public safety, transport, industry, and digital services sectors.
| Metric | Detail |
| Network type | 5G Standalone (SA) with dual-mode 5G Core, 4G/5G RAN |
| Key vendor(s) | Ericsson (main RAN and Core supplier), Coasin-Nokia (radio base station equipment) |
| Investment | $220 million total contract value |
| Timeline | Mass services expected live in ~12 months; contract awarded April 28, 2026 |
| Coverage | Nationwide deployment across Costa Rica |
ICE and the Costa Rican Telecommunications Market
Instituto Costarricense de Electricidad is Costa Rica’s largest state-owned enterprise, providing both electric power and telecommunications services. ICE’s telecom division, branded as Kölbi, competes in a market opened to private operators in 2008 following decades of state monopoly. The company faces competition from Liberty Costa Rica and Claro Costa Rica, both of which have already begun deploying 5G services in metropolitan areas. Liberty Costa Rica signed a six-year strategic contract with Ericsson in July 2025, claiming the first 5G Standalone deployment in Central America with over 1,400 sites covering the entire national territory and serving more than 3.7 million subscribers. Claro Costa Rica has similarly rolled out 5G coverage in the San José metropolitan area and other major cities after paying $16.2 million for spectrum rights.
This competitive landscape has intensified pressure on ICE to modernize its network infrastructure. The telecommunications market in Costa Rica generated $32.5 million from the Liberty and Claro spectrum auction, funds allocated to the Fondo Nacional de Telecomunicaciones (FONATEL) to support connectivity initiatives for low-income households. ICE’s $220 million investment, considerably larger than competitor spectrum costs, signals the company’s determination to maintain market leadership through superior network quality and coverage. President Marco Acuña emphasized the administration’s commitment, noting the simultaneous award of transport and mass 5G networks alongside a 23-fold increase in international connectivity through the TAM-1 submarine cable.
Deployment Scope and Technical Architecture
The Ericsson contract covers Items 1, 2, and 3 of ICE’s 5G infrastructure tender, encompassing end-to-end network elements from radio access to core infrastructure. Ericsson will supply 5G RAN products alongside a comprehensive dual-mode 5G Core solution, enabling the network to support both 4G and 5G devices and services. The architecture includes network slicing capabilities, allowing ICE to partition the physical network into multiple virtual networks optimized for different use cases, from ultra-reliable low-latency communications for public safety to enhanced mobile broadband for consumer services. This approach mirrors Ericsson’s deployment for the UK Ministry of Defence private 5G framework, which similarly emphasizes slicing for mission-critical applications.
The deployment incorporates the Ericsson Intelligent Automation Platform (EIAP), the first implementation of this suite in Latin America. EIAP uses AI-powered rApps (RAN applications) to enhance network automation, optimize performance, and reduce operational complexity. Built-in cybersecurity features are integrated throughout the architecture, addressing ICE’s stringent digital security requirements. Open and standardized interfaces align with Open RAN principles while maintaining compatibility with Ericsson’s proprietary performance optimizations. The expansion of LTE RAN infrastructure as part of the contract ensures continuity of service and capacity improvements for existing 4G customers while the 5G network scales. Coasin-Nokia was awarded a parallel contract to provide supplementary equipment and connectivity services for radio base stations, working in concert with Ericsson’s main deployment.
Strategic Drivers and Use Case Priorities
ICE’s decision to invest $220 million in 5G infrastructure reflects strategic imperatives beyond consumer mobile broadband. The deployment is designed to support specialized use cases across public safety, transport, industry, and digital services, sectors where network reliability, low latency, and dedicated capacity create significant economic and social value. Public safety applications, for instance, can leverage network slicing to guarantee first-responder communications even during network congestion, a capability demonstrated in tactical 5G deployments for NATO operations. Transport sector applications include vehicle-to-everything (V2X) communications for intelligent traffic management, while industrial use cases span automation, remote monitoring, and digital twin implementations similar to those explored in private 5G manufacturing deployments.
The government of President Rodrigo Chaves has positioned 5G deployment as a national competitiveness priority, with directives emphasizing the need for ICE to match or exceed service levels offered by private competitors. The TAM-1 submarine cable investment, which increased international connectivity capacity 23 times, provides the backhaul foundation necessary to support 5G traffic volumes and latency requirements. ICE’s approach contrasts with pure mobile network operator deployments by explicitly targeting enterprise and government verticals, potentially opening pathways to private network offerings or network-as-a-service models. The integration of AI-powered automation tools positions ICE to manage network complexity at scale while controlling operational costs, a critical factor given the competitive pricing pressure from Liberty and Claro.
Implementation Timeline and Operational Readiness
Following the April 28, 2026, contract award, Ericsson and ICE are targeting mass commercial services launch within approximately 12 months, subject to completion of the base infrastructure implementation phase. This timeline is ambitious compared to some carrier deployments but aligns with the rapid rollout schedules Ericsson has demonstrated in comparable markets. The phased approach begins with core network deployment and initial RAN site activation in high-density urban areas, expanding progressively to secondary cities and rural regions. LTE RAN expansion proceeds in parallel, ensuring continuity of service quality for existing subscribers while the 5G footprint scales.
Operational readiness activities include training ICE technical staff on EIAP management, integrating AI-powered rApps into network operations workflows, and validating network slicing configurations for priority use cases. The dual-mode 5G Core architecture enables ICE to manage 4G and 5G subscribers from a unified platform, simplifying operations and reducing total cost of ownership. Sean Cryan, Customer Unit Head for LATAM North & Caribbean at Ericsson, highlighted the alignment between Ericsson’s technology portfolio and ICE’s security and performance requirements, noting the combination of secure 5G SA architecture with Open RAN principles. The 12-month target positions ICE to close the gap with Liberty and Claro’s existing 5G services while leveraging superior automation and slicing capabilities to differentiate on enterprise and government segments.
| “We appreciate the confidence ICE has placed in us. We reiterate our strong commitment to Costa Rica, and our priority is to provide cutting-edge technology that meets the highest standards of quality, security and performance, enabling ICE and the country to fully realize the benefits of 5G and elevate their service portfolio for customers, citizens and institutions, while supporting the continued growth of connectivity in Costa Rica.” Sean Cryan, Customer Unit Head for LATAM North & Caribbean, Ericsson |
Regional Context and Competitive Positioning
The ICE-Ericsson deployment unfolds against a backdrop of accelerating 5G adoption across Latin America and the Caribbean. Liberty Costa Rica’s $16.2 million spectrum investment and six-year Ericsson partnership established a competitive benchmark, with over 1,400 sites and 3.7 million subscribers on a 5G SA network. Claro Costa Rica’s parallel deployment, including commitments to install over 3,100 base stations to improve coverage in underserved areas, has already delivered 5G services in major cities. Within the broader Grupo ICE, subsidiary RACSA partnered with Nokia to deploy the first 5G standalone network in Costa Rica, announced October 10, 2024, with an initial 30 sites in key cities expanding to 170 sites and ultimately 500 sites in future phases. That RACSA-Nokia deployment brought high-speed, low-latency connectivity to major urban areas including San Jose, Cartago, and Limon, as well as rural regions.
ICE’s $220 million contract value significantly exceeds the capital deployed by private competitors in Costa Rica, reflecting both the breadth of the nationwide rollout and the inclusion of advanced automation and slicing capabilities not uniformly present in competitor networks. The first Latin American implementation of EIAP positions ICE as a regional technology leader, potentially creating opportunities for knowledge transfer and consulting services to other carriers in Central America. The integration of LTE RAN expansion alongside 5G deployment addresses a broader infrastructure modernization mandate, ensuring service quality improvements across the entire subscriber base rather than creating a bifurcated two-tier network. This holistic approach, combined with the submarine cable investment, positions ICE to compete on both coverage and capacity against well-funded private operators.
Implications for Enterprise and Government Sectors
While framed as a nationwide public 5G deployment, the ICE-Ericsson contract has significant implications for private network and network-as-a-service models in Costa Rica. The inclusion of network slicing as a core capability enables ICE to offer dedicated virtual networks to enterprise and government customers, functionally equivalent to private LTE or 5G deployments but leveraging shared infrastructure. Public safety agencies can receive guaranteed capacity and priority access, similar to mission-critical utility networks deployed by Tampa Electric. Industrial customers in manufacturing, logistics, and agriculture can access low-latency slices optimized for IoT devices and automation equipment, avoiding the capital expense and operational complexity of wholly owned private networks.
Transport sector applications, including intelligent traffic management and connected vehicle infrastructure, benefit from the combination of nationwide coverage and dedicated slicing. The AI-powered rApps within EIAP enable dynamic resource allocation, ensuring that time-critical applications receive necessary bandwidth and latency performance even during peak consumer usage periods. ICE’s state ownership and established relationships with government agencies position the company to bundle 5G connectivity with digital transformation initiatives across public administration, healthcare, and education. The open and standardized interfaces in the Ericsson architecture facilitate integration with third-party applications and industry-specific platforms, lowering barriers to adoption for vertical markets. This enterprise-focused strategy differentiates ICE from pure consumer-oriented competitors and creates revenue streams less susceptible to price-based competition.
| KEY INSIGHT ICE’s $220 million investment in AI-powered 5G infrastructure with network slicing positions the state operator to monetize enterprise and government verticals through network-as-a-service models, avoiding pure price competition with private carriers while delivering mission-critical connectivity for public safety, transport, and industrial use cases. |
Related Reading
- UK Ministry of Defence Private 5G Framework: Ericsson Wins Role in £8 Billion RM6393 Tactical Communications Upgrade Through 2034
- Spain installs a permanent NATO tactical 5G network at Lešť
- Digital Twins and Private 5G: The Feedback Loop Explained
- Tampa Electric Private LTE Network Deployment with Ericsson, OneLayer, and Burns & McDonnell Secures Mission-Critical Grid Communications Across 2,000 Square Miles of Florida Territory
Frequently Asked Questions
What is the total value of the ICE-Ericsson 5G contract in Costa Rica?
The contract is valued at $220 million, covering 5G RAN equipment, a dual-mode 5G Core solution, LTE RAN expansion, and the first Latin American implementation of Ericsson’s Intelligent Automation Platform with AI-powered rApps.
When will ICE’s 5G Standalone network go live for commercial services?
Mass commercial 5G services are expected to launch within approximately 12 months following the April 28, 2026, contract award, once the base infrastructure implementation phase is complete across Costa Rica.
What network slicing use cases will ICE’s 5G deployment support?
The deployment prioritizes public safety communications, transport sector applications including vehicle-to-everything (V2X), industrial automation and IoT, and digital services for government and enterprise customers requiring guaranteed capacity and low latency.
How does ICE’s 5G investment compare to competitors in Costa Rica?
ICE’s $220 million contract significantly exceeds Liberty Costa Rica and Claro Costa Rica’s combined $32.5 million spectrum auction spending, reflecting a broader infrastructure modernization including advanced automation, slicing, and nationwide LTE expansion alongside 5G.
What is the Ericsson Intelligent Automation Platform (EIAP)?
EIAP is an AI-powered automation suite using rApps (RAN applications) to optimize network performance, reduce operational complexity, and enable dynamic resource allocation. ICE’s deployment marks the first EIAP implementation in Latin America.
Will ICE offer private network services using the 5G infrastructure?
While positioned as a public network, the inclusion of network slicing capabilities enables ICE to offer dedicated virtual networks to enterprise and government customers, functionally equivalent to private 5G but leveraging shared infrastructure.
