Obama has eased 47 year old restrictions on US telecom companies doing business in Cuba. This is a very progressive step for the Island’s citizens who suffer from out-dated infrastructure and may be a harbinger of a new era in bi-lateral relations.
It will be interesting to observe how open the Cuban government will be to granting spectrum and operating permits to US companies. Clearly it’s a closed market, but US Government spokespersons have idealistically indicated that they believe the Cuban government won’t be able to stop the wave of technology. The US embargo did not apply to leading Carribean and Central American carriers for example Digicel or Americas Movil, and they are not there.
Nonetheless, wireless broadband and VoIP could make a revolutionary impact on the Island, or at least help the many Canadian and European tourists keep in touch from resort vacations.
Meanwhile, wholesale pricing for telecommunications termination to Cuba remains among the highest in the world, and retail pricing into the Island can be as steep as a dollar a minute. How long before pricing normalizes with termination costs to other Caribbean Islands? Only time, Castro’s health and the sales of pre-paid SIM card phones in Miami for any US network that is successful in obtaining roaming agreements or building their own network will tell.
Posted by au24 
