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Better US-Cuba Relations a Boon for Telecom Industry?

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Better US-Cuba Relations a Boon for Telecom Industry?

 
March 02, 2015

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  By Michelle Amodio, TMCnet Contributor
 


The relationship between the U.S. and Cuba is changing fast, and that change is already making waves in the tech and telecom sector.

IDT Corporation, a U.S.-based carrier of international long distance calls, recently reached an agreement with Empresa de Telecomunicaciones de Cuba S.A. (ETECSA), Cuba’s national telecom provider, to exchange international long distance voice traffic between the U.S. and Cuba directly. This was news as of mid-February.


More recent news seems to contradict these statements, saying that there have been no official talks between Etecsa and IDT, or whether the content of the agreement is even available.

A press statement dated February 19 quoted Bill Pereira, Chief Executive Officer of IDT Telecom (News - Alert), “We are very pleased to have reached this groundbreaking agreement with ETECSA. This is an important first step in the liberalization of telecommunications between the U.S. and Cuba. Ultimately, the agreement will help make it easier and more affordable for our customers to call friends and family in Cuba.”

That announcement was made after revisions to the Cuban Assets Control Regulations announced by the U.S. government were announced.

ETECSA said “The restoration of direct communications between the U.S. and Cuba will allow greater facilities and quality in the communications between the people of both nations.”

ETECSA is the only company allowed so far in the country to provide public and private telephone service and Internet connectivity.

Since 1996, the island has been connected to the Internet mainly through satellites due to the restrictions of U.S embargo, which prohibits the country from connecting to the undersea cables nearby. Washington approved in January the plan to provide the island with some telecommunications services as part of its new policy towards Havana.

Will this be a boon for the telecommunications industry? Time will tell.

 
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