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The U.S. telecommunications industry is cautiously watching the plans to normalize relations with Cuba and its largely underserved population in the face of stiff competition in its home market.

Currently, only 5 percent of inhabitants have free access to global Internet connections through high-end hotels and government institutions. Only 23.2 percent have access to the Internet at all, and even private email accounts are routinely compromised in the name of surveillance by the government.

President Barack Obama announced late last year that the U.S. intends to normalize diplomatic relations with the small island state, and his announcement specifically targets agricultural, banking and financial institutions along with the telecommunications industry as the first to gain exceptions from the investment embargo.

Currently, telecommunications and IT products and services sell for a pretty penny. The price of a personal computer averages $700, and Internet access costs roughly 20 percent of the average minimum monthly salary.

Not all firms are sure that Cuba represents opportunity in the short-term, with it likely being a while before Cuban regulations are eased enough to make the climate good for doing business. But as with China in its early days of its industrial revolution, the opportunities look promising.

Google (News - Alert) is bullish about the opportunities in Cuba, seeing a large group of new online consumers for its services.

T-Mobile also is highly interested; the company has said that it will always look forward to promoting open telecommunications in the country as the U.S. policy evolves.

Telecom giants such as Verizon and AT&T (News - Alert), however, have stayed quiet about Cuba thus far, although that does not necessarily indicate that they are void of Cuban strategies as the market starts to open.

Time will tell to what extent the telecom industry is opened up to U.S. firms, but businesses are starting to take notice and watch developments closely.