WiseGuyReports.com report Added”Cuba’s Telecom Sector to Thrive as Government Controls Dilute & New Vendors Enter Markets” to Research Databae
Scope of the Report:
Cuba’s telecom sector remains peculiar, owing to the control of the state stagnating instead of promoting the development of all sectors. Cuba has the lowest usage of mobile phones or the internet in the entire region and the fixed-line teledensity remains at the lowest. Fixed-line and mobile services by Emmpresa de Telecommunicaciones de Cuba (ETESCA Cubacel), which is controlled by the government residing in the country, hold a monopolistic domination in the region.
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The state holds a substantial control over the right to own and use of communication services, including access to the internet. Even though this fact is prevalent, the formation of a cordial relationship between Cuba and the US has encouraged the government to undertake initiatives to provide better access to services. Since 2015, WiFi-hotspots up to 317 were deployed by 2016. The connectivity in these regions is slow, and many public areas are witnessed fast-paced boost in the black market which is duplicating the connection using software or by installing nano routers. This has enabled access to the internet for large population.
ETESCA is charging heavily for slow connectivity and the provision of basic internet access. Even though the cost of internet access was reduced to CU1.50 per hour in the end of 2016, it is still extremely high and not affordable for most Cubans. Access to sites came with stringent control and a lot of censorship. A DSL service was launched in the March of 2017 in various areas of Havana. This DSL service has been witnessing proliferation, even though most Cubans cannot afford the high cost that is set for the accessibility of the service.
3G services saw their launch and are made available to more than 60% of the population by 2018 end. However, the cost of such services is also too high and the locals are accepting of the fact that the technology is backdated. Even though ETESCA has announced trial plans of installation of LTE, any evident progress on this announcement is yet to be seen.
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ETESCA has also installed several base stations and signed interconnection and roaming agreements with a US-based telecommunications company, to provide services, specifically to US tourists. The ongoing thawing of relations between the US is promising considerable growth for the Cuban economy. This holds special importance owing to the economic difficulties faced by the country’s chief sponsor Venezuela. In January 2016, the FCC allowed US-based organizations to enter into business relations directly with the Cuban telecom sector. Additionally, the government has started having a favorable outlook on proposals for new subsea cable to link Cuba directly with Florida. This, in turn, would supplement the only direct international cable access using the ALBA-1 cable from Venezuela.
Key Developments
There are various key developments in the Cuban telecoms, mobile, broadband, and digital media sectors. These developments are vital in understanding the progress noted over the years and the trajectory taken by the sectors in the foreseeable future
- The US government completes subsea cable linking between Florida and Guantanamo Bay Naval Base
- AT&T, Verizon Wireless, and Sprint have signed interconnection and roaming agreements with ETESCA
- Netflix launches services after the trade restrictions with US companies were lifted.
Continuous…..
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