WASHINGTON-With a U.S.-Cuban custody battle and U.S.-China trade dominating business in the nation’s capital these days, the question arises: What are the prospects for future U.S.-Cuban telecom trade?
The answer is not easy to come by, given the lack of full diplomatic ties between the U.S. and Cuba generally and Cuba trade restrictions specifically.
But times are changing. Communist leader Fidel Castro is aging, and there are signs here and there-like U.S.-Cuban professional baseball games-of a possible thaw down the road in U.S.-Cuban relations.
Here in the United States, Hispanics are growing in number and political influence.
The fight over whether 6-year-old Elian Gonzalez should remain with relatives here or return with his father to Cuba has put a spotlight on U.S.-Cuban relations that arguably is as bright as any time since the 1962 Cuban missile crisis.
A few clues suggest telecom could one day be a powerful economic driver in Cuba, perhaps as big as the sugar or cigar industries.
A lot depends on whether democracy ever comes to Cuba, a pitifully poor country with 370,000 telephone lines for its 11 million people. Given that scenario, wireless technology would be a prime candidate to readily satisfy communications needs in Cuba.
In some respects, a foundation already has been laid for U.S.-Cuba telecom trade.
Under the Cuban Democracy Act of 1992 and the Cuban Liberty and Democratic Solidarity Act of 1996, telecommunications services between U.S. and Cuba are authorized. The laws include procedures for U.S. firms, which have negotiated agreements, to make payments to Cuba for telecommunications traffic back and forth between countries.
In his semiannual report to Congress on March 27, President Clinton said eight licenses have been granted to provide telecommunications services to Cuba.
Firms with licenses include AT&T Corp., AT&T de Puerto Rico, IDB WorldCom Services Inc., MCI International Inc., Telefonica Larga Distancia de Puerto Rico Inc., WilTel Inc., WorldCom Inc. and Sprint Corp. Some licenses involve firms that have merged.
For sure, other countries are taking note of Cuba’s underserved telecom market. Cuba’s telecom sector has been the single largest draw for foreign investment ($650 million) since 1990, according to the State Department.
