The President’s Cuba proposal revived hope for undersea cable inv...

any time soon given how “strategic the monopoly over telecom is for the political control of the Castro administration,” it said. Additionally, entry into the enterprise market could be even tougher given the Cuban government’s legacy investment and ownership of its operator ETESCA. U.S.-based carriers interested in bidding for contracts in Cuba will also be competing with numerous foreign providers that have a strong presence in the region. The firm noted America Movil, which owns and operates the Claro wireless band in 21 countries in the Caribbean and Latin America. Telecom Italia may be unwilling to cede its “dominant position” as the only commercial communications entity in Cuba to foreign competitors. It could enter partnerships with new entrants in both the consumer and enterprise segments but much will depend on how both markets are structured. However, pressure among both U.S.- and foreign-based providers and equipment companies is likely to grow in anticipation of expanding existing share in submarine cable infrastructure and capacity throughout the Caribbean. The firm noted new FCC international cable systems rules that revised the earlier pre-circuit regulatory fee structure with one that imposes fees on a per landing license basis based on the size of the system. Meanwhile, the firm noted a new $300 million Trans- Pacific infrastructure project to build a undersea cable system linking the U.S. and Japan. Google’s a partner in conjunction with Bharti Airtel, Global Transit, KDDI, Pacnet and SingTel. Google’s entry into the cable sector is significant and the company could be a contender for any joint undersea cable system landing into Cuba, the research firm said.