Verizon has signed a direct roaming agreement with Cuba's state telecom company Etecsa.
In September 2015, Verizon became the first American wireless company to offer roaming services in Cuba. Verizon took advantage of U.S. President Barack Obama's move to open relations with a former Cold War foe of the country.
For about five decades, calls between the two countries had to pass via a third country, which adds expense and reduces the voice quality of calls.
"The service agreement will initially allow the offering of voice services through direct interconnection between the two countries and will be operational once implementation and technical testing requirements are completed by both companies," says Etecsa.
Verizon is not the only U.S.-based carrier to seal a deal with Etecsa. Sprint has also signed a direct roaming agreement with the state telecom company.
The deal with Verizon and Sprint will benefit Cubans residing in Cuba as well as those in the U.S. Reports suggest there are around 11 million Cubans in Cuba and around two million Cubans in the U.S. These people will be able to make and receive better-quality voice calls over reduced rates than ever before.
The U.S. revealed its plans to restore full relations with Cuba and the opening of an embassy in the country's capital, Havana. President Obama had long expressed hopes of improving the relationship with Cuba, and in late 2014, confirmed plans of restoration of full diplomatic relations with the island neighbor.
"We will end an outdated approach that for decades has failed to advance our interests, and instead we will begin to normalize relations between our two countries," said President Obama.
The change in diplomatic stance will also boost tourism. Experts suggest that about 1.5 million Americans would travel to Cuba each year if full travel restrictions were removed. However, American tourists may still find it difficult in Cuba, as many U.S.-issued credit cards do not work in the country.
"Cuba's tourism infrastructure, in our opinion, is not ready to absorb that," said Laurent de Kousemaeker, Marriott's chief development officer for the Caribbean and Latin America.
Increase in American tourists also means that visitors will want to contact friends and family back home. Many Americans may also prefer using services from Verizon and Sprint than other providers.
Only time will tell how Verizon and Sprint benefit from the direct-interconnection agreement with the Cuban state telecom company.
Photo: Eric Hauser | Flickr
