World Dialogue on Regulation

Cuba’s government will allow Cubans to buy and use mobiles for the first time. According to figures from the International Telecommunication Union, Cuba has by far the lowest mobile penetration rate in Latin America. Until now, mobile service was restricted to foreigners and government employees.

Cuban telecommunications monopoly ETECSA, 27% owned by Telecom Italia, said it would start offering mobile service to the general public within days. Some Cubans already have mobiles registered in the name of foreigners or their work places. They will now be allowed to subscribe to mobile service in their own names, ETECSA said.

President Raul Castro has started to remove some of the restrictions on Cubans as he attempts to help improve living standards. Castro has promised to quickly remove "excessive regulations and prohibitions".

Other consumer restrictions are also being removed. Starting in April, Cubans will be allowed to purchase computers and DVD players for the first time. Two years ago, DVD players were being confiscated by customs officials upon arrival in Cuba.

One outstanding concern related to consumer goods is that wages are paid in Cuban pesos, but consumer goods must be purchased using convertible pesos (CUCs) worth 24 times more than pesos. Cubans will pay for their mobiles with prepaid cards bought in CUCs. About 60% of Cubans have access to hard currency from cash remittances sent by relatives living abroad, through bonuses or through tips from foreign tourists.

ETECSA said the hard currency it generates through its mobile service would be invested in the expansion of its fixed line network.

Source: Reuters - WDR/Intelecon Regulatory News.