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Stage II Cuban Tech Expansion: Cuban Cellphone Market Opens

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by Nick Marshall on April 15, 2008

Most of the world takes cellphone use for granted, but Cubans have been left out of the equation up until yesterday.  Stage II of Raul Castro’s Cuban tech expansion began by allowing Cubans to legally buy cellphones.  A huge development for the mobile community since previously Cubans had to rely on foreigners to sign up on their behalf which made it nearly impossible to experience mobile bliss.

Stage II Cuban Tech Expansion: Cuban Cellphone Market Opens

Although the news is bright, the pricing structure is out of hand to say the least.  With an average wage of $18/month and the cheapest cellphone costing $65 with a $120 contract, the tech expansion is merely a concept instead of a reality for most Cubans.  To make matters worse, the money for the phone and the contract must be paid in CUCs (a non-universally accepted currency) which is making cellphones a luxury item reserved for the wealthy.  While US carriers use subscriber revenue to build next generation infrastructure, the Cuban telecos will be using their revenue to improve land-line communication regardless of the worldwide consensus that cell networks are cheaper and faster to build.

[Credit: Reuters]

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