Showing posts with label internet. Show all posts
Showing posts with label internet. Show all posts

Tuesday, February 20, 2018

SpaceX Starlink and Cuba -- a match made in low-Earth orbit?

I've suggested that Cuba could use geostationary-orbit (GSO) satellite Internet service as a stopgap measure until they could afford to leapfrog over today's technology to next-generation infrastructure. They did not pick up on that stopgap suggestion, but how about low-Earth orbit (LEO) satellite Internet service as a next-generation solution?

SpaceX, OneWeb, Boeing and others are working on LEO satellite Internet projects. There is no guarantee that any of them will succeed -- these projects require new technology and face logistical, financial and regulatory obstacles -- but, if successful, they could provide Cuba with affordable, ubiquitous, next-generation Internet service.

Cuba should follow and consider each potential system, but let's focus on SpaceX since their plan is ambitious and they might have the best marketing/political fit with Cuba.

LEO satellite service will hopefully reach a milestone this week when SpaceX launches two test satellites. If the tests go well, SpaceX plans to begin launching operational satellites in 2019 and begin offering commercial service in the 2020-21 time frame. They will complete their first constellation of 4,425 satellites by 2024. (To put that in context, there are fewer than 2,000 operational satellites in orbit today).

SpaceX has named their future service "Starlink," and, if Starlink succeeds, they could offer Cuba service as early as 2020 and no later than 2024 depending upon which areas they plan to service first.

What has stopped the Cuban Internet and why might LEO satellites look good to Cuba?

Cuba blames their lack of connectivity on the US embargo, but President Obama cleared the way for the export of telecommunication equipment and services to Cuba and Trump has not reversed that decision.

I suspect that fear of losing political control -- the inability to filter and surveil traffic -- stopped Cuba from allowing GSO satellite service. Raúl Castro and others feared loss of control of information when Cuba first connected to the Internet in 1996, but Castro is about to step down and perhaps the next government will be more aware of the benefits of Internet connectivity and more confident in their ability to use it to their advantage.

A lack of funds has also constrained the Cuban Internet -- they cannot afford a large terrestrial infrastructure buildout and are reluctant (for good and bad reasons) to accept foreign investment. SpaceX is building global infrastructure so the marginal cost of serving Cuba would be near zero.

They say that the capital equipment for providing high-speed, low-latency service to a Cuban home, school, clinic, etc. would be a low-cost, user-installed ground-station. I've not seen ground-station price estimates from SpaceX, but their rival OneWeb says their $250 ground-station will handle a 50 Mbps, 30 ms latency Internet link and serve as a hot-spot for WiFi, LTE, 3G or 2G connectivity.

Since the marginal cost of serving a nation would be small and they hope to provide affordable global connectivity, I expect their service price will vary among nations. Prices would be relatively high in wealthy and low in poor nations -- there would be no point in having idle satellites flying over Cuba or any other place.

Expansion of the Cuban Internet is also constrained by bureaucracy and vested financial interest in ETECSA and established vendors. While I do not endorse Cuba's current monopoly service and infrastructure ownership policy, it could remain unchanged if ETECSA were to become a reseller of SpaceX Internet connectivity.

In summary, if Starlink succeeds, they could offer affordable, ubiquitous high-speed Internet, saving Cuba the cost of investing in expensive terrestrial infrastructure and allowing ETECSA to maintain its monopoly. The only intangible roadblock would be a loss of control of traffic. (But Cuban propagandists and trolls would be able to reach a wider audience :-).

That is the rosy picture from the Cuban point of view, what about SpaceX?

OneWeb plans to offer LEO satellite Internet service in Alaska in 2019 and hopes to cover all of Alaska by the end of 2020.

How about SpaceX starting by serving Cuba?

I don't know the SpaceX constellation rollout plan, but satellites that serve Cuba would also be capable of serving the eastern US and FCC licenses are conditional upon providing US service in a timely manner.

Since Cuba is an island nation, portions of the footprint of satellites serving Cuba would fall on the uninhabited ocean. That would reduce population destiny in the satellite footprint area, freeing capacity for use by customers in relatively urban areas.

Selecting Cuba as its initial service market would be an audacious move, but Elon Musk is not a conventional, conservative businessman. SpaceX would get a lot of publicity from a Cuba opening and, like the roadster they just launched into orbit, first offering Starlink service in Cuba would have symbolic value -- marking an opening to Cuba.

There is pent-up demand for Internet access in Cuba since they have very poor Internet access given their level of education and development.

Cuba is 166th among the 176 nations the International Telecommunication Union (ITU) ranks on access to telecommunications. Haiti, ranked 167th, is the only nation in Latin America and the Caribbean (LA&C) that ranks below Cuba, yet Cuba ranks 9th in the region on the ITU telecommunication-skills index. Cuba ranks tenth in LA&C on the United Nations Development Programme's human-development index and their mean years of schooling is the highest in the region.

Cuba's relatively high human-development and IT-skill indices reflect its emphasis on free public education at all levels. This is exemplified by the curriculum at Cuba's Information Science University, where students pay no tuition but are required to work on useful applications in education, health, sport, and online government.

But, perhaps the biggest contributor to pent-up demand is El Paquete Semanal, a weekly distribution of current, pirated Internet content that is distributed throughout the nation. I've heard the claim that 95% of Cubans see El Paquete content each week. That sounds high, but it is very popular and has been alleged to be Cuba's largest private employer.

The political situation is the elephant in the room. The US has formed a Cuba Internet Task Force and Trump is following President Obama's lead in seeking to strengthen the Cuban Internet, so it unlikely that the US government would object to SpaceX offering Starlink service to Cubans.

That being said, such a move would be unpopular among some members of Trump's Cuban "base." While there might be some domestic political cost to SpaceX, an opening to Cuba would be seen as extremely positive in Latin America and the rest of the world and SpaceX and Tesla are global companies. (Only Israel supports the US embargo of Cuba).

If you guys want to talk about this, DM @RaulCastroR and @elonmusk.

Update 2/27/2018

Two years ago, Google invested $900 million in SpaceX, stating that they expected the acquisition would be used “to keep Google Maps accurate with up-to-date imagery and, over time, improve Internet access and disaster relief.”

In the aftermath of Hurricane Maria, Google began providing mobile phone and Internet connectivity in Puerto Rico using their Project Loon balloons and today they are serving 200,000 Puerto Rican users. They have learned from this effort and demonstrated the ability to provide Project Loon connectivity. How about using Starlink when it is available?

Starlink envisions low-cost, user-installed terminals at homes and other end-user sites, but their satellites will also have to connect to ground-stations and it turns out that Google has a lot of terrestrial points of presence on the Internet. Some of them are shown on the following map:

Google Global Cache locations(source)

Note that one of those points of presence is in Havana and two others are in Puerto Rico.

SpaceX rocketry, Starlink satellites and service plus Google's terrestrial infrastructure sounds like a formidable combination -- perhaps too formidable. A part of me would love to see such a combination succeed and eventually provide a truly global Internet, but I am also afraid of the market and political power that enterprise would have. Would this or any other global Internet service provider require unique regulation and, if so, what should it be and who has the power to do it?

If a global ISP monopoly (or even an oligopoly) doesn't worry you, what about adding strong AI -- is the Earth beginning to grow a nervous system -- with us as biological components (for the time being)?

Update 3/20/2019

SpaceX sister company, SpaceX Services, filed an FCC application for "a blanket license authorizing operation of up to 1,000,000 earth stations that end-user customers will utilize to communicate with SpaceX’s LEO constellation." Those end-users will be individuals, libraries, schools, etc. "throughout the contiguous United States, Alaska, Hawaii, Puerto Rico, and the U.S. Virgin Islands." SpaceX will begin launching operational satellites this year, and those that provide connectivity over the US east coast and Puerto Rico will have idle capacity when in sight of Cuba. Cuba isn't politically ready to allow home connectivity, but how about satellite links to Youth Clubs, schools, clinics, libraries, etc.? It would be legal from the US side and the sort of thing Elon Musk might like to do.

Update 12/30/2019

Elon Musk confirms that Starlink Broadband should be available in the Caribbean in 2020 or early 2021. See more here. How about a ground station at Google's data center?

Tuesday, June 20, 2017

Trump's Cuba policy and its impact on the Cuban Internet

Overall, I don't see anything in Trump's policy that will directly impact the Cuban Internet, but it will have an indirect impact by delaying the eventual rapprochement between the US and Cuba.

On June 12th, I speculated on Trump's forthcoming Cuba policy and its impact on the Internet. He outlined his policy in a June 16th speech (transcript) and the Treasury Department published a FAQ on forthcoming regulation changes. It looks like my (safe) predictions were accurate.

I predicted he would attack President Obama, brag about what he had done, make relatively minor changes that would not upset businesses like cruise lines, airlines, and telecommunication and hotel companies. I also said he would criticize Cuban human rights, while hypocritically ignoring the issue in other countries.

For example, he slammed President Obama and bragged that "I am canceling the last administration’s completely one-sided deal with Cuba."

This does not come close to passing a fact-check. He said he was going to restrict people-to-people travel and stop people from doing business with companies owned by the Cuban Military, but that is far from canceling President Obama's "deal," which included little things like establishing diplomatic relations, reducing constraints on remittances, dropping the wet-foot-dry-foot policy, allowing US companies to do business with self-employed Cubans, allowing US companies to sell telecommunication equipment and services, agricultural commodities, medicines, and medical devices in Cuba, taking Cuba off the list of state-sponsors of terrorism, etc. You get the idea -- he canceled none of this, not even President Obama's lifting of restrictions on rum and cigar imports for personal use.

His statements on Cuban human rights are either 100% hypocritical or he has changed his mind since his speech in Saudi Arabia last month. At that time, he promised that "America will not seek to impose our way of life on others but to outstretch our hands in the spirit of cooperation and trust."

If he really has changed his live-and-let-live human-rights policy, we can expect a spate of new sanctions, from Manila to Moscow.

I had one surprise -- his singling out hotels and other businesses operated by the military-run conglomerate, Grupo de Administración Empresarial S.A. (GAESA). Officials say existing hotel deals will not be effected, but the detailed regulations have not yet been released. This change will cut Cuban worker's jobs and GAESA's profit, but I guess the ban is good news for AirBnB and any future Trump hotel or resort in Cuba.

How about changes affecting the Cuban Internet?


I read the Fact Sheet on Cuba Policy, looking for changes that would affect the Internet, and did not find much.

The first "key policy change" is "allowing American individuals and entities to develop economic ties to the private, small business sector in Cuba." Someone should let him know that President Obama made such changes some time ago, for example in allowing software imports from the private sector.

In fact, someone should read him President Obama's 2009 Fact Sheet - Reaching out to the Cuban people. That document introduced many changes which enhance the ability of Cuban private, small businesses to "develop ties to the US," for example by authorizing "greater telecommunications links with Cuba to advance people-to-people interaction at no cost to the U.S. government." The fact sheet lists seven concrete telecommunication policy changes, none of which were "canceled" by Trump.

He has canceled none of President Obama's changes to encourage private Cuban business and added nothing new himself.

One change he did make is stopping "self-directed, individual travel" to Cuba. That will force would-be tourists to join fake groups and fake their travel reports or go to Aruba instead of Cuba, but it will not slow the deployment of Chinese telecommunication infrastructure.

I hope Trump's policy will not undo the progress made by Google in establishing a relationship with Cuba and gaining permission to install Google Global Cache servers on the island. The servers are not yet in use, and when they go online they will have a small practical impact, but they indicate that Google has built trust and a relationship with the Cuban government and Internet community. I bet representatives of Google and other companies who have established relationships with Cuba are trying to reassure their counterparts that this is a temporary, unpopular change in US policy.

Overall, I don't see anything in Trump's policy that will directly impact the Cuban Internet, but it will have an indirect impact by delaying the eventual rapprochement between the US and Cuba. The Cuban government will enjoy a few more years of claiming their economic problems are the result of the US embargo, the integration of the Cuban and American people will be slowed and The Chinese, Russians, and Iranians will have more time to establish political and business relationships in Cuba with diminished competition from the US.

Trump's speech did not change much practically -- its intent and impact were symbolic. It let him say he had carried out a campaign pledge, which was music to the ears of the Cuba-hardline audience at the Manuel Artime auditorium, named for a leader of the Bay of Pigs invasion. The talk lasted about 39 minutes with 53 applause breaks (50 for Trump, 3 for others) and a violin rendition of the Star Spangled Banner. Add to that the fact that Trump speaks slowly and repeats a lot of words and phrases, you realize that the speech was 90% political cheerleading and 10% content. You can watch the speech below, but reading the transcript is a lot quicker.


For a more comprehensive critique of Trump's Cuba policy see this article by Ben Rhodes, who was one of two White House staff members handling the negotiations leading up to our opening with Cuba. I also recommend the podcast interviews of Rhodes and Dan Restrepo, who served as a top Latin America advisor to President Obama and wrote a Cuban-rapprochement roadmap for candidate Obama before he was elected President. The interviews reveal President Obama's strategy and describe the negotiation process.

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Update 6/22/2017

Airbnb has published a report on their Cuba rentals. The following table summarizes their activity since they began Cuban operations in April, 2015:


Airbnb specializes in people-people rentals and contact so my guess is that the majority of their Cuba business has been "self-directed, individual travel," which Trump has banned. Thus, one of the two major changes he has introduced will work against his "key policy change" of "allowing American individuals and entities to develop economic ties to the private, small business sector in Cuba." It will also cut the goodwill and mutual understanding resulting from home-stay tourism. But, I bet he got a round of applause when he announced it in his speech last Friday.

For further discussion of the Airbnb report in Spanish, click here.
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