Showing posts with label roaming. Show all posts
Showing posts with label roaming. Show all posts

Tuesday, March 15, 2016

Verizon's direct-connection agreement is nice, but it's not the Internet

Verizon and Sprint both offer mobile roaming in Cuba, and Verizon has just signed a direct-connection agreement.

I am frankly not sure what the difference is between a "direct-connection" and their earlier "roaming" agreement, but it sounds like simpler routing, eliminating middle-man networks.

That should lead to better sound quality and lower prices. Verizon has not announced their prices, but we can get a clue by looking at today's roaming prices. Sprint charges $2.49 per minute for voice calls, $1.99 per megabyte of data and 50 cents to send SMS text messages. (Receiving SMS messages is free). Verizon’s current roaming rates are $2.99 per minute for voice calls and $2.05 per megabyte of data.

IDT, which established a direct connection with Cuba last year, claims "crystal clear conversations, low rates and no hidden fees." Their rates for calling Cuba from the US are shown below, but I cannot find their rates from Cuba and I don't understand the difference between the 65 cents a minute and 83 cents for three minutes services.


It is also rumored that AT&T will announce some sort of deal before President Obama's trip to Cuba, so we may soon have cheaper phone calls between the US and Cuba.

That is good, but, to paraphrase Bill Clinton -- "It's the Internet, stupid."

As shown below, mobile traffic is increasingly data, not phone calls. We called them "phones" till about 2011, but now they are "computers."

Source: Akamai

ETECSA said the service agreement will "initially allow the offering of voice services," which perhaps implies that they will eventually offer data services, but nearly all of Cuban mobile connectivity is 2G.

These deals demonstrate that Cuba is willing to let a state enterprise deal with US companies and they may be feet in the door leading to eventual domestic infrastructure agreements, but that remains to be seen. In the meantime, direct or indirect roaming may be mostly for tourists and Cubans will still crowd around ETECSA hotspots.

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Update 3/18/2016

If you are serious about the question of telephone regulation between the United States and Cuba, you need to follow the writing of Eduardo Guzman. For a detailed history up to last year, see his article Telecommunications in Cuba and the U.S. Embargo: History, Opportunities, and Challenges

There have been many regulatory changes since that time, leading up to the establishing of direct telephone connections by IDT, Sprint and Verizon. Guzman surveys the history then brings us up to the present in a long blog post "U.S.-Cuba Telecommunications: Turning the Corner."

Direct telecommunication service between the United States and Cuba essentially ended after the imposition of the embargo in the early 1960s. The Cuban Democracy act of 1992 allowed US carriers to provide telecommunications services between the U.S and Cuba, but there were so many strings attached -- including a $.60 per minute cap on settlement rates -- that nothing happened.

The deadlock was broken by the Obama Administration and Guzman imagines that we will see "increased use of cellphones to make direct calls to Cuba from the U.S., more options for traditional wireline long distance service to Cuba from the U.S., and new products sold to U.S. consumers to allow their relatives and friends in Cuba to make cheaper calls to the U.S." as well as services aimed at U. S. tourists roaming in Cuba.

That will enable families to talk with each other and tourists to call home, but it does nothing for broadband connectivity, which would require further negotiation and, more important, upgraded Cuban infrastructure. We've "turned a corner," but the road ahead is long and full of obstacles.

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Update 5/11/2016

T-Mobile now offers roaming in Cuba. Sprint and Verizon already offer Cuban roaming and AT&T is negotiating a roaming agreement with ETECSA. But, roaming is not the Internet.



Saturday, February 20, 2016

Sprint connected Cuba in 1996, how about 2016?

Does Sprint have an advantage over other US companies?


Journalist Mark Walsh (@markfwal) sent me an interesting conjecture -- perhaps Sprint is well positioned to play a role in Cuba's mobile connectivity. He pointed out that Sprint already offers cell phone roaming in Cuba and their CEO, Marcelo Claure, seems like he might be a natural for dealing with Cuba. (Verizon also offers roaming in Cuba).

Claure was born in Bolivia and founded Brightstar, a Miami-based distributor of wireless devices in 1997. Today Brightstar designs, manufactures and distributes wireless equipment and offers services to 200 mobile network operators, 40,000 retailers, and 15,000 enterprise customers in over 50 nations, 20 of which are in Latin America and the Caribbean.

Birghtstar was bought by SoftBank, which also owns 80% of Sprint, and Claure became CEO of Sprint in 2014.

So Claure is from Latin America, has done business in Cuba and other Latin American nations and has ties to Miami and, doubtless, the Cuban community there. On top of all of that, he is active in promoting professional soccer.

The final hint is historical. In the 1990s, the United States National Science Foundation (NSF) had an International Connectivity Program (ICP), which connected research and education networks in many developing nations.

The ICP provided access to the Internet by linking foreign networks to NSFNET, the NSF backbone network in the US. The ICP funded Cuba's first Internet connection, providing a link from the US to Cuba's National Center for Automated Information Exchange (CENIAI), which also had non-Internet links to Russia and Canada.

You may have guessed by now -- that link was provided by Sprint, under contract to the NSF. As Jesus Martinez, the head of CENIAI at the time, put it:
After so many days, years of sacrifice and vigilance, I have great satisfaction to announce that our beloved Cuba, our "caiman of the Indies," has been connected to the Internet as we had desired. We have a 64 Kbps link to Sprint in the U.S.
You might be surprised to read that Cuba was allowed to connect to a US network over a link provided by a US company -- what about the embargo? Steve Goldstein, who headed the ICP, says the program was authorized by the government:
In the case of Cuba, we applied for a license to route its traffic on the NSFNET backbone and in the (NSF regional networks) from the Department of the Treasury, which administers the Trading with the Enemy Act. Treasury coordinated it with State and other government agencies, as did Commerce when we asked for advisory opinions about Russia, for example.
Well, what do you think? Does Sprint have an advantage over other US companies? Would they be able to compete successfully against Chinese companies that are already in Cuba?

Sprint CEO Marcelo Claure signing a roaming agreement with ETECSA

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Update 2/27/2016

Armando Camacho has translated this post into Spanish on his blog Carpe Diem.

Saturday, September 19, 2015

Verizon roaming in Cuba -- much ado about not much

While Verizon customers may be able to make $2.99 per minute 2G calls, it seems their $2.05 per megabyte data service will be limited to few locations.

President Obama is continuing to use executive powers to nibble away at the embargo. Some US companies will be allowed to establish Cuban offices and Verizon has announced that they will offer roaming in Cuba.

Verizon's roaming rates will be steep -- $2.99 per minute for calls and $2.05 per megabyte for data. Most of Verizon's roving customers will be non-Cubans, so we should not read to much into the prices, but one wonders what Verizon's split with ETECSA is and whether this foreshadows ETECSA's strategy.

ETECSA's policy is a key unknown in predicting the future of the Internet in Cuba. If their goal is to maximize profit, their monopoly position will inevitably lead to high prices, conservative infrastructure investment and poor service. A goal of maximizing government revenue would do the same.

Reader Ray Rodriquez has raised another interesting question -- how does ETECSA plan to handle the data? At those prices and with relatively few users, I doubt that the volume of data will be a problem, but what about connectivity and coverage?

We have been speculating on the Cuban backbone, and have concluded that there must be connectivity from each city with a WiFi access point to the cable landing at the east end of the island since almost 100% of Cuba's international traffic is now routed over the cable.

But how many of ETECSA's cell towers are able to reach the backbone? How many are able to handle even 3G data? Looking at Cuba's annual ICT statistical report, we see that the percent of the population with (predominantly 2G) cell phone coverage has barely increased since 2010 and it has been flat at 85.3 percent since 2012.

While Verizon customers may be able to make $2.99 per minute 2G calls, it seems their $2.05 per megabyte data service will be limited to few locations.

Like the Netflix offering, this is a symbolic start, but, as we have seen -- in a nation with nearly no Internet access, a little bit gets a lot of hype.

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Update 9/19/2015

More on the executive easing of embargo restrictions.

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Update 2/13/2016

Experience getting online in Cuba for Americans and Europeans

Bloomberg editor David Rocks reports that Americans can use Verizon Wireless roaming at a cost of $2.99 per minute for phone calls and $2.05 per megabyte of data. Sprint roaming is $2.49 a minute and $1.99 per megabyte of data. AT&T or T-Mobile users are out of luck.

For people with European cell service, the situation is better. The author was able to use his Vodafone account, The author was able to use voice and data, making voice calls using WhatsApp. He was even able to use his phone as a mobile hotspot and stream YouTube video to his laptop, although most of the time it was too slow for streaming.

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Update 2/19/2016

Journalist Mark Walsh (@markfwal) pointed out that Sprint also claimed to be the first U.S. Carrier to sign a direct roaming agreement with Cuba. The Sprint claim came a month or so after the Verizon claim -- is the Sprint service different than what Verizon offers? Has anyone tried either?
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