Friday, December 16, 2016

The cost of doing business in Cuba

The U.S.-Cuba Trade and Economic Council reports that the Google Global Cache project is being paid for by Google and will cost the government of Cuba nothing.

That is not surprising since Google will gain public visibility and their services will improve. More important, it establishes a business relationship with ETECSA and the cost is a drop in their bucket -- much less than the cost of selling themselves to the Cuban government has been.

The post also states that
People’s Republic of China-based companies have and continue to provide (either at no cost or with long-term favorable financing backed by the government of the People’s Republic of China) telecommunications and communications infrastructure and consumer communication devices to the Republic of Cuba.
That is more surprising since Chinese companies, especially Huawei, are selling a lot of phones, installing a lot of infrastructure and already have business relationships with Cuba. China was also involved in the installation, and some say financing, of the undersea cable connecting Cuba to the Internet.

This post reminds me of a Wikileak from 2010 in which it was disclosed that Cuba was having trouble repaying Chinese debt.

Excerpt from US diplomatic report (Wikileaks)
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