By Mark Drajem and Crayton Harrison
April 13 (Bloomberg) -- U.S. telecommunications, television and radio companies can now apply for licenses to operate in Cuba as part of a move by President Barack Obama to ease the commercial embargo on the island nation.
U.S. network providers will be permitted to establish fiber-optic links or satellite service for Cuba, and satellite television and radio companies can make the sales necessary to provide service there, the administration said today in a statement. Wireless companies will be able to apply to establish cell-phone roaming agreements with providers in Cuba.
“The thrust here is reaching out to the Cuban people and making sure that the United States government isn’t standing in the way of their desire to live in freedom,” Dan Restrepo, a White House adviser on Latin America, told a press briefing.
The changes aren’t likely to prompt a flood of new sales or investments in Cuba because of the Cuban government’s own restrictions on foreign media and broadcasters, according to Robert Muse, a lawyer in Washington specializing in Cuban trade issues.
“Why on earth would they think the Cuban government would accept this?” Muse said. “I don’t know if they want the island flooded with American content.”
Alberto Gonzalez, a spokesman for Cuba’s diplomatic operation in Washington, declined to comment on the new policies.
Looking Closely
“We’ll look at any change in U.S. policy very closely,” said Robert Mercer, a spokesman for DirecTV Group Inc., the largest U.S. satellite-television provider. “Should a new market opportunity arise in Cuba, we’ll carefully consider our options.”
Kathie Gonzalez, a spokeswoman for Dish Network Corp., the second-biggest U.S. satellite TV operator, and Patrick Reilly, a spokesman for satellite radio provider Sirius XM Radio Inc., didn’t return phone messages.
AT&T Inc. will examine the administration’s plan in detail and doesn’t have a comment yet, said spokesman Mark Siegel. Sprint Nextel Corp. spokesman John Taylor declined to comment. Jeffrey Nelson, a Verizon Wireless spokesman, didn’t return an e-mail seeking a comment.
Verizon Wireless, AT&T and Sprint are the three biggest U.S. wireless carriers. Verizon Wireless is owned by Verizon Communications Inc. and Vodafone Group Plc.
The U.S. has maintained a trade and travel embargo on Cuba since the 1960s. About $1 billion a year in potential U.S. exports are blocked by the embargo, according to U.S. International Trade Commission estimates.
During his election campaign last year, Obama pledged to ease rules for ethnic Cubans to travel and send money to the island nation.
Most U.S. agriculture and medical supplies are currently permitted to be sold to Cuba under the terms of the embargo. Business travel to market those products had been restricted.
To contact the reporter on this story: Mark Drajem in Washington at mdrajem@bloomberg.net
Last Updated: April 13, 2009 18:18 EDT
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