Sprint Looks To Connect Americans To Cuba

As President Barack Obama works together with Raul Castro to restore diplomatic relations between the U.S. and Cuba, many are beginning to wonder whether the tiny island nation will offer a new market to U.S. companies. Strict laws governing U.S. trade with Cuba has kept most U.S. firms from serving Cubans, but new regulations have opened the door for American businesses to make a move.

Sprint Sees Possibility

As Reuters reported, Sprint Corp (NYSE: S) wasted no time taking advantage of the relaxed trade rules; the company's Boost Mobile business introduced a new plan on Thursday that allows customers to call and text Cuba. The plan is touted as the lowest cost option for prepaid customers, at $50 per month and $0.30 per minute with unlimited texting.

Related Link: Obama Intends To Remove Cuba From 'State Sponsor Of Terrorism' List, CUBA Fund Spikes Up

Sprint Finds A New Demographic

Because the U.S. is home to a large population of Cuban Americans who still have family and friends living on the Island, Sprint is hoping to gain new subscribers and become a well known provider for that demographic. The company has already been active in the Cuban-American community through its support for Roots of Hope, a group of professionals supporting the advancement of American relations with Cuba.

Cuban Telecom Sector Worlds Away

Cuba's telecom sector is vastly behind that of the U.S. Only a small sliver of the nation's 11 million people have access to a cell phone, something many attribute to the U.S. trade embargo from the 1960's. With the more relaxed trade rules, Cuban officials say they hope to spread mobile connectivity to more than 60 percent of the population by 2020, Reuters noted.