Boost Mobile which is a part of Sprint Corp (NYSE:S) introduced a prepaid cell-phone service for U.S. customers calling and texting Cuba. The new plan is launched following the latest relaxed U.S. commercial regulations with the Cuba. The new policy regulations have been passed by the Treasury and Commerce departments. The new changes pave the way for U.S.-based telecommunications companies to offer potentially lucrative cell-phone services to Cuba.
The growing market
In March, IDT Corporation (NYSE:IDT) finalized a deal with Cuba’s ETECSA to offer direct international long-distance calling service. All the major companies intend to capitalize on the opportunities offered in the new potential markets. Boost Mobile, a part of Sprint Corp (NYSE:S), offers prepaid wireless services to customers. The biggest advantage is that to avail to services the customers don’t need to opt for long-term subscription contracts.
The plans
Sprint’s Boost Mobile disclosed a $50 monthly plan, enabling consumers to pay approximately $0.30 per minute. The company states it as the lowest introductory price per minute among the other prepaid carrier companies to call Cuba. Also, the cell-phone plan offers unlimited texting. Dow Draper, the President of Sprint Prepaid, said that it is a great value. The new eased regulations and the launch of plans can be termed as a meaningful start to minimize the costs of calls to Cuba while increasing the number of subscribers.
The future ahead
In a show of harmony with young Cuban-Americans eager to enhance connectivity with the island, Sprint is donating $10,000 to entity known as Roots of Hope. It is a group formed of young Cuban-American professionals. After the U.S. imposed an economic ban on Cuba in the 1960s, telecommunication between the two nations had to via through third countries, considerably increasing calling costs. The new eased regulations offer benefits for both the customers as well as telecom companies.
