VII. Telecommunications
61. What types of telecommunications services are recently authorized under general license?
Effective January 16, 2015, OFAC issued an expanded general license which, subject to
conditions, generally authorizes transactions that establish mechanisms to provide commercial
telecommunications services in Cuba or linking third countries and Cuba. OFAC has also updated the general licenses authorizing telecommunications-related transactions, including
payment related to the provision of telecommunications involving Cuba or provided to Cuban
individuals. Pursuant to this provision, U.S. persons may, for example, purchase calling cards for
people to use in Cuba and/or may pay the bills of such people directly to a telecommunications
operator located in Cuba, such as ETECSA. These steps to facilitate improved access to
telecommunications services for Cubans and increased international connections are intended to
increase the ability of the Cuban people to communicate freely and to better provide for efficient
and adequate telecommunications services between the United States and Cuba.
Effective September 21, 2015, OFAC further expanded this general license to authorize persons
subject to U.S. jurisdiction to enter into licensing agreements related to, and to market, authorized
telecommunications services.
For a complete description of what this general license authorizes and the restrictions that apply,
please see 31 CFR § 515.542.
62. What types of internet-based services are authorized under general license?
Persons subject to U.S. jurisdiction may provide certain services incident to internet-based
communications and related to certain authorized exportations and reexportations of
communications items. The range of such services was expanded in January 2015 to coincide
with changes to Commerce Department regulations, and such services can now be provided for a
fee to certain end users. For example, transactions incident to providing fee-based internet
communications services such as e-mail or other messaging platforms, social networking, VOIP,
web-hosting, or domain-name registration are now authorized in most circumstances. Services
related to many kinds of software (including applications) used on personal computers, cell
phones, and other personal communications devices are also authorized, along with other services
related to the use of such devices. Finally, services such as cloud storage, software design,
business consulting, and the provision of IT management and support related to use of hardware
and software exported or reexported to Cuba pursuant to the Commerce Department’s License
Exception Consumer Communications Device (CCD) authorization or commodities or software
used to develop software exported or reexported to Cuba pursuant to the Commerce Department’s
License Exception Support for the Cuban People (SCP) is permitted. For a complete description
of what this general license authorizes and the restrictions that apply, please see 31 CFR
§ 515.578.
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What type(s) of business arrangements are telecommunications and internet-based service
providers that are subject to U.S. jurisdiction authorized to establish in Cuba?
OFAC has issued a new general license that authorizes persons subject to U.S. jurisdiction to
establish and maintain a business presence in Cuba, including through subsidiaries, branches,
offices, joint ventures, franchises, and agency or other business relationships with any Cuban
individual or entity (including ETECSA) to provide authorized telecommunications and internet-
based services. For a complete description of what this general license authorizes and the
restrictions that apply, please see 31 CFR §§ 515.542 and 515.578.
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May persons subject to U.S. jurisdiction who open an authorized physical presence, such as
an office or retail outlet, in Cuba market their telecommunications or internet-based
services?
Persons subject to U.S. jurisdiction that are providers of telecommunications or internet-based
services who establish a physical presence in Cuba pursuant to the authorization in 31 CFR
§ 515.573 are authorized to engage in marketing related to that physical presence.
65. Are persons subject to U.S. jurisdiction engaging in authorized transactions permitted to
enter in arrangements with Cuban state-owned entities, such as ETECSA?
Individuals or entities subject to U.S. jurisdiction engaging in authorized transactions, either
pursuant to a general or specific license, may engage with Cuban state-owned entities as
authorized by the OFAC license. For example, a U.S. company engaging in authorized
telecommunications-related transactions pursuant to 31 C.F.R. § 515.542, such as payment for
activation, installation, usage, roaming, maintenance, or termination fees, may engage directly
with the Cuban state-owned telecommunications company, ETECSA, for these authorized
purposes.
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