FCC Record, Volume 26, No. 7, Pages 4843 to 5761, March 28 - April 08, 2011 Page: 5,220
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8. There are currently no telecommunications services provided by U.S. carriers on a direct
basis between the United States and Cuba. In 2000, Cuba cut off all direct links with U.S. carriers
because U.S. policy prevented U.S. carriers from paying a $0.24 per minute surcharge demanded by Cuba
on top of the then-$0.60 per minute settlement rate allowed by the 1993 State Department guidelines to
terminate telephone calls to Cuba.'" In addition, there are no commercial submarine cables directly
connecting the United States and Cuba. The Commission, however, permits satellite services to Cuba,
which are occasionally used for video and data services.
9. While U.S. carriers provide no direct service between the United States and Cuba, U.S.
carriers route calls on an indirect basis between the United States and Cuba, using a process called
reorigination. Under reorigination, U.S. carriers route traffic from the United States destined for
termination in Cuba to a carrier located in an intermediate country. The intermediate country carrier
accepts the U.S. traffic and terminates it with the Cuban carrier as its own traffic under settlement
arrangements it has with Cuba. The U.S. carrier makes a settlement payment to the intermediate country
carrier to arrange for the termination of its traffic, but does not make a settlement payment to any carrier
in Cuba. According to the most recent published reports filed by U.S. carriers, 18 U.S. carriers report
providing service between the United States and Cuba on a reorigination basis.'9
10. TeleCuba's Service to Cuba. In 1999, the Commission authorized TeleCuba to provide
facilities-based and resale telecommunications services between the United States and particular
international points.20 In 2003, the Commission further authorized TeleCuba to provide services directly
to Cuba via satellite circuits.21 TeleCuba provided direct service under that authorization for a short
period of time in 2003. TeleCuba states that it "ceased all direct and indirect telecommunications services
to Cuba when the rate increased and it has not engaged in transit agreements with any intermediate
countries for the purpose of transmitting telecommunications service to Cuba."22 It has not since
Is See 1993 State Department Letter at 2. The 1993 State Department policy guidance provided that settlements
more favorable to Cuba than the current 50/50 split of the $1.20 per minute accounting rate not be permitted.
19 See 2008 International Telecommunications Data, Strategic Analysis and Negotiations Division, International
Bureau, FCC (published March 2010). This report compiles data on telecommunications service between the United
States and international points, based upon information submitted to the FCC by U.S. carriers pursuant to 47 C.F.R.
43.61 of the Commission's rules. The 2008 International Telecommunications Data and the reports for previous
years are available at http://www.fcc.gov/ib/sand/mniabitraffic/
20 See Public Notice, Report No. TEL-00098, ITC-214-19990428-00255, DA 99-1152, 14 FCC Red 9992 (Int'l Bur.
1999). The authorization was granted to World Group, Inc., which changed its name to TeleCuba Communications,
Inc. See Public Notice, Report No. TEL-00279 ITC-214-19990428-00255, DA 00-1952, 15 FCC Red 18905 (Int'l
Bur. 2000). On April 1, 2005, TeleCuba, Inc. notified the Commission of its name change to IConnect Wholesale,
Inc. See Public Notice, Report No. TEL -00910 ITC-214-19990428-00255, DA 05-1344, 20 FCC Red 8897 (Int'l
Bur. 2005). Under this authorization, TeleCuba does not have specific authority to serve Cuba on a direct basis, as
such authority must be filed as a separate section 214 application pursuant to section 63.18(e)(4) of the
Commission's rules. See 47 C.F.R. 63.22.
21 Telecuba, Inc., Application for Authority to Provide Facilities-Based Services to Cuba, Order, Authorization and
Certificate, 18 FCC Rcd 9404 (2003) ("2003 TeleCuba Order"). Under the Order, the International Bureau specified
that Telecuba is permitted to lease and operate a 3 Mbps satellite circuit to provide service between the United States
and Cuba. Additionally, in accordance with the 1994 State Department guidance, TeleCuba was required to split
50/50 with ETECSA the $1.20 per minute accounting rate for switched telecommunications services, and the
surcharge agreed to between TeleCuba and ETECSA for received collect calls shall be no greater than $1.00 per
22 See May 21 Letter at 2. By letter dated April 5, 2005, TeleCuba notified the Commission of its name change to
IConnect Wholesale, Inc. See Public Notice, Report No. TEL -00910 (Int'l Bur. rel. May 12, 2005).
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United States. Federal Communications Commission. FCC Record, Volume 26, No. 7, Pages 4843 to 5761, March 28 - April 08, 2011, book, April 2011; Washington D.C.. (digital.library.unt.edu/ark:/67531/metadc52169/m1/392/: accessed May 26, 2017), University of North Texas Libraries, Digital Library, digital.library.unt.edu; crediting UNT Libraries Government Documents Department.