
Alphabet Inc (NASDAQ:GOOGL) subsidiary Google has reached an agreement with the Cuban Government that paves the way for it to expand its services and products into the communist nation. The deal follows the opening of the tech giant’s technology center in the capital city early this year, as the US continues to lift sanctions that have crippled the Islands economy for decades.
Google-Cuba Deal
According to people familiar with the matter Google’s chairman, Eric Schmidt, is to sign the agreement on Monday in Havana. Cuban officials are aggressively pushing for deals with US companies ahead of President Barack Obama’s exit from office. The country has already issued three US cruise companies’ permission to cruise to the island ahead of President-Elect Donald Trump assuming office early next year.
Under the terms of the deal, Cubans are to gain access to the tech giant’s cache of global services and products that include search and YouTube. The agreement is also expected to cure one of Cuba long-running problems that entail slow internet speeds. As it stands, data usage in the country must travel through convoluted paths to servers in the US which most of the time results in slow internet connections.
Expanding Target Market
It is still unclear whether Google will relocate some of its servers into the island nation as one of the ways of boosting internet speeds. There is also a possibility that the tech giant could build some servers closer to the nation than the current ones available.
The agreement with the Cuban Government is a milestone achievement for the search giant, which is exploring new ways of bringing up more than 1 billion people online. Improved internet connections should go a long way in enticing more people to join the World Wide Web something that should boost Google’s target market given its wide array of product and services.
Alphabet stock was a big mover in Friday trading session having rallied by $14.28 to close the week at highs of $809.45 a share.