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Google Strengthens Presence in Cuba With ETECSA Team Up

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Alphabet’s (GOOGL - Free Report) division Google is leaving no stone unturned to bolster presence further in the Internet services space globally.

This is evident from the company’s recent move of entering into a memorandum of understanding with Cuba-based telecommunications service provider, ETECSA, in order to strengthen Internet connectivity in Cuba where people still lack proper internet coverage and speed.

Both the search giant and ETECSA, which enjoys monopoly in Cuba, will collaborate to work on the development of a direct connection between their networks which in turn will improve the Internet traffic exchange.

Cuba Holds Promise

Cuba is experiencing increasing demand for Internet connection and services. Further, the smartphone usage penetration in the country is growing.

The roll out of 3G wireless mobile telecommunications technology by ETECSA in the country at the end of 2018 is a testament to the above-mentioned facts. Until this, the citizens of Cuba only had access to home Internet and public Wi-Fi hotspots.

Consequently, Google’s latest move will help it to cater to the ongoing digitization in Cuba. In fact, the company is well poised to leverage the benefits of growing Internet and smartphone usage in the country.

Additionally, the setup of Internet traffic exchange service as part of the deal will offer faster access to Google’s content on its servers in the country.

Further, the move will help Google in strengthening footprint in Cuba. Apart from the recent deal, the company had installed Internet servers in the country in early 2017 to enable users to access its content stored on these servers.

Alphabet Inc. Revenue (TTM)

 

Alphabet Inc. Revenue (TTM) | Alphabet Inc. Quote

Focus on Connectivity & Bolstering Global Presence

Google’s deepening focus on ensuring high speed Internet services worldwide remains a major positive.

The company’s strong Internet servers, robust Wi-Fi service and Project Loon are the key catalysts in expanding its footprint in the international regions, especially in emerging markets.

In 2018, it won a contract of connecting Kenyan rural areas via Internet with the aid of the Internet beaming balloons of its Project Loon. Notably, Google was successful in launching its balloons from Puerto Rico and moving them toward Peru.

Further, Google strengthened its position in India by winning the RailTel WiFi project. Per the project, the company made Internet accessible at 400 railway stations of the country.  The company is also trying to connect the rural India with the Internet balloons of Project Loon.

Additionally, the company has launched Google Wi-Fi mesh router system, which provides advanced Wi-Fi connectivity at home, by teaming up with Singapore-based, StarHub.

All these endeavors augur well for Google’s strong focus toward expansion of connectivity business.

Zacks Rank & Stocks to Consider

Currently, Alphabet carries a Zacks Rank #3 (Hold).

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Long-term earnings growth rate for Autohome, Facebook and Akamai is pegged at 29.41%, 18.18% and 14.67%, respectively.

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