US company that sells phone cards to immigrant communities strikes deal with Cuba

MarketsAssociated Press

A New Jersey-based company that sells discount international calling cards to immigrant communities says it has struck a deal with Cuba's state telecommunications company.

The deal, which is pending U.S. government approval, appears to be the first under U.S. reforms enacted this year that allow U.S. telecom firms to deal directly with Cuba.

Continue Reading Below

IDT Corp. said in a press release the deal could create "a direct interconnection into Cuba" but offered no details of what that meant. An IDT spokesman did not immediately respond to requests for clarification.

The deal also was reported in Cuban state media without details.

Cuba charges some of the world's highest rates for long-distance calling and calls into Cuba are also among the world's most expensive.