Spanish telecoms giant Telefonica is reportedly lining up an offer to buy-out Telecom Italia’s 30 percent stake in Cuba’s incumbent operator, Etecsa. According to a report in Telegeography today, which cites an earlier report in Italian newspaper Il Sole 24 Ore, Telecom Italia is reportedly looking to divest its stake in Etecsa as it has not been profitable. The report adds that the two European partners (Telefonica is a shareholder in Telecom Italia) are currently looking to agree on a price. In December 2008, Telefonica was said to be planning an offer of up to US$500 million for the Etecsa stake, although Telecom Italia is reportedly looking for a price closer to US$780 million.

Etecsa is controlled by the Cuban government – owner of the remaining shares in the company – and is the country’s principal provider of fixed-line, mobile and Internet services. According to Wireless Intelligence data, Cuba had 430,000 mobile connections at the end of 2008 via Etecsa’s Cubacel mobile brand. Recent reports have suggested that a host of international operators could soon enter the market following US President Obama’s decision to ease long-standing economic restrictions against the country.