U.S. government wants clarity on Telefonica's Cuba business dealings

The U.S. government continues to investigate Spain-based companies like Telefonica (NYSE: TEF) that do business in Cuba, a country that officials call a "state sponsor of terrorism."

Last November, the Securities and Exchange Commission sent a letter to Cesar Alierta warning him about his company's Cuban affiliate, Telefonica Data Cuba. Telefonica told the SEC that it already sold off its stake in Data Cuba in 2005, adding that it does not plan to make any new investments in Cuba.

The service provider said in the confidential letter that it also asked the Cuban government about a possible sale of state-run Etecsa, but neither party ever reached an agreement.

For more:
- El Pais has this article

Related articles:
Venezuela to build submarine cable link to Cuba
Telefonica takes 400 Gbps over DWDM test drive
Cuba-Venezuela cable could finally open up in July 2011
Telecom Italia could raise $2.05 billion through asset auction
TeleCuba Communications to build U.S.-Cuba cable