Could the government improve the situation if they decided to do so? They don't have sufficient funds to build out modern infrastructure and foreign investment through privatization of telecommunication would be difficult to obtain. Furthermore, that strategy has not benefited the people in other developing nations.
A decentralized strategy using a large number of satellite links could quickly bootstrap the Cuban Internet. Decentralized funding and control of infrastructure has been an effective transitional strategy in other cases, for example, with the NSFNET in the US or the Grameen Phone ladies in Bangladesh.
This proposal would face political roadblocks in both the US and Cuba; however, change is being considered in the US and the Castro government has been experimenting with small business and they have begun allowing communication agents to sell telephone and Internet time.
It might just work — as saying goes "Be realistic. Demand the impossible.""