ETECSA runs out of funds: They acknowledge that there are no foreign currencies to modernize the network

The state telecommunications company admits that they can no longer modernize the infrastructure due to a lack of funds. Cuba is running out of connectivity… and excuses.


In the midst of the economic collapse affecting all sectors of life in Cuba, the state telecommunications monopoly, ETECSA, publicly acknowledged that it no longer has foreign currency to maintain the pace of technological investments it upheld until 2022.

The admission was made by Kevin Castro Rodríguez, Deputy Director of the Vice Presidency of Network Operations, in statements to the official portal Cubavisión Internacional.

"Our sources of foreign currency income have been seriously affected. What does that mean? It has become very difficult to continue with the investment plan we developed until 2022," admitted Castro, confirming what millions of users experience daily: an increasingly congested, slow, and unstable network.

The executive justified the connectivity issues —both in fixed telephony and in mobile and internet services— by a combination of factors: the sustained increase in demand, the lack of foreign currency, external interference caused by illegal antennas, and more recently, a wave of vandalism against telecommunications infrastructure.

Only in Havana, where there are 1.9 million mobile lines, 450,000 fixed lines, and over 68,000 Nauta Hogar services, 47 serious incidents were recorded in 2024, and 10 cases have already been reported in 2025 so far.

According to ETECSA, these damages include cuts to fiber optic cables, theft of batteries, burning of poles, and the demolition of towers, some of which are considered “counter-revolutionary acts”.

"They are impacts that have a very severe effect on the company's economy and on the country's security," said Castro, detailing that a single break in the fiber optic cable in Camagüey resulted in losses exceeding 16 million CUP, in addition to affecting airport services.

But beyond the vandalistic acts, what the company itself acknowledges is that the economic model sustaining it is in crisis. With income sources in foreign currency declining, especially due to the reduction of international top-ups and services in MLC, ETECSA has had to redirect resources and technical staff not to advance, but to repair.

Pedro Luis Lozada Morales, director of the Southern Territorial Division, explained that even the planned investments for 2024 had to be put on hold to address the damages, further delaying the modernization of a network that is already outdated.

The quality of service remains one of the most frequent complaints among Cuban users: constant interruptions, slow browsing speeds, failures in Transfermóvil, and an infrastructure that cannot keep up with the growing number of users and data consumption.

Although ETECSA insists on its commitment to "continuous improvement" and claims to work in coordination with the Ministry of the Interior to protect its network, the reality is that the monopoly is facing an unprecedented crisis.

Without foreign currency, without investment, and under pressure, the state telecommunications giant is struggling... and with it, the connectivity of a country that is already surviving in offline mode.

Recently, telecommunications authorities in Cuba held individuals using illegal equipment, as well as social indiscipline and vandalism, responsible for the deterioration of the quality of telephone and mobile network services, amid a backdrop of severe economic and financial tensions.

According to their explanation, the use of non-certified antennas and repeaters interferes with the signal from the base stations, which directly impacts the functioning of the network in specific areas of the country.

However, starting in 2024, the company is struggling. In December, it was reported that ETECSA would increase internet rates starting in 2025 and introduce new packages and services in foreign currency.

This was announced by the Prime Minister of the Cuban regime, Manuel Marrero Cruz, during an address to the National Assembly of People's Power (ANPP), held in Havana.

Just a month later, the entity confirmed that it had developed a plan to start charging for its services in foreign currency.

In a press conference, Tania Velázquez, the executive president of the entity, revealed that earnings in foreign currency only represent 10% of total revenues, and despite this, prices have remained static, which forces the company to maintain the network and pay its international debts.

"We know that these are services for the majority to use and enjoy. However, there is a sustainability issue that is not limited to the importation of technology, but also to the payment for international connectivity capacity; if it is not paid, we fall into debt or risk legal action," he noted.

"This drives us to take actions to recover income from abroad, although these have not been effective, particularly due to the 1x24 exchange gap, as well as the frauds taking place on certain platforms that directly affect our company," he added.

Frequently Asked Questions about ETECSA and the Telecommunications Crisis in Cuba

Why can't ETECSA modernize its telecommunications network?

ETECSA cannot modernize its network due to a lack of foreign currency, which has impacted its technology investments since 2022. The company is facing an economic collapse that has decreased its revenues in foreign currency, particularly due to the decline in international top-ups and services in freely convertible currency (MLC). Furthermore, resources have been prioritized for repairs instead of progressing on technological improvements.

What factors contribute to the degradation of ETECSA's service in Cuba?

The deterioration of ETECSA's service is due to a combination of factors, such as the sustained increase in demand, the lack of foreign currency, external interference caused by illegal antennas, and acts of vandalism. Additionally, planned investments have had to be redirected to repair damages, which delays the modernization of the network. Acts of vandalism and the use of illegal equipment are significant causes of the poor service.

What measures is ETECSA taking to address its financial crisis?

ETECSA has designed a plan to implement charges for its services in foreign currency in order to attract revenue from abroad. This measure aims to sustain the network and pay international debts. The company has also announced increases in internet rates and the introduction of new packages and services in foreign currency to improve its cash flow.

How do acts of vandalism affect telecommunications infrastructure in Cuba?

Vandalism causes severe damage to telecommunications infrastructure in Cuba, including cuts to fiber optic cables, theft of batteries, and burning of poles. These incidents result in significant economic losses for ETECSA and impact service quality, leading to interruptions and slow connectivity for users.

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CiberCuba Editorial Team

A team of journalists committed to reporting on Cuban current affairs and topics of global interest. At CiberCuba, we work to deliver truthful news and critical analysis.