The executive president of the Telecommunications Company of Cuba (ETECSA), Tania Velázquez Rodríguez, justified the recent rate hike due to the need to inject foreign currency into a debt-ridden company.
"It is necessary at this moment to take this step," he argued in his emergency intervention on national television this Saturday.
The official assured that "ETECSA's systems are in a sensitive situation. There is a need to inject foreign currency."
"Very high indebtedness"
It also warned that the state monopoly "faces very high debt."
"We are facing debts that we cannot pay, which means we cannot import more technology, we cannot import supplies, we cannot purchase from abroad the things we need to continue," he commented.
"We're not even talking about development; we're talking about sustaining the services we currently have," he added
Velázquez Rodríguez stated that the decision regarding the rate increase has been carefully studied and was not made on a whim, and that ETECSA's loss of revenue affects "the country's total income."
Poor network quality
He also justified the rate hike as a necessary step to modernize the services of his company.
"People are noticing a decline in service quality. In some places, the connection disappears completely," he said.
According to the official, companies like the one she manages "require ongoing investments."
Denies censorship and limitation of access
The regime official also denied that the rate hike is an attempt to limit Cubans' access to the internet.
"For us, it remains a priority to continue developing internet access," he said.
He also proudly stated that in recent years, ETECSA has expanded internet access, overlooking the fact that social media has been essential in the social protests of recent years.
"Over the past few years, there has been a very clear policy to advance internet access, to advance information technologies, and to advance digital transformation projects. (...) Several million-dollar investments have been made that have allowed for the expansion of internet access to Cubans since 2015," he stated.
"In 2019, we began with 4G in some areas of the country, and 4G expanded specifically due to the needs arising from COVID. We had to provide more communication," he added.
Price hike in telecommunications
The new measures imposed by ETECSA's communication monopoly have caused immediate rejection among the Cuban population, who have witnessed how access to the internet and mobile telephony has become increasingly expensive and inaccessible.
Many users on social media described the measures as a “armed robbery”, reporting that the new plans in CUP even exceed the monthly minimum wage on the island.
A 15 GB plan costs 11,760 CUP, while national top-ups in the local currency are limited to 360 CUP every 30 days. At the same time, packages priced at 10, 20, and 35 USD are being promoted, an alternative only feasible for those who receive remittances or have access to foreign currency.
Criticism has multiplied, accusing ETECSA of perpetuating inequality through a "caste communication" system, where only those receiving assistance from abroad can stay connected. “They control your money and open their mouths to dollars, hypocrites,” wrote an outraged user on social media.
Frequently asked questions about the ETECSA rate increase in Cuba
Why has ETECSA decided to implement a rate hike on its services?
The president of ETECSA, Tania Velázquez, justified the rate hike due to the need to inject foreign currency into the company, which is facing high debts. The measure aims to maintain current services and respond to a market outside of Cuba interested in communicating with their relatives. Although the rates in Cuban pesos (CUP) remain the same, the new plans in dollars are seen as a necessity for the sustainability of ETECSA.
How does ETECSA's rate hike affect internet access in Cuba?
The ETECSA rate hike has severely restricted the use of the Cuban peso for mobile recharges, imposing a maximum of 360 CUP per month and promoting packages in dollars. This has made access to the Internet and mobile phone services increasingly expensive and inaccessible for the population that does not receive remittances, deepening economic inequality and limiting connectivity for a large portion of Cubans.
Is ETECSA's rate hike a step towards the dollarization of services in Cuba?
Although the president of ETECSA denies that the rate hike is a process of dollarization, she has admitted that the concept of dollarization is a necessity in certain sectors. The new dollar plans are designed to attract foreign currency, targeting the market of expatriate Cubans who wish to keep their families connected. This has led to criticism for perpetuating inequality through a communication system based on social stratification.
How has the Cuban population reacted to ETECSA's rate hike?
The Cuban population has reacted with outrage to ETECSA's rate hike, viewing the measures as "armed robbery" that excludes those without access to foreign currency. Social media has become a platform for criticism and mockery of the state company, with memes and satirical messages capturing the widespread frustration over rising prices and the precarious connectivity on the island.
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