The Cuban Prime Minister, Manuel Marrero Cruz, informed the Parliament this Wednesday that in just 46 days, after the implementation of the tariff increase in telecommunications services, ETECSA has collected over 24 million 839 thousand U.S. dollars, which amounts to an average of 540 thousand dollars per day.
During the Fifth Ordinary Session of the National Assembly of People's Power, Marrero acknowledged that the manner in which the implementation of the measure and its political-communication strategy caused dissatisfaction among the populace, although he stated that these have been “addressed”.
The Prime Minister assured that the revenues obtained will be used for the gradual recovery of the infrastructure in the sector. He also noted that telecommunications service exports grew by 3.6% during the same period.
Although Marrero flaunted this "achievement" before the National Assembly, the reality is that if ETECSA maintains its current collection rate — 24 million dollars in 46 days — the annual projection would be around 190.4 million dollars, a figure lower than the more than 200 million that, according to previous estimates, the company was earning before the rate hike.
This suggests that, rather than representing progress, the increase in prices could be resulting in lower returns, despite the additional cost imposed on citizens and especially on the diaspora, which launched a campaign to stop funding the regime.
During the same parliamentary session, the Government also discussed the progress of its monetary and exchange policy, highlighting that the implementation of a partial dollarization process in certain sectors of the economy is moving forward.
Among the measures underway, the approval of self-financing schemes in foreign currency was mentioned, along with the use of prepaid cards for legal entities, charging foreign companies in dollars, and accepting cash in foreign currency for selected activities.
Producers in the agricultural sector who replace imports and those involved in exportable goods are also being paid in freely convertible currency.
According to Marrero, the conditions have already been established to implement a new mechanism for managing, controlling, and allocating foreign currency, based on resolutions from the Ministry of Economy and Planning (MEP) and the Central Bank of Cuba (BCC), as well as a political-communication strategy and a training schedule aimed at the involved parties.
The price increase by ETECSA has been strongly criticized by citizens, who claim that the cost of services is disproportionate to salaries and the quality of the offerings.
Despite social rejection, the Government defends the revenues generated as a key source to maintain the sector's infrastructure and expand financing capabilities in foreign currency amid a context of profound economic crisis.
Frequently Asked Questions about ETECSA's Rate Hike and Its Impact on Cuba
How much has ETECSA raised after the tariff increase, and how will those funds be used?
ETECSA has raised more than 24 million dollars in 46 days following the implementation of the rate hike in its telecommunications services. According to Prime Minister Manuel Marrero, these revenues will be allocated to the gradual recovery of the sector's infrastructure, although specific plans and timelines for these improvements have not been detailed. The lack of transparency regarding the use of these funds has generated distrust among the population.
Why did ETECSA decide to increase its rates so drastically?
The Cuban government maintains that the increase in rates is necessary to attract foreign currency and ensure the sustainability of telecommunications in the context of an economic crisis. ETECSA has justified the measure as a response to the loss of revenue due to fraud in international top-ups. However, the lack of public investigations and the opacity in the management of the company have raised criticisms regarding the true intention behind the rate hike.
What measures have been taken to mitigate the impact of the tariff increase on the population?
The Prime Minister Manuel Marrero announced adjustments to the rate increase to reduce its impact on specific sectors, especially among students. However, specific measures and their implementation timeline have not been detailed. Meanwhile, social discontent is growing due to the perception that the rates are disproportionate in comparison to salaries and the cost of living in Cuba.
How does the rate hike affect users who do not have access to dollars?
The rate hike imposes a limit on top-ups in Cuban pesos at 360 CUP per month, forcing users to purchase packages in dollars to obtain more data. This directly affects those who do not receive remittances or do not have access to freely convertible currency, exacerbating economic inequality and limiting connectivity access for a large portion of the population that is already facing economic hardships.
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