In an episode of the podcast "The Economy Has a Name," broadcast by Radio Sancti Spíritus, the economist Frank Rafael Quesada Espinoza candidly acknowledged that the state and only Telecommunications Company of Cuba S.A. (Etecsa) operates as a monopoly in the Cuban economy.
This is a statement that until recently would have been unthinkable in official media, which are accustomed to silencing or justifying this type of absolute control.
The topic was presented as a "doubt" raised by the audience regarding the use of the term "monopoly" in a socialist system, which allowed the economist to address the concept from its etymology to its application in Cuba, openly acknowledging that "Etecsa is a monopoly" and that the Cuban state similarly controls other sectors.
During the program, posted on the Youtube channel of Radio Sancti Spíritus, and hosted by the state journalist Elsa Ramos, the expert attempted to clarify the seriousness of the issue, distinguishing between the monopolies of capitalism — driven by private profit — and those of socialism, which he argued should serve a collective interest.
“Are there good and bad monopolies?” Ramos asked, adding, “by that term in Cuba, not only Etecsa has a monopoly, the Cuban state has a monopoly on several sectors.”
Indeed, that was one of the traits of that “real socialism”, the economist subsequently pointed out, referring to the authoritarian political regimes in the former Soviet Union and Eastern European countries, which collapsed in the late 1980s and early 1990s.
The program also suggested that other industries, such as pharmaceuticals, operate under monopolistic schemes, with the state controlling both production and sales, which, according to the expert himself, "cannot be said to be bad when it has saved the lives of so many people."
Rather than questioning the lack of competition, poor service, or the exorbitant prices faced by Cubans, the discourse focused on justifying the existence of monopolies as "necessary structures" under conditions of blockade or scarcity, even comparing the Cuban case to models in countries like China and Vietnam.
However, the broadcast acknowledged that in the current Cuban context, the results of these monopolies have been negative, undermining the sense of collective ownership and creating a detachment between citizens and the goods that, in theory, belong to everyone.
Despite the attempt to show neutrality, the closure of the space made a critical conclusion clear: state monopolies in Cuba have proven neither effective nor efficient.
Although the program avoided stating it directly, it acknowledged that the economic results of the exhausted Cuban model, sustained by these structures, have been inadequate for over six decades.
The novelty is not that ETECSA is a monopoly - that is something all Cubans who endure its fees and poor service are well aware of - but that the official press now acknowledges it openly. However, this is done without providing answers, without admitting responsibility, and without proposing concrete changes.
The state monopoly on telecommunications on the island justified the recent price hike with the need to maintain submarine cables, base stations, and millions of mobile lines, but at the same time, it avoids the debate on quality, real access, and affordability.
The phrase "maintaining the connection" rings hollow to a population that pays dearly for a limited service.
The rates do not match the average income of the population, and a significant portion of users relies on top-ups sent from abroad to stay connected.
The Cuban Prime Minister, Manuel Marrero Cruz, reported to parliament in mid-July that in just 46 days, following the implementation of the tariff increase in telecommunications services, ETECSA had collected more than 24.8 million US dollars, which is an average of 540,000 dollars per day.
This Wednesday, Etecsa announced a new international recharge promotion that raises the minimum to 600 CUP, which sparked immediate backlash among Cuban users on social media.
The official narrative, however, has been questioned by independent analysts, who point out that it serves as a cover for the progressive dollarization of the service and the political use of telecommunications.
Additionally, the company itself revealed a sharp decline in mobile line revenue, dropping from 133 dollars annually in 2018 to just 31 in 2024, which highlights a loss of competitiveness that has not resulted in real improvements for users.
Despite the figures, there has been no clear explanation of the destination of those funds, nor have there been any noticeable investments in infrastructure or service quality.
Recent revelations from the newspaper El Nuevo Herald have highlighted how the monopolistic conditions under which the Business Administration Group S.A. (GAESA), the conglomerate of the Cuban military elite, have allowed it to accumulate billions of dollars while the Cuban people are deprived of food, medicine, and electricity.”
The research showed that GAESA operates as a parallel economic structure to the State, with dozens of companies organized under different legal forms—from state enterprises to international economic associations and small and medium-sized enterprises (SMEs)— many of which operate off the public radar and without transparency.
Frequently Asked Questions about the ETECSA Monopoly and the Rate Hike in Cuba
Why is ETECSA considered a monopoly in Cuba?
ETECSA is considered a monopoly because it is the only telecommunications company in Cuba, controlled by the State. This absolute control means that there is no competition in the sector, resulting in high rates and poor service, as evidenced by recent complaints about the price hike. The lack of competition limits options for consumers and perpetuates a system where the State maintains total control over communications.
What are the main criticisms of ETECSA’s rate hike?
The main criticisms of ETECSA's rate hike focus on the fact that the new rates are prohibitively high and unaffordable for most Cubans. The plans in Cuban pesos (CUP) are limited and expensive, while packages in dollars are promoted, which are only accessible to those who receive remittances or have access to foreign currency. This has generated significant outrage, as it is seen as a form of digital exclusion and economic inequality.
How does ETECSA's rate hike affect the Cuban population?
The price hike from ETECSA impacts the Cuban population by severely limiting access to the internet and mobile telephony. The rates in CUP are extremely high in relation to the average salary, forcing many to rely on international top-ups. This not only restricts access to communication and information but also exacerbates social inequalities, as only those with access to dollars can stay connected.
What role does the Cuban government play in the control of ETECSA?
The Cuban government controls ETECSA through a state and military structure that includes entities such as RAFIN S.A., linked to the Armed Forces. This allows the State to manage ETECSA's revenues without transparency or accountability, prioritizing foreign currency acquisition over improving services for citizens. This control structure reinforces the monopoly and limits the possibility of implementing reforms that benefit the public.
What impact does the dollarization of ETECSA services have on Cuban society?
The dollarization of ETECSA's services imposes an economic barrier that seriously affects Cuban society. By offering data packages in dollars, it excludes those who do not have access to foreign currency, creating a digital divide that limits access to communication, education, and information. This measure reinforces inequality and highlights the Cuban economy's dependence on remittances and income from abroad.
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