ETCSA Refutes Claims of Dollarization: "Rates Remain in Cuban Pesos"

The head of Cuba's Telecommunications Company (ETECSA), Tania Velázquez, has dismissed allegations that the recent changes restricting Internet access in local currency are part of a dollarization process. During a segment on the government-backed Mesa Redonda, where ETECSA officials addressed the so-called "rate hike," Velázquez stated on Friday, "There is no dollarization of services."

In a discussion with spokesperson Randy Alonso Falcón, Velázquez clarified that the rates continue to be in Cuban Pesos (CUP) and explained that they are "regulated by official resolutions." While she did not mention the new recharge amounts for additional data plans needed once the 360 CUP package is exhausted, she emphasized that international recharges have been available for 15 years "for Cubans abroad who wish to support their families."

However, she acknowledged the necessity of understanding "the concept of dollarization" in certain sectors. "We also take advantage of opportunities that we can access today. There is a market outside Cuba that is interested in keeping their families connected, and we obviously offer our services for that. But the rates in CUP remain as they have been established," she commented.

ETECSA has experienced a decline in foreign currency revenue, prompting efforts to find ways to collect dollars. "Internet traffic has nearly quadrupled. Seventy-five percent of internet traffic in Cuba relies on mobile services. Consumption patterns have shifted in recent years toward streaming and gaming platforms, which is a normal behavior," she noted. Later, she admitted the need for foreign currency despite the internal use of CUP for payment. "Revenue in foreign currency, which sustains the services, has decreased. Since December, measures have been announced to recover ETECSA's exports."

She concluded, "There is a constant need for spending in foreign currency to maintain services," during the Mesa Redonda discussion. While the use of CUP is restricted, ETECSA is promoting new Extra Data Plans in USD, now available via international cards and Monedero MiTransfer. These plans can be purchased at authorized commercial offices and offer 4 GB for $10 USD; 8 GB + 75 MIN + 80 SMS for $20 USD and 16 GB for $35 USD.

In CUP, the Extra Data Plans exceed the basic and average Cuban salary: 3 GB costs 3,360 CUP; 7 GB costs 6,720 CUP, and 15 GB costs 11,760 CUP.

Was It Improvised?

Lidia Esther Hidalgo Rodríguez, the Vice President of ETECSA's Commercial Division, assured that the measures were based on an "extensive study" of the population's consumption patterns. She also confirmed that over 50% of the population consumes approximately 6 GB, and the extra data plans were designed for those who exceed this average. The communications monopoly's officials praised that despite the 6 GB limit for 360 Cuban Pesos in national recharges, platforms like WhatsApp or Telegram allow for "efficient data usage."

"With just 1 GB, you can send up to a million text messages, thus maintaining active communication," she said, without mentioning the cost of video calls, one of the most popular methods for Cubans to communicate with emigrated relatives.