The CEO of the Cuban Telecommunications Company (ETECSA), Tania Velázquez Rodríguez, disclosed on national television this Saturday that over 60% of the company's international revenue has been lost due to fraudulent activities linked to overseas recharges. This revelation comes amidst the uproar caused by the recent "tarifazo," which restricts the use of Cuban pesos for purchasing mobile data packages.
Velázquez made this urgent appearance on Cuban TV and Radio Rebelde right after the Noticiero Estelar, following a flood of criticism on social media and negative public opinion sparked by ETECSA's latest commercial decisions. These measures limit national recharges to only 360 Cuban pesos per month, forcing users to turn to packages priced in U.S. dollars (USD).
According to Velázquez, the company has been facing a "very drastic erosion" of its income over the past three to four years due to a fraudulent scheme operating from abroad that bypasses official distribution channels. "We have lost more than 60% of the income that used to come from abroad," she stated.
Velázquez explained that many users purchase recharges through unauthorized platforms, resulting in payments being withheld outside the country while balances are credited in Cuban pesos domestically. She warned that this phenomenon has significantly altered the revenue flow and contributed to the financial crisis the state-run company is currently experiencing.
Impact on Operations and Public Backlash
Velázquez emphasized that this issue has had a direct impact on the critical operational situation faced by ETECSA. The company is struggling not only with importing technology but also with unpaid debts and deteriorating services due to a lack of resources and infrastructure maintenance.
The center of the controversy is ETECSA's new pricing model, which separates domestic balances from those sourced internationally and prioritizes foreign currency usage. From now on, Transfermóvil will only allow a deposit of 360 CUP monthly, excluding Cubans without access to dollars or remittances from basic connectivity services.
For instance, the new USD plans offer 4 GB for 10 USD, 8 GB plus 75 minutes and 80 SMS for 20 USD, and 16 GB for 35 USD. In contrast, CUP packages are notably expensive, such as 3 GB for 3,360 CUP, exceeding the country's minimum wage.
Responses to Accusations of Prioritizing Foreign Currency
While Velázquez denied claims of "dollarization," she acknowledged that international recharges are vital for capturing foreign currency and that the Cuban expatriate market is a primary source for sustaining Cuba's telecommunications business.
However, amid a widespread economic crisis characterized by frequent blackouts and a crumbling infrastructure, ETECSA's decision to restrict access to essential communication services has sparked substantial backlash. Many argue that instead of pursuing inclusive and transparent solutions, the company is prioritizing foreign currency acquisition at the expense of the Cuban population.
Understanding ETECSA's Revenue Challenges and Public Reaction
What is causing ETECSA's loss of revenue?
ETECSA is losing revenue due to a fraudulent scheme operating from abroad, which results in a significant portion of international recharge payments being retained outside of Cuba.
How are ETECSA's new policies affecting Cuban citizens?
The new policies limit national recharges to 360 CUP per month, forcing citizens without access to foreign currency to face high costs for connectivity, effectively excluding them from essential services.
Why is there public backlash against ETECSA's recent decisions?
The public is reacting negatively because ETECSA's measures are seen as prioritizing foreign currency revenue over the needs of the local population, especially during an ongoing economic crisis.