Tania Velázquez Rodríguez, the CEO of Cuba's Telecommunications Company (ETECSA), has defended the recent price increase, citing the urgent need to inject foreign currency into the cash-strapped enterprise. "This step is necessary at this time," she asserted during an emergency address on national television this past Saturday.
According to Velázquez Rodríguez, ETECSA's systems are in a precarious state, necessitating a foreign currency boost. She emphasized that the state-run monopoly is grappling with a "very high level of debt."
Mounting Debt and Operational Challenges
"We are facing debts that we cannot repay, which means we cannot import more technology or essential supplies. This incapacity hinders our ability to maintain current services," she explained. "This isn't even about progress; it's about sustaining what we have." Velázquez Rodríguez assured that the decision to increase prices was thoroughly considered and not made on a whim, highlighting how ETECSA's declining revenue affects "the country's total income."
Poor Network Quality and Need for Modernization
The executive also justified the price hike as a necessary move to modernize services. "People perceive a decline in service quality. In some areas, the connection disappears entirely," she noted. For Velázquez Rodríguez, companies like ETECSA need "ongoing investments."
Denial of Censorship and Internet Access Restrictions
She denied that the price hike aims to restrict Cubans' internet access. "Continuing to develop internet access remains a priority for us," she insisted. Velázquez Rodríguez also boasted about ETECSA's efforts to expand internet access over the years, neglecting to mention how social media has played a pivotal role in recent social protests. "In recent years, there has been a clear policy to advance internet access, information technologies, and digital transformation projects. Multiple investments have been made to expand internet access for Cubans since 2015," she declared.
"In 2019, we began with 4G in certain areas of the country, which expanded further due to COVID-19 needs. More communication was necessary," she added.
Public Backlash to the Telecom Price Increase
The new policies enforced by ETECSA's monopoly have sparked immediate backlash among Cubans, who now find internet and mobile phone services increasingly costly and inaccessible. Many social media users have labeled the measures as "daylight robbery," pointing out that the new plans in CUP even exceed the island's minimum monthly wage. A 15 GB plan costs 11,760 CUP, while national recharges are limited to 360 CUP every 30 days. Simultaneously, dollar-denominated packages are offered at 10, 20, and 35 USD, an option only feasible for those receiving remittances or with access to foreign currency.
The criticism has intensified, accusing ETECSA of perpetuating inequality through a "caste communication system," where only those with foreign financial support can remain connected. "They control your money but welcome dollars with open arms, hypocrites," an infuriated user commented on social media.
ETECSA's Price Hike: Public Reactions and Implications
Why did ETECSA increase its prices?
The CEO of ETECSA, Tania Velázquez Rodríguez, stated that the price increase is necessary to inject foreign currency into the company due to its high level of debt and the need to maintain current services.
How has the Cuban public reacted to ETECSA's price hike?
The new pricing measures have been met with significant backlash, with many Cubans describing them as unaffordable and labeling them as "daylight robbery," as they often exceed the minimum monthly salary in Cuba.
What are the implications of the price hike for internet access in Cuba?
The price hike is seen as perpetuating inequality, where only those receiving foreign financial support can afford to stay connected, creating a "caste communication system."