The head of Cuba's Telecommunications Company (ETECSA), Tania Velázquez Rodríguez, openly acknowledged that the operational sustainability of telecom services on the island is heavily reliant on funds from Cuban emigrants through international top-ups. Speaking on the state-run program Mesa Redonda, Velázquez detailed how these revenues are crucial for financing everything from technology procurement to connectivity for state institutions.
She highlighted that international top-ups have been in place for over 15 years, constituting 80% of the company's international income. Although common worldwide, in Cuba, this practice has become essential. "These services, which consume high capacities today... require us to find sources for their recovery," she noted.
This financial mechanism has enabled ETECSA to fund connectivity projects, maintain public telephone networks, and pay suppliers. Nonetheless, this economic dependency occurs amid accusations against ETECSA for collaborating with the regime's repressive measures. The company has been known to cut internet access during protests, censor media, and track citizens' online activity, leading to fines or threats.
Ironically, funds sent by Cuban exiles, often opponents of the regime, inadvertently support censorship and control. Velázquez mentioned that during the COVID-19 period, an increase in top-ups facilitated structural projects, allowing ETECSA to sustain services and plan new investments.
However, this projection is no longer sustainable. According to Velázquez, a "turning point" occurred in 2021 when unofficial platforms emerged, offering top-ups from countries like Spain and the U.S., but redirecting the money into Cuban pesos within the country. "That money stays there, never reaching the company," she stated, noting the impact on revenues despite growing internet traffic.
While traffic surged, expenses increased, yet official income channels did not reflect this, revealing the monopoly's liquidity issues and desperation to fill its coffers. The strategy remains focused on external financing, devoid of transparency or quality service guarantees.
Meanwhile, ETECSA continues to be a tool for regime control over information and citizens. Those sending money from abroad, hoping to assist family, are also, knowingly or unknowingly, fueling a system that limits rights and freedoms on the island.
ETECSA's recent price hikes have sparked significant backlash among Cubans abroad, who argue that the new policy restricts internet access in Cuba and imposes a financial burden on emigrants, who have become the economic backbone of the system.
From the United States, user @anay.armenteros.a, known as "La Bandida," expressed her frustration in a video, highlighting the emotional and financial strain of the measure. "They pressure us more because the government wants dollars at all costs, wants to live off us, those of us here," she said.
Many see this move as social exclusion and economic blackmail, drawing strong criticism from residents on the island. "I refuse to let them put a single peso in my name to ETECSA. I don't want top-ups. I want ETECSA to starve, even if I never use a cell phone again," said lawyer Manuel Viera on Facebook.
ETECSA's new tariffs have faced widespread scrutiny on social media, especially from young people and students who claim the prices are disproportionate to the country's average low income. To appease critics, the regime announced that university students could purchase an additional 6 GB mobile data package each month for 720 CUP, doubling their current allocation.
Nevertheless, on June 3rd, the Federation of University Students (FEU) and the Union of Young Communists (UJC) from the José Antonio Echeverría University of Technology in Havana strongly condemned these new ETECSA policies. In a joint statement, they demanded more respectful solutions for the people from ETECSA.
In the midst of these mounting criticisms, an investigative report revealed a fact that contradicts the official narrative of the Cuban state telecom monopoly, which claims financial insolvency to justify drastic tariff increases. According to the Miami Herald, RAFIN S.A., a major shareholder controlled by the Cuban military, possessed over $407 million in cash as of August 2024.
Understanding ETECSA's Economic Challenges
Why is ETECSA so dependent on international top-ups?
ETECSA relies on international top-ups because they account for 80% of its international revenues. These funds are crucial for maintaining its operations, acquiring technology, and ensuring connectivity for state institutions.
How have unofficial platforms affected ETECSA's revenues?
Unofficial platforms offering top-ups from abroad have diverted funds intended for ETECSA by converting them into Cuban pesos domestically, preventing the company from receiving these revenues.
What are the criticisms against ETECSA's recent price hikes?
Critics argue that the price hikes restrict internet access and place a financial burden on emigrants who support their families in Cuba, effectively making them economic sustainers of the system.