CubaHeadlines

ETECSA President Apologizes to Cubans but Stands Firm on Phone Rate Hike

Friday, June 6, 2025 by Ethan Navarro

Tania Velázquez Rodríguez, the executive president of Empresa de Telecomunicaciones de Cuba S.A. (ETECSA), has addressed the mounting public dissatisfaction over the recent increase in phone rates. While she offered a public apology for poor institutional communication, she remained firm on the implementation of the new pricing measures.

In a recent public appearance on the official podcast "From the Presidency," broadcast by state radio and television, Velázquez defended the new commercial policies. She warned of a potential technical collapse in the telecommunications system and justified the prioritization of foreign currency offers due to an existing "market outside Cuba."

Unveiling the New Policy

During the official intervention, attended by President Miguel Díaz-Canel and Deputy Communications Minister Ernesto Rodríguez Hernández, Velázquez acknowledged ETECSA's failure to properly communicate its intentions. She admitted that the public's displeasure is understandable given the lack of clarity and abrupt nature of the changes.

Despite this, she defended the measure as necessary to "determine the strategic objectives" of the entity in the current economic context of the country. "We needed to inform that we would be taking certain actions to establish the objectives we are explaining and expanding on today. Therefore, I must apologize to our people, as this situation generated by our system, our company, and our services compels us to do so," Velázquez stated.

Committed to Solutions

She added that ETECSA feels a strong commitment to the public and sees itself as part of the problem: "We cannot avoid this because we feel it deeply, we are sensitive to it, we are part of the problem, and of course, all ETECSA employees are committed to finding a joint, constructive, respectful, and civilized solution."

The recent decision by ETECSA adds to a long list of complaints about the poor quality of mobile and internet services, high costs, and lack of transparency regarding the use of collected revenues. Many users have taken to social media to declare that connectivity has become a luxury for a population with an average monthly salary of around 2,100 Cuban pesos.

The Justification for Rate Increases

Despite the wave of criticism, the company, which holds the exclusive right to provide telecommunications services on the island, insists it cannot function without adjusting prices due to rising technology costs, difficulties in importing parts, and the impact of the U.S. embargo.

In the same program, the executive warned that the country could face a "generalized failure" in telecommunications if necessary adjustments are not implemented. "Certain failures have been occurring in this infrastructure that point towards a path... where we have foreseen that a generalized failure might occur," Velázquez cautioned, predicting a potential collapse of the national telecommunications system.

According to her explanation, such a failure would have drastic consequences. "We might not be able to make phone calls, send messages, or reach our places of study or work..."

International Market and Dollarization

Just days earlier, during a special appearance on May 31, the executive sparked further controversy by revealing that one motivation behind the rate increase is to cater to the international market of Cubans wanting to communicate with family on the island. "For over 15 years, we have had the concept of international recharges, which have been very well utilized by a significant percentage of our customer base," Velázquez explained. "We also leverage the opportunities available to us in a market outside Cuba, which is interested in keeping their families connected."

Although she denied that ETECSA is entirely dollarized, she acknowledged that "the concept of dollarization is a necessity today, in some way, in some sectors." The new dollar-based rates, accessible only via international cards or the MiTransfer Wallet, confirm this trend.

The impact has been so significant that students at the University of Havana are holding an indefinite academic strike, demanding equitable connectivity and the resignation of the national president of the FEU, Ricardo Rodríguez González, whom they deem incapable of representing their interests.

While the government insists these criticisms are part of a "media war," viral parodies circulate online, such as that of young Alex Umur, who mocks the new informal balance resale scheme: "Juancito receives recharge from abroad, Juancito sells balance, you buy balance from Juancito... now we just need to see how much he sells it for," he commented sarcastically.

ETECSA Rate Increase: Key Questions Answered

Why did ETECSA increase phone rates?

ETECSA increased phone rates to address the rising costs of technology, import difficulties, and the impact of the U.S. embargo. The company also aims to cater to the international market of Cubans wanting to stay connected with family on the island.

What are the consequences of a potential telecommunications failure in Cuba?

A potential failure in Cuba's telecommunications system could result in an inability to make phone calls, send messages, or access essential services, leading to significant disruptions in daily life.

How is ETECSA addressing public dissatisfaction?

ETECSA has acknowledged the public's displeasure and apologized for poor communication. The company remains committed to finding joint solutions to improve services and address customer concerns.

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