The Cuban Prime Minister, Manuel Marrero Cruz, revealed to the Parliament on Wednesday that in just 46 days after hiking telecommunications rates, ETECSA has amassed over $24.839 million USD. This breaks down to an average of $540,000 daily. During the Fifth Ordinary Session of the National Assembly of People's Power, Marrero acknowledged that the rollout of this measure, along with its political-communication strategy, sparked dissatisfaction among the population. However, he claimed these concerns have been "addressed."
The Prime Minister stated that the revenues collected will be allocated towards the gradual restoration of the sector's infrastructure. He also noted a 3.6% growth in telecommunications service exports during the same timeframe.
While Marrero boasted of this "achievement" before the National Assembly, the reality is stark. If ETECSA continues its current revenue pace—$24 million in 46 days—the annual projection would be around $190.4 million, falling short of the over $200 million the company previously earned before the rate hike. This suggests that rather than progress, the price increase might be yielding less profit, despite the additional burden on citizens, particularly the diaspora, which has initiated a campaign to stop funding the regime.
In the same parliamentary session, the government also discussed its monetary and exchange rate policies, highlighting the ongoing implementation of a partial dollarization process in specific economic sectors. Among the initiatives underway are the approval of foreign currency self-financing schemes, the use of prepaid cards for legal entities, charging foreign companies in dollars, and accepting foreign currency cash in selected activities.
Additionally, payments in freely convertible currency are being made to agricultural producers who replace imports and those linked to exportable goods. According to Marrero, conditions are now in place to launch a new mechanism for the management, control, and allocation of foreign currency, supported by resolutions from the Ministry of Economy and Planning (MEP) and the Central Bank of Cuba (BCC), along with a political-communication strategy and a training schedule for involved parties.
The price increase from ETECSA has been heavily criticized by citizens, who argue that service costs do not align with wages or service quality. Despite public backlash, the government defends the generated revenue as a crucial source for sustaining sector infrastructure and expanding foreign currency financing capabilities amid a deep economic crisis.
FAQs on ETECSA's Revenue and Economic Impact
How much revenue has ETECSA generated after the rate increase?
ETECSA has generated over $24.839 million USD in just 46 days after the rate increase.
What is the government's response to public dissatisfaction with the rate increase?
The government claims that the concerns from the public have been addressed and defends the revenue as crucial for infrastructure maintenance and economic stability.
What economic measures is the Cuban government implementing alongside the rate increase?
The government is implementing a partial dollarization process, approving foreign currency self-financing schemes, and accepting foreign currency cash in selected activities, among other measures.