In a recent episode of the podcast "Economics Has a Name" aired by Radio Sancti Spíritus, economist Frank Rafael Quesada Espinoza openly acknowledged that the Cuban state-run Empresa de Telecomunicaciones de Cuba S.A. (ETECSA) functions as a monopoly within the nation's economy. Such a candid admission would have been unthinkable in official media channels not long ago, as these platforms traditionally either silence or justify absolute control of this nature.
The discussion emerged as a "question" from the audience, regarding the use of the term "monopoly" within a socialist framework. This allowed the economist to explain the concept from its etymological roots to its current application in Cuba, explicitly stating that "ETECSA is a monopoly," while also recognizing the Cuban state's similar control over other sectors.
Monopolies: A Socialist Perspective
The podcast, available on Radio Sancti Spíritus's YouTube channel and hosted by official journalist Elsa Ramos, saw the expert attempt to soften the implications by distinguishing between capitalist monopolies—driven by private profit—and socialist ones, which, according to him, should serve collective interests.
“Are there good and bad monopolies?” asked Ramos, noting that "in Cuba, not just ETECSA holds a monopoly; the Cuban state monopolizes several branches." The economist then referenced "real socialism," pointing to authoritarian political regimes in the former Soviet Union and Eastern Europe, which collapsed in the late 1980s and early 1990s.
The program also discussed how other industries, such as pharmaceuticals, operate under monopolistic frameworks with state control over both production and sales. The expert claimed this is not inherently negative when it has saved lives. However, the discussion overlooked issues like lack of competition, poor services, and high prices that burden Cubans. Instead, the narrative justified monopolies as "necessary structures" in conditions of blockade or scarcity, even comparing Cuba's situation to models in China and Vietnam.
The Reality of State Monopolies in Cuba
Despite efforts to maintain neutrality, the broadcast concluded with a critical observation: Cuban state monopolies have failed to prove effective or efficient. Although the program stopped short of saying it directly, it acknowledged that the economic outcomes of Cuba's outdated model, sustained by these structures, have been inadequate for over six decades.
It's not news to Cubans that ETECSA is a monopoly—they have long endured its high fees and poor service—but it's now being openly stated by state media. Yet, no solutions, accountability, or concrete changes were proposed. ETECSA justified its recent price hike by citing the need to maintain undersea cables, radio bases, and millions of mobile lines, while sidestepping discussions on service quality, real access, and affordability.
The narrative of "maintaining connectivity" rings hollow to a population that pays dearly for limited service. The tariffs are misaligned with the average income, forcing many users to rely on overseas top-ups to stay connected. In mid-July, Cuban Prime Minister Manuel Marrero Cruz reported to parliament that ETECSA amassed over $24.8 million in just 46 days following the telecom service price hike, averaging $540,000 daily.
Economic Impact and Public Reaction
On Wednesday, ETECSA announced a new international recharge promotion raising the minimum to 600 CUP, sparking immediate backlash on social media. Independent analysts have criticized the official narrative as a cover for the progressive dollarization of services and the political use of telecommunications.
ETECSA itself revealed a sharp decline in revenue per mobile line, dropping from $133 annually in 2018 to just $31 in 2024, highlighting a loss of competitiveness that hasn't translated into real improvements for consumers. Despite the figures, there has been no clear explanation of where these funds are going, nor have there been visible investments in infrastructure or service quality.
Recent revelations by El Nuevo Herald highlighted how the monopoly conditions under which Grupo de Administración Empresarial S.A. (GAESA), a conglomerate of the Cuban military elite, operates have enabled it to accumulate billions while ordinary Cubans lack food, medicine, and electricity. The investigation showed that GAESA functions as a parallel economic structure to the state, with numerous companies organized under various legal forms—from state enterprises to international economic associations and small and medium-sized enterprises—many operating beyond public scrutiny and without transparency.
Understanding ETECSA's Monopoly in Cuba
Why is ETECSA considered a monopoly?
ETECSA is considered a monopoly because it is the sole telecommunications provider in Cuba, controlling all aspects of the industry without competition, leading to high prices and poor service quality.
How has ETECSA's monopoly impacted Cuban citizens?
ETECSA's monopoly has resulted in high telecommunications costs that are disproportionate to the average Cuban income, leading many to rely on international top-ups. The lack of competition also contributes to subpar service quality.
What are the criticisms of state monopolies in Cuba?
State monopolies in Cuba are criticized for their inefficiency and ineffectiveness, as they have not improved the economic outcomes for over six decades. They also weaken the sense of collective ownership among citizens.