In Cuba, mounting economic challenges are exacerbated by the state telecommunications company, ETECSA, which has launched new international recharge offers that reveal a stark disparity between official and informal currency valuations. Despite the state’s pricing structure valuing the dollar at less than 25 Cuban pesos (CUP), the unofficial exchange rate exceeds 375 CUP, highlighting significant implications for both emigrants and local users relying on remittances.
Recently, ETECSA’s promotional initiatives coincided with Father’s Day celebrations, running from June 9 to June 15. These campaigns offered data packages that included between 25 and 125 GB of internet access, with a specific provision for unlimited usage from midnight to 7:00 a.m. However, a closer examination of these financial offerings reveals an alarming economic gap. For instance, a recharge priced at €21.45 delivers merely 500 CUP, suggesting an exchange rate of only 23.3 CUP per euro. In a similar discrepancy, a recharge of €107.15 yields 2,500 CUP, maintaining the same equivalent. Notably, a “premium” promotion lets customers recharge 1,500 CUP for $65.99, resulting in an exchange rate of just 22.7 CUP to the dollar.
In stark contrast, as of June 9, current exchange rates in the unofficial market stand at USD = 375 CUP, EUR = 400 CUP, and MLC (Moneda Libremente Convertible, or freely convertible currency) at 262.5 CUP. This situation illustrates that ETECSA’s recharges provide users less than 7% of the actual value for funds transferred from abroad, effectively instituting what many are calling economic exploitation.
Such strategies have generated significant backlash on social media platforms, where users have voiced their grievances. Many express that these charges constitute not just economic injustices but a form of emotional manipulation, especially during a time that traditionally holds sentimental value. One observer noted, “In Cuba, that offer would cost about 5,000 CUP, which at the informal exchange rate would be around 12.5 USD. But ETECSA charges 22 USD abroad. Where’s the profit?” Such sentiments underscore the growing discontent among the populace, particularly against a backdrop where most Cubans survive on salaries that barely afford basic necessities.
This economic discontent is symptomatic of a deeper issue: the Cuban peso’s shift away from being a reliable currency. Officially, the Cuban government has admitted that average monthly salaries translate to approximately $16 when measured against the informal exchange rate. In practice, ETECSA continues to apply fictitious exchange rates that favor its profit margins over market realities, a strategy that both augments the Cuban state’s foreign currency reserves and diminishes the purchasing power of domestic consumers.
Critics assert that this manipulation allows the government to maximize revenues at the expense of efficiency and equity in the economy. ETECSA’s approach to international top-ups is viewed less as a service and more as a tool for institutional exploitation, effectively taking advantage of a disenfranchised population while benefitting from funds sent overseas by relatives and friends eager to stay connected.
During a recent broadcast of the Mesa Redonda program, ETECSA’s executive president, Tania Velázquez Rodríguez, acknowledged a significant decline in the average income per mobile line in Cuba, plummeting from $133 in 2018 to just $31 by 2024. Velázquez Rodríguez attributed this downturn to issues of fraud within the system, seeming to overlook fundamental flaws that stem from a dual economy plagued by inadequate exchange rates and a lack of transparency surrounding ETECSA’s finances.
Moreover, the recent uptick in ETECSA’s prices has drawn ire from various sectors, particularly university students who have reported severe consequences of digital exclusion and isolation directly linked to the company’s pricing hikes. The policy changes instituted on May 30 have not only strained individual finances but have also widened digital divides, curtailing access to necessary online resources and communication platforms.
As these developments unfold, ETECSA’s international top-ups are increasingly perceived as a form of institutional abuse rather than a viable business strategy. The company has effectively transformed a fundamental need—connectivity—into an opaque financial scheme that capitalizes on the challenges faced by the Cuban populace, imposing unreasonable costs and perpetuating an already beleaguered economic environment.
In the broader context, this scenario serves as a poignant illustration of the hardships faced by Cubans caught in a system characterized by economic mismanagement and a lack of accountability. As ETECSA navigates this tumultuous landscape, it remains to be seen whether the government will acknowledge the fundamental issues at play and make meaningful adjustments to its policies or continue along a path that exacerbates the struggles of the very citizens it claims to serve.
As the situation develops, it highlights the need for a re-evaluation of not only ETECSA’s pricing strategies but also the overall economic framework within Cuba, especially if the country hopes to create a more equitable and transparent system for its citizens. The urgency of reform has never been clearer, and how Cuban authorities address these challenges will undoubtedly have lasting implications for the nation’s social fabric and economic stability.