The Cuban Telecommunications Company, ETECSA, is set to raise internet rates starting in 2025, alongside introducing new service packages in foreign currency. This was announced by the Cuban regime's Prime Minister, Manuel Marrero Cruz, during his address to the National Assembly of People's Power held in Havana this week. Marrero explained that the initiative aims to secure much-needed foreign currency amidst the severe economic crisis gripping the country.
According to the senior Cuban official, the introduction of internet packages priced in the national currency has led to a decline in the popularity of dollar-based offers. In response, national currency rates will be adjusted with a consumption limit. "From that point, anyone wishing to exceed this limit will have to pay a different price," commented the Cuban Prime Minister, whose remarks have sparked widespread criticism on social media.
New Strategies to Attract Foreign Currency
Among the measures outlined by Marrero is the implementation of roaming charges in foreign currency and the creation of new packages with additional services, aimed at boosting dollar inflow into the country. “A series of packages will be developed to encourage foreign currency entry, featuring additional services currently not offered. This will facilitate revenue generation,” Marrero emphasized. However, he refrained from providing specific details on the pricing of these new packages or the precise timeline for their introduction.
Understanding the Economic Crisis Context
During his address, Marrero also reviewed the outcomes of the so-called "paquetazo," a collection of economic measures intended to tackle the crisis, which have fallen short of expectations. "We are dissatisfied with the lack of necessary progress, especially in areas demanded by our population," acknowledged the official.
The announcement of ETECSA's new rates and services emerges against the backdrop of an economic downturn, characterized by a severe liquidity shortage and a drop in foreign currency revenue. For over a decade, the state-run company has been a vital channel for attracting dollars through international recharges, a lucrative business supporting a portion of the national economy.
Internet Service Challenges and Statistics in Cuba
Despite economic challenges and poor service quality, official statistics indicate that the average monthly internet consumption in Cuba is 9.9 GB per user. Nevertheless, the high cost of packages relative to the average income of the population remains a barrier for many Cubans. With these new measures, the regime seeks to bolster ETECSA's capacity to generate foreign currency revenue, as part of an attempt to alleviate the economic crisis, though it may result in higher costs for users amid growing economic hardship.
Is Cuban Internet Really the "Cheapest" in the Caribbean?
In May of this year, amidst the rising inflation and the ongoing devaluation of the Cuban peso (CUP), Cuba's communication monopoly, ETECSA, claimed that its internet service is the cheapest in the Caribbean. According to Lidia Esther Hidalgo Rodríguez, the company's vice president of commerce, this assertion is based on informal exchange rate parameters: "One gigabyte of mobile data equates to $0.17," she stated to the official Granma newspaper. This alleged "lowest correlation in the Caribbean" is both laughable and contentious, considering that 88% of Cubans live below the poverty line and the country's minimum wage is approximately 2,100 CUP per month, or around six dollars (according to the informal exchange rate), falling below extreme poverty thresholds (defined by the World Bank as $2.15 in total daily income).
With 7.8 million mobile users, of which 7.3 million are enabled for internet use as the sole telecommunications provider in the country, ETECSA offers 54,000 business services with an average bandwidth of 6 Mbps and is “working to develop and improve electronic payment platforms.”
FAQs on Cuba's Internet Price Increase and Economic Impact
Why is ETECSA raising internet prices?
ETECSA is raising internet prices to generate more foreign currency revenue, as the country faces a severe economic crisis and a shortage of liquidity.
What changes will be made to internet packages in Cuba?
New internet packages will be introduced, featuring additional services and priced in foreign currency to attract dollar inflow. National currency packages will have consumption limits.
How does the cost of Cuban internet compare to the Caribbean?
ETECSA claims its internet service is the cheapest in the Caribbean, based on informal exchange rates, but this is controversial given the high poverty levels in Cuba.