ETECSA Faces Financial Crisis: Admits Lack of Funds for Network Upgrades

Amid the widespread economic collapse impacting every sector in Cuba, the state-controlled telecommunications monopoly, ETECSA, has publicly acknowledged its lack of foreign currency reserves needed to sustain the technological investments it maintained up until 2022. This admission came from Kevin Castro Rodríguez, Deputy Director of the Network Operations Vice Presidency, during an interview with the official portal, Cubavisión Internacional.

“Our foreign currency income sources have been severely affected. What does that mean? It has become exceedingly challenging to continue with the investment plan we carried out until 2022,” stated Castro, confirming what millions of users endure daily: a network that is increasingly congested, slow, and unstable.

The executive attributed connectivity issues — in both landline and mobile internet services — to several factors: a steady increase in demand, lack of foreign currency, external interference from illegal antennas, and a recent surge in vandalism against telecommunications infrastructure. In Havana alone, where there are 1.9 million cellular lines, 450,000 landlines, and over 68,000 Nauta Hogar services, there were 47 major incidents reported in 2024, with 10 additional cases already in 2025.

According to ETECSA, these damages include fiber optic cable cuts, battery thefts, burning of poles, and tower collapses, some of which are considered "counter-revolutionary acts." Castro highlighted the severe impact on the company’s finances and the country's security, noting that a single fiber optic cut in Camagüey resulted in losses exceeding 16 million CUP, in addition to disrupting airport services.

Beyond vandalism, ETECSA itself recognizes that the economic model sustaining it is in crisis. With declining foreign currency income, particularly due to reduced international top-ups and MLC services, ETECSA has been forced to redirect resources and technical staff not for progress but for repairs. Pedro Luis Lozada Morales, Director of the Southern Territorial Division, explained that even planned investments for 2024 had to be halted to address the damages, further delaying the modernization of an already outdated network.

Service quality remains one of the most frequent complaints among Cuban users: constant interruptions, slow browsing speeds, Transfermóvil failures, and an infrastructure unable to cope with the growing number of users and data consumption. Although ETECSA insists on its commitment to "continuous improvement" and claims to work in coordination with the Ministry of the Interior to protect its network, the reality is that the monopoly is experiencing an unprecedented crisis.

Without foreign currency, investment, and under pressure, the state telecommunications giant is faltering... and with it, the connectivity of a nation surviving in offline mode. Recently, Cuban telecommunications authorities blamed individuals using illegal equipment, as well as social indiscipline and vandalism, for the deteriorating quality of phone and mobile network services amid severe economic and financial tensions.

They explained that the use of non-approved antennas and repeaters interferes with the radiobase signal, directly affecting network performance in specific areas of the country. Nonetheless, the company has been struggling since 2024. In December, it was announced that ETECSA would raise internet tariffs from 2025 and introduce new packages and services in foreign currency.

This announcement was made by Manuel Marrero Cruz, Prime Minister of the Cuban regime, during an intervention before the National Assembly of People's Power (ANPP) held in Havana. Just a month later, the entity confirmed it had devised a plan to start charging for its services in foreign currency.

In a press conference, Tania Velázquez, the entity's Executive President, revealed that foreign currency revenues only account for 10% of total income, and despite this, prices have remained static, forcing the company to maintain the network and pay its international debts.

"We know these are services for the majority to use and enjoy. However, there's an issue of sustainability that goes beyond importing technology; it also involves paying for international connectivity capacity. If not paid, we risk debt or legal action," she stated.

"This drives us to take actions to recover income from abroad, although these have not been effective, especially due to the 1x24 exchange gap, in addition to frauds on some platforms that directly affect our company," she added.