Over the past 15 years, the telecommunications and information systems industries have exploded exponentially in developing countries. Iran specifically has seen the development of over 50,000 rural data centers which provide Iran’s estimated 43 million internet users with access in both rural and urban areas.

The Iranian government began selling private internet access to its citizens in 1998 and has kept a firmly held monopoly since then through the government organization known as the Ministry of Information and Communication Technology. However, recent statistical analysis has indicated an increase in the demand for web hosting services that could serve as a tremendous opportunity for Iran to open the Telecommunications sector to local private companies.

Better Access

The major issue with Iran’s telecommunications system is the bandwidths allocated do not meet the present demand and, is outrageously overpriced; with citizens paying as much as ten times the rate for the same bandwidth that other more developed countries pay. This only serves to the detriment of the state by cutting off access to new and innovative technologies, which the private sector might be more willing to invest in.

If instead the government were to invest in and allow local companies to provide inexpensive quality telecommunications services, Iran would see an expansion in its overall GDP by offering a service that others in the region just can’t.

Exporting Access

The privatization of the telecommunication and information systems in Iran allows for the possibility of export to neighboring countries; who perhaps have not seem the same successful expansion in internet hosting capabilities. However, currently the data centers that Iran hosts are woefully understaffed and lacking in qualified professionals who have the know-how to create a more efficiently running communications system.

Private companies have the ability and a more vested interest to invest in updated technology which Iran currently lacks. The applications of this technology would allow for Iran to further its business interests in the region while simultaneously bringing the country up to date with more developed communications systems.

Changing the Game

Iran’s economy is currently suffering due to a highly fluctuating foreign currency exchange market. These issues with the economy mean that Internet Service Provider (ISP) related technologies are taking a hit. Without the allocation of funds to better supply bandwidth the webpage hosting market continues to be effected negatively. Due to the demand in hosting service Iran’s ISP has begun to offer higher quality and more affordable communication services in conjunction with companies that provide these services.

The government has also begun to allocate low interest loans specifically geared for small business looking to set up within the country. Many, including CEO of the Parsian-e-Sabz company Javad Hakimi have been lobbying the government to include loans for hosting companies as well, with the hope that it will further the expansion of more accessible communications systems and provide the region with better hosting services.