Iran Offers Limited Internet in Rare Move to Stem War Losses

Iran Offers Limited Internet in Rare Move to Stem War Losses
Source: Bloomberg Business

Iran has started restoring limited internet connectivity to some businesses and individuals, a sign it's seeking to mitigate the economic damage from the nationwide shutdown that started with the outbreak of war with the US and Israel more than six weeks ago.

State-backed telecommunications firms are offering a "pro internet" package that businesses can apply for, according to digital rights group ASL19. This has led to a trickle of access to the outside world, several internet monitoring firms noted.

"There has been a very modest increase in connectivity," said Alp Toker, founder of NetBlocks. "It's not a major restoration and the fact that there is new infrastructure being built around tiered access points to a more extended disruption."

The move follows comments from an Iranian official that domestic businesses were losing $30 million to $40 million a day due to the internet blackout. Indirect damages are as high as $80 million a day, said Afshin Kolahi, chairman of the Knowledge-Based Economy Commission at the Iran Chamber of Commerce, during a recorded hearing shared on social media.

The Iranian government blocked access to the web shortly after the US and Israel launched strikes against the country in late February. This cut off most Iranians' ability to communicate with the outside world. It followed an earlier shutdown in January during anti-regime protests. Now in its seventh week, it's the world's longest nationwide blackout since the Arab Spring in the early 2010s.

To obtain access, companies in Iran must go through a formal identity verification process to buy one of the broadband or mobile data packages, giving the service provider an explanation for why connectivity is needed and providing supporting documentation, according to digital rights groups ASL19 and Miaan Group as well as screenshots of promotional materials from Iranian telecom Rightel. Those who are granted access can connect to online services outside of Iran, mirroring the white-listed SIM card system, which granted access to a handful of vetted users, including select universities and media outlets during the war.

The service doesn't seem to be available to private individuals, said Fereidoon Bashar, executive director at ASL19, and most of Iran's 90 million citizens remain disconnected. Some can access the internet via Starlink, but a recent government crackdown on sellers of the SpaceX terminals has shown that the regime continues to prioritize controlling public access to information.

Doug Madory, director of internet analysis at Kentik, expects a heavily controlled internet that eases pressure on businesses and public services to be the "new normal."

"You can address those needs and still keep the population in the dark," Madory said.

Miaan Group's Amir Rashidi confirmed that the slight increase in connectivity was due to the "pro internet" packages that were being offered to companies. He said the strict criteria for who gets access is a form of discrimination.

"We have entered a new phase in the struggle for the right to internet access," Rashidi said. "In this period, people's access to the internet will depend on social class, occupation, age, gender and more."