Network Monitor

The Cost of Internet Shutdowns: Network Monitor November 2022

Internet restrictions push mobile telecommunication companies and online services towards financial turmoil.

The most significant internet disruption in October was the major mobile internet shutdown on Iran’s three main mobile network operators: Irancell, Hamrah-e-Aval (MCI) and RighTel which lasted for around 11 days. In contrast,  we did not observe such an extended internet shutdown during November.

We believe that authorities stopped deploying extended internet shutdowns this month in part due to the increasing economic cost of doing so. In particular, these heavy disruptions and shutdowns have dealt a heavy blow to online businesses and services operating inside the country. A letter from RighTel – Iran’s third largest mobile network operator  – addressed to Iran’s ICT Minister, Eisa Zarepour in October supports this theory. 

 The letter, signed by the network’s Managing Director Yasser Rezakhah, states that  “during the past few weeks, the company’s resources and income have significantly decreased during internet shutdowns and other restrictions, such as limiting internet bandwidth from 21 September. They have also caused a decrease in data use from subscribers, decreasing data traffic by around  50% .” The letter also states that the “continued lack of compensation for losses could lead to bankruptcy.” 

In response, Zarepour dismissed RighTel’s letter in an interview with IRNA on 14 December, claiming that the operator was attempting to “blame their management issues on current events “. He added that  “RighTel has had financial issues in the past.” Bringing Zarepour’s claim of prior financial issues into doubt, the tech news website Peivast reported that RighTel had planned for an initial public offering (IPO) last summer but stock market conditions delayed the process. 

Some Iranian officials have expressed concern about the cost of internet shutdowns, including Valiollah Bayati, MP for Tafresh and Ashtian in Markazi province. In a public session in Majles (parliament), he stated that continued internet shutdowns have led to the closure of many jobs and people are worried, the government and the President must provide necessary measures.”  

According to Top10VPN so far in 2022, internet shutdowns in Iran have cost $613.4m, placing it third after Russia and Myanmar. 

Copy of the letter from RighTel addressed to the ICT Minister Eisa Zarepour on the growing financial pressure of internet restrictions on the network operator. 

 

ICT Minister Attempts to Distort the Reality of Internet Shutdowns

The Iran vs US World Cup football match on 29 November, which resulted in a defeat for the Iranian team, unsurprisingly drew significant attention inside the country. The ICT Minister Zarepour claimed that the internet infrastructure had improved, especially in provinces across the country. In particular he referenced the widespread streaming of the football match to support his claim that the “use of internet traffic had reached a record breaking 6 TBps.”  

Meanwhile, Kentik data showed a drop in international internet traffic during the first and second halves of the football match. 

Significant Disruptions 

AS16322 of Parsonline experienced major disruptions on BGP routing and this affected users in Tehran, in particular after November 14.

AS39501 of Neda Gostar Saba – experienced major disruptions on BGP routing and this affected users in Tehran and Alborz, in particular after November 6.

AS39650 of Atrin Information & Communications Technology Company PJS – experienced major disruptions on BGP routing and this affected users in Tehran, Fars, and Hormozgan, in particular after on November 14, 20 and 22.

AS56402 of Dadeh Gostar Asr Novin P.J.S. Co. experienced major disruptions on BGP routing and this affected users in Tehran.

AS48944 of Khalij Fars Ettela Resan Company J.S. – experienced major disruptions on BGP routing and this affected users in Busher, Khuzestan and Tehran, in particular after on November 12, and 26.

AS58334 of TCI – experienced major disruptions on BGP routing and this affected users in Busher, Khuzestan and Tehran, Alborz, Kordestan and more other provinces, in particular after on November 16, and 26.

AS44244 of Irancell – experienced disruptions on BGP routing and this affected users nationwide, in particular on 23 November. 

AS197207 of MCI – experienced disruptions on BGP routing and this affected users nationwide, in particular between 3, 4, 8 and 15 November.