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Digital Market “Capitulation”: The Tiered Internet System in the Tourism Sector

Iran’s tourism industry is introducing a new system of tourist SIM cards that allow foreign visitors and tourism workers to access the internet without censorship. The system was inspired by Cristiano Ronaldo’s visit to Iran, which sparked a debate about internet freedom in the country. 

However, the system also reinforces the government’s plan to create a tiered internet system and a strict security legislation called the “User Protection Bill.” The “tiered internet system” enacted by this bill would provide different levels of internet access depending on the social class or status of the users, and the tourism SIM card would be a special category that grants open internet access to a select group of people.

The tourist SIM card program will help pave the way for the implementation of the User Protection Bill, which aims to control all the online content that users can access and to meet their needs through the national internet. The government is not hiding this restrictive agenda, but rather promoting it. For example, Iran’s Minister of Tourism, Ezzatollah Zarghami, publicly advised Cristiano Ronaldo to use the domestic messaging apps, Eitaa and Bale, to communicate with his friends and family when he visited Iran on September 13, 2023.

Against this backdrop, the Minister of Information and Communications Technology, Eisa Zarepour, proposed the idea of a “Tourism SIM card” on February 23, 2023. This card would allow users to access apps like Instagram and Telegram without any censorship.

The Ministry of ICT faced intense backlash for this idea, which prompted it to issue a statement on February 24, 2023, saying that the tourism SIM card was merely a proposal and that there were no plans to launch it. However, many were not convinced by the statement and denounced the idea as a form of “internet capitulation”. A human rights lawyer, Seyed Ali Mojtahedzadeh, wrote in Shargh newspaper that the tourism SIM card would create a double standard of privileges and rights for foreigners, while depriving Iranians of the same.

The tourism SIM card can indeed be viewed as  a form of “internet capitulation” because it gives uncensored internet access only to foreign visitors and tourism workers, while the Iranian people have to use the filtered and slow national internet. In Iran’s modern history, many Iranians have described lopsided concessions given to foreigners as “capitulations.” 

The government has tried to justify unequal internet access by calling it “journalistic internet”, “technologists’ internet”, or “university professors’ internet”. These are different types of tiered internet system, where the government decides who can access what online content based on their social status and occupation.

The tourism SIM card in Iran would not only create unequal internet access but also a lucrative black market for people who want to use the internet without censorship.

In this regard, some people who are close to the Iranian government have been accused of profiting from the people’s need for unfiltered internet access. For instance, Ensiyeh Khazali’s son, Hamid Reza Zadeh, allegedly owns a VPN business and sells VPN services through a Canadian company.

While the demand for unfiltered internet access is high in the market, the government is cracking down on VPN sellers. The ICT Minister, Eisa Zarepour, wants to make VPN sales illegal. This might lead to a shift in the market to new entrepreneurs who can avoid legal troubles.

To this end, the government in Iran has given legal immunity to those close to it to speed up its operations, in the internet space or otherwise. For example, the members of the Public Property Production Committee, who are involved in large-scale economic activities, do not face any judicial consequences for their actions. It is likely that a similar approach exists for those who sell government-approved VPNs.

Ali-Asghar Shalbafian, Deputy Minister of Tourism, told the state news agency ISNA on September 24, 2023, that the tourist SIM card project has been pursued at the insistence of Ezzatollah Zarghami, the Minister of Tourism, and has the support of the Filtering Committee (Committee for Determining Instances of Criminal Content). The plan covers hotels, tour guides, and travel service providers, who would receive the tourism SIM cards. This seems to be an attempt to reduce the backlash against the plan and the criticisms of an “internet capitulation”.

The plan to introduce a tourism SIM card has faced significant opposition. Some tourism and technology startups in Iran have objected to the plan, as well as a member of parliament, Moinuddin Saeedi, who called it “shameful” and a form of “cultural capitulation”. Internet access activists outside of Iran have also expressed their disapproval of the plan. However, the government seems to be determined to pursue the plan and the tiered internet system.

The Implications of the “Chastity and Hijab” Bill on Internet Access

The parliament passed a bill on September 20, 2023, that aims to enforce a culture of “chastity and hijab”. The bill, also known as the Family Protection Bill, targets those who support voluntary hijab or challenge the mandatory dress code. The bill imposes several restrictions on both social media users and platforms. In this report, Filterwatch examines the implications of the bill for the internet freedom of Iranian citizens.

Initiating the Development of a Dedicated Technology Sector Trading Exchange

According to a report by Peivast Monthly from September 17, 2023, the Ministry of Economy and the Ministry of ICT have been ordered by the Seventh Plan Consolidation Committee to work together to establish a specialized technology exchange.

The Ministry of ICT Granted a Sandbox License

The Ministry of Communications and Information Technology received a one-year Sandbox license from the Working Group for Integrated Management and Coordination of Test Environments, according to a report by Peivast on September 12, 2023. The license is in line with the mission of the Information Technology Organization of Iran to regulate the technology sector.

The Supreme Council of the Cultural Revolution Assigns Monitoring Role to the Islamic Republic of Iran Broadcasting

The Islamic Republic of Iran Broadcasting was given the responsibility of regulating, licensing, and overseeing the media sector by the Supreme Council of Cultural Revolution, as reported by Digiato on September 2, 2023. The media sector includes platforms that produce and distribute user-generated content, video-on-demand (VOD) services, and home video networks. The regulation focuses on the creation of TV series, programs, and similar content.

Transforming the Amendment into a New Regulatory Bill: Establishing Licensing Guidelines for Cloud Service Centers

According to a report by Donya-e-Eqtesad, a draft document that was supposed to amend the rules for data center ratings, known as Resolution 247 of the Regulatory Commission, has not been reformed. The document, which was expected to be revised with the feedback from the digital business sector in early summer 2023, now aims to create a new regulatory body for licensing cloud services to businesses. Filterwatch has not seen the document and cannot confirm its details.

Filterwatch cannot independently verify the specifics of this document as it has yet to be publicly released.

Authentication Required for Real Estate Advertisers

The Minister of Roads and Urban Development, Mehrdad Bazrpash, told ILNA that housing advertisements must now be verified through the Real Estate and Housing Portal. The portal would check the identity and property information of the owners who want to advertise their houses. 

This is part of the Seventh Development Plan Bill, which includes long-term plans for authentication, data collection, and monitoring of citizens on the National Information Network platform. Several government agencies are working on these plans.

Alteration in Currency Sourcing for Mobile Phone Imports Exceeding $600

 

Narges Bagheri Zomorodi, the Director General of the Office of Export and Import Regulations at the Trade Promotion Organization, issued a directive to the Office of ICT and Cyberspace Security, saying that mobile phones that cost more than $600 must use the export currency as the source of funding. The directive must be implemented through the trade portal, according to ISNA.

Presenting the Draft of Iran’s National Document on Artificial Intelligence Development to the Supreme Council of the Cultural Revolution

 

The Science and Technology institution drafted a National Document on Artificial Intelligence Development and sent it to the Supreme Council of the Cultural Revolution for further review, according to Hadi Ashari, the deputy of the AI and Robotics Center. He told Mehr news agency on September 9, 2023, that one of the goals of the document is to foster artificial intelligence unicorn companies.

Initiative to Expand the National Information Network to 75% by Early 2024

The Minister of ICT, Eisa Zarepour, said that he plans to increase the coverage of the National Information Network to 75% by early 2024, ISNA reported on September 18, 2023. He also expected that many people would have optical fiber connections by then.

 

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