{"id":5188,"date":"2024-11-30T09:18:46","date_gmt":"2024-11-30T09:18:46","guid":{"rendered":"https:\/\/filter.watch\/english\/?p=5188"},"modified":"2025-01-13T09:41:43","modified_gmt":"2025-01-13T09:41:43","slug":"investigative-report-november-2024-internet-from-a-public-infrastructure-to-a-luxury-commodity","status":"publish","type":"post","link":"https:\/\/filter.watch\/english\/2024\/11\/30\/investigative-report-november-2024-internet-from-a-public-infrastructure-to-a-luxury-commodity\/","title":{"rendered":"The Internet in Iran: From Public Resource to Exclusive Commodity \u2013 Exploring Pricing and Access Challenges"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">The cost of internet access is a primary factor influencing citizens' ability to access free information, which is essential for the economic, social, and cultural development of any country.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">In Iran, however, internet pricing policies have made unrestricted internet access increasingly inaccessible for many. Factors such as the price disparity between domestic and international traffic and the added costs of using VPNs have effectively turned internet access into a luxury.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">This report examines the pricing trends of internet services offered by various providers from the winter of 2021 to the summer of 2024 to shed light on this growing issue.<\/span><\/p>\n<h4><b>Introduction<\/b><\/h4>\n<p><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">Affordable and high-speed internet access is a prerequisite for the growth of online businesses, e-learning, e-government services, innovation, and many other critical activities. The cost of internet access plays a crucial role in determining a population\u2019s ability to connect, directly impacting a country\u2019s overall growth and development. According to existing <\/span><a href=\"https:\/\/www.eghtesadonline.com\/fa\/news\/816826\/%D8%B5%D9%81%D8%B1-%D8%AA%D8%A7-%D8%B5%D8%AF-%D9%82%DB%8C%D9%85%D8%AA%E2%80%8C%D9%87%D8%A7%DB%8C-%D8%AC%D8%AF%DB%8C%D8%AF-%D8%A7%DB%8C%D9%86%D8%AA%D8%B1%D9%86%D8%AA\"><span style=\"font-weight: 400;\">reports<\/span><\/a><span style=\"font-weight: 400;\">, internet expenses in Iran constitute, on average, 8.3% of a household\u2019s monthly income.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Given the increased reliance on VPNs to access blocked platforms, internet costs for Iranian households have risen significantly. Reports indicate that, since the second half of 2022, VPN usage has surged to over 70%, causing internet expenses to increase by approximately two and a half times, reaching as much as 10% of household spending.<\/span><\/p>\n<h4><b>Key Findings of the Report<\/b><\/h4>\n<ol>\n<li><b>A) Increased Internet Access Costs Across Three User Groups<\/b><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">Current policies not only limit access for regular users but also widen the digital divide among different social classes. Wealthier users can afford advanced services such as cloud platforms or dedicated servers, while low-income individuals are left with inadequate access.<\/span><\/li>\n<\/ol>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Access Without VPNs:<\/b>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Price Disparity Between Domestic and International Traffic:<\/b><span style=\"font-weight: 400;\"> Domestic traffic costs are, on average, 3 to 4 times cheaper than international traffic.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Rising Costs of Fixed and Mobile Internet:<\/b><span style=\"font-weight: 400;\"> Following tariff increases, users pay approximately 140,000 tomans per month for fixed internet (assuming 41 GB of international traffic). The cost of similar mobile data packages averages around 320,000 tomans per month.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Access With VPNs:<\/b>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Increased Costs:<\/b><span style=\"font-weight: 400;\"> In addition to internet fees, users pay between 100,000 and 250,000 tomans per month for VPN subscriptions. Consequently, the monthly cost of mobile and fixed internet for users requiring VPNs rises to approximately 560,000 tomans.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Impact on Speed and Quality:<\/b><span style=\"font-weight: 400;\"> Using VPNs results in reduced internet speed and an unsatisfactory user experience, especially for those requiring stable and high-speed access.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Access With Dedicated VPN Servers:<\/b>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Cloud Service Costs:<\/b><span style=\"font-weight: 400;\"> The average cost of obtaining a server with 5 terabytes of traffic on cloud services is approximately 1,700,000 tomans per month. If this server is shared among 50 users, the cost per user is about 34,000 tomans. Adding this amount to the monthly fixed and mobile internet fees (460,000 tomans) brings the total cost per user to 494,000 tomans.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ol>\n<ol>\n<li><b>B) Lack of Transparency and Complexity in Internet Service Tariffs<\/b><\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">The pricing strategy for internet services in Iran is characterized by a lack of transparency and complexity. Users find it challenging to make accurate price comparisons, making it difficult to assess internet costs effectively.<\/span><\/p>\n<ol>\n<li><b>C) Pricing Strategy Favoring Domestic Traffic<\/b><\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">Analyses reveal that internet pricing policies in Iran are designed to encourage users to rely on domestic traffic. These policies include lower costs for domestic traffic, more stable pricing, and the exclusion of international traffic at lower speed tiers.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The segmentation of pricing between domestic and international traffic pushes users toward consuming domestic content. While this aligns with the goals of the National Information Network, it significantly reduces users\u2019 access to international content.<\/span><\/p>\n<h4><b>The Origins of Rising Internet Costs<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">The increase in internet prices in Iran can be closely linked to the development of the National Information Network, which took on a <\/span><a href=\"https:\/\/filter.watch\/wiki\/resolution-on-domestic-internet-tarrifs-break-from-net-neutrality-2\/\"><span style=\"font-weight: 400;\">new form<\/span><\/a><span style=\"font-weight: 400;\"> in 2017 with the passage of a regulatory bill mandating the segmentation of internet traffic into domestic and international categories. <\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><a href=\"https:\/\/respina.net\/wp-content\/uploads\/2020\/03\/%D9%85%D8%B5%D9%88%D8%A8%D9%87-%DB%B2%DB%B6%DB%B6-%D8%B3%D8%A7%D8%B2%D9%85%D8%A7%D9%86-%D8%AA%D9%86%D8%B8%DB%8C%D9%85-%D9%85%D9%82%D8%B1%D8%B1%D8%A7%D8%AA.pdf\"><span style=\"font-weight: 400;\">The bill<\/span><\/a><span style=\"font-weight: 400;\"> stipulated that there would be no volume limits for users and that internet would be provided at a unified monthly rate, but under the condition of \"fair usage.\" The definition of fair usage was left to the discretion of service providers.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In late April 2022, the prices of packages offered by several internet companies, including Shatel and Telecommunication Company of Iran, increased by as much as 100%.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Additionally, users were indirectly pushed toward more expensive services through other tactics. For example, in August 2023, some fixed internet providers in Iran, although not officially raising their prices, removed low-cost packages and plans with speeds below 2 Mbps, effectively forcing users to opt for more expensive options.<\/span><\/p>\n<h4><b>Methodology for Examining Internet Access Costs<\/b><\/h4>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Analysis of Tariffs from Four Major Fixed and Mobile Internet Service Providers<\/b><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">The study analyzed the tariffs of four major fixed internet providers (including ADSL, the most widely used service) and mobile operators in Iran, namely Irancell, MCI (Hamrah-e-Aval), Shatel, and Pars Online, from 2021 to the summer of 2024. <\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">Comparable services were selected, and prices were analyzed based on growth in speed, traffic, and costs during the studied years. Additionally, the price per gigabyte of domestic and international traffic for each operator was examined, and comparative charts were provided.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Collection of Data on Costs of Censorship Circumvention Tools<\/b><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">Information on the costs associated with purchasing and accessing tools to bypass censorship for Iranian users was gathered.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Analysis of Tariffs from Four Cloud Service Providers<\/b><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">The study reviewed tariffs from four cloud service providers, including ArvanCloud, Pars Pack, SabaHost, and Abr Iran, for comparable services over recent years.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Categorization of Internet Users<\/b><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">Internet users were classified into three main groups:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Users who do not use VPNs.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Users who use VPNs.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Users who rely on cloud services to set up VPNs and access the internet.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Estimation of Monthly Internet Access Costs<\/b><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">The study estimated the monthly cost of fixed and mobile internet access for each group of users to better understand the share of internet access costs in their overall living expenses.<\/span><\/li>\n<\/ol>\n<h4><b>Fixed Internet Pricing Analysis<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">For this section of the report, two major fixed internet providers in Iran, Shatel and Pars Online, were analyzed. Among the various ADSL services, which are the most widely used, Shatel's Silver Plan and Pars Online's Emerald Plan were selected due to their similarities.<\/span><\/p>\n<p><b>Analysis of Shatel and Pars Online Policies and Their Impact on Fixed Internet Users in Iran<\/b><\/p>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Increased Prices for International Traffic at Higher Speeds<\/b><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">Both companies have significantly increased the prices for international traffic, particularly at higher speeds. This policy appears to be aimed at maximizing profits from users who require international traffic.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Elimination of Low-Speed Services<\/b><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">Services with lower speeds (512 Kbps and 1024 Kbps) were completely discontinued in 2024. This change reflects the companies' focus on offering higher-speed services and reducing maintenance costs.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Gradual and Controlled Increase in Domestic Traffic Prices<\/b><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">Compared to international traffic, domestic traffic prices have seen relatively smaller increases and, in some cases, such as with Shatel, have even decreased. This measure clearly aims to encourage users to consume more domestic content and reduce reliance on the global internet.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Sudden Increase in International Traffic Prices<\/b><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">In 2024, the cost of international traffic, especially at speeds above 2048 Kbps, rose significantly. This change indicates a shift in policies governing internet access and usage.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Overall Price Reduction at Higher Speeds<\/b><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">The cost per gigabyte of traffic (both domestic and international) has decreased as speeds have increased. This trend is driven by increased competition among providers, reduced infrastructure costs, and the expanded availability of internet services.<\/span><\/li>\n<\/ol>\n<h4><b>Mobile Internet Pricing Analysis<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">In this section, the prices of internet packages offered by Iran\u2019s two major mobile operators, Irancell and MCI (Hamrah-e-Aval), were examined.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Following a 34% increase in mobile internet prices, high-volume internet packages were removed from the offerings of both MCI and Irancell. The remaining high-volume packages now come with usage restrictions; for instance, a 30 GB package is only usable between 2:00 AM and 7:00 AM.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Currently, high-volume mobile internet packages are no longer available. For example, if a user wishes to obtain 50 GB of internet per month by renewing a 5 GB monthly package ten times, they would need to pay approximately 317,000 tomans. This amount is about 5.67% higher than the 300,000 tomans previously charged for 50 GB packages after the tariff increases.<\/span><\/p>\n<h4><b>Cloud Services Pricing Analysis<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">A review of monthly traffic costs for cloud services from Pars Pack, SabaHost, and ArvanCloud shows that in 2023, coinciding with a 34% increase in mobile and fixed internet tariffs, the average price increase for cloud services was approximately 68%.<\/span><\/p>\n<p><b>VPN Access Costs<\/b><\/p>\n<p><span style=\"font-weight: 400;\">An analysis of several V2RAY VPN tariffs reveals that users pay between 25,000 and 170,000 tomans per month for VPNs, depending on data usage (ranging from 10 GB to around 100 GB).<\/span><\/p>\n<p><b>Impact of Rising Fixed and Mobile Internet, Cloud Services, and VPN Costs on User Access to the Internet<\/b><\/p>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Users Without VPNs<\/b>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Monthly internet consumption based on June 2024 tariffs from Shatel and Pars Online: Up to 110 GB of domestic traffic or an equivalent of 41 GB of international traffic costs approximately 140,000 tomans per month.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">The average cost of 50 GB of mobile data for one month, based on Spring 2024 tariffs from MCI and Irancell, is approximately 320,000 tomans.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">Assuming the user does not utilize a VPN, their total monthly fixed and mobile internet expenses are estimated to be around <\/span><b>460,000 tomans<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Users With VPNs<\/b>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Monthly fixed and mobile internet costs (as calculated above): <\/span><b>460,000 tomans<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Average VPN costs (e.g., V2RAY for 50 GB per month): <\/span><b>100,000 tomans<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">Therefore, assuming the user opts for an affordable VPN, their total monthly internet expenses, including fixed and mobile access, are estimated to be around <\/span><b>560,000 tomans<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Users Utilizing Cloud Services to Set Up VPNs<\/b><\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">As in the example provided for the first user group, assuming the user does not utilize a VPN, their total monthly expenses for fixed and mobile internet are estimated to be approximately 460,000 tomans. If the user decides to purchase a server to set up a VPN and bypass censorship, an additional cost of around 1,700,000 tomans would need to be added to this amount, although this cost is typically shared among server users.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For example, the details of this calculation can be explained as follows:<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">The average cost of purchasing a server to set up a VPN, assuming the server provides services to 50 users and each user consumes approximately 100 GB of traffic via the VPN as calculated above, would require a server with 5 terabytes of traffic. The average price of such a server, based on the companies reviewed in this report and the cloud service tariffs included, is estimated to be around 1,700,000 tomans per month.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The analysis of fixed internet pricing in Iran reveals that the country's internet pricing policies\u2014characterized by the segmentation of domestic and international traffic and the gradual increase in tariffs\u2014have significantly impacted users' access to and experience of internet services. In fact, the current pricing policies not only restrict user access but have also led to higher costs for them. This trend highlights the urgent need to revise existing policies and move towards more equitable and affordable internet access to reduce the digital divide and support economic and social development.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The cost of internet access is a primary factor influencing citizens' ability to access free information, which is essential for the economic, social, and cultural development of any country. In Iran, however, internet pricing policies have made unrestricted internet access increasingly inaccessible for many. Factors such as the price disparity between domestic and international traffic<a class=\"more-link\" href=\"https:\/\/filter.watch\/english\/2024\/11\/30\/investigative-report-november-2024-internet-from-a-public-infrastructure-to-a-luxury-commodity\/\">Continue reading <span class=\"screen-reader-text\">\"The Internet in Iran: From Public Resource to Exclusive Commodity \u2013 Exploring Pricing and Access Challenges\"<\/span><\/a><\/p>\n","protected":false},"author":44,"featured_media":5189,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[3],"tags":[260,258,259,261,256,262,263,257],"class_list":["post-5188","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investigations","tag-affordable-internet-access","tag-digital-divide-analysis","tag-domestic-vs-international-traffic","tag-impact-of-censorship-on-internet","tag-internet-costs-in-iran","tag-internet-pricing-trends","tag-iranian-internet-policies","tag-vpn-usage-in-iran","entry"],"acf":[],"aioseo_notices":[],"aioseo_head":"\n\t\t<!-- All in One SEO Pro 4.9.8 - aioseo.com -->\n\t<meta name=\"description\" content=\"The cost of internet access is a primary factor influencing citizens&#039; ability to access free information, which is essential for the economic, social, and cultural development of any country. 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