The Data and Governance Laboratory at Sharif University of Technology states that the Ministry of Communications under Eisa ZarePour received a score of 8 out of 20.
The Data and Governance Laboratory of the Policy Research Institute at Sharif University of Technology, in a report analyzing the status of the Ministry of Communications and Information Technology under the 13th government, has addressed the key issues that the future Minister of Communications will face.
Preference for Domestic Contractors in Fiber Optic Projects Has Compromised Quality
The first issue addressed in this report is the development of fiber optics. The authors note that the actions of the 13th government in advancing the fiber optic network have mainly been effective in expanding nominal coverage (penetration rate), with the actual number of users remaining low. They write: “The mega-project initiated during Eisa ZarePour with a target of reaching 20 million households has experienced many ups and downs. Today, it is left to the future Minister of Communications with around 400,000 actual users and 8 million nominal coverage.”
The report also points out issues in the fiber optic delivery layer as one of the challenges for continuing the project. “On one hand, the technical teams for this task are limited, and one cannot expect much agility in this process. On the other hand, this process is inherently time-consuming and costly based on global experiences; therefore, it is difficult to promise a significant increase in the number of actual fiber users without accelerating the delivery layer and stimulating demand.”
Financial crises, insistence on using domestic production, and filtering are other challenges highlighted in the report. The report criticizes the Ministry of Communications for “allocating the country’s massive execution capacity to the fiber optic project,” considering it contrary to “the economic assumptions of scarce resources and unlimited needs.”
Regarding the insistence on domestic production, the authors state: “Reports and investigations indicate that the insistence on preferring contractors in various parts of this project and other development projects of the 13th government was not based on a solid and reasoned economic justification. Instead, it has exacerbated the gradual decline in production quality due to sudden shocks in the equipment market.” Accordingly, the Data and Governance Laboratory has asked the future Minister of Communications to carefully oversee the contracting processes and the justifications provided for them, addressing any potential issues to expedite the project.
Revenue from VPNs Should be Redirected Towards Infrastructure Development
The report discusses the impact of filtering on fiber optic demand: “The widespread and extensive filtering applied after September 2022 has likely affected the demand for high-quality internet and possibly ‘fiber,’ as major internet users (in terms of consumption) are active in at least one of the filtered entertainment, social media, or gaming networks.”
The costs of filtering and the resulting public dissatisfaction are the second challenges noted by the Data and Governance Laboratory. The authors point out that, under the 13th government, VPN usage by users has reached 80%, and the revenue from buying and selling VPNs is estimated at 5 trillion tomans annually. They conclude: “This substantial revenue should be redirected through appropriate planning and policymaking, and certainly gradually, not overnight, towards the development of the country’s communication infrastructure. Currently, it not only imposes additional costs on the Iranian household budget but also contributes to widespread social dissatisfaction and undermines the government’s social capital.”
The report reminds that more than half of internet users hold the government responsible for the restrictions imposed on the internet since September 2022. “Thus, the 14th government will face a difficult challenge due to the prominence of promises related to cyberspace and filtering, as well as the creation of public demands and expectations in this area.”
According to the report, after the restrictions imposed by the Ministry of Communications during ZarePour’s tenure and following the 2021 protests, domestic traffic grew by an average of 15%, and users of domestic messaging apps saw a 20% increase at best. The authors then question, “How optimal and justifiable has this achievement been, especially in the year following the security and crisis conditions (March 2022 to March 2023) concerning government and operator expenditures?”
The Data and Governance Laboratory considers the 14-year performance record of the Content Determination Task Force to be “flawed, inadequate, and even institutional in many respects.” The report states: “The unlimited scope of authority of this committee, issuing orders (primarily filtering, suspending licenses, or cutting hosting services in domestic data centers) without forming a court or having the accused present for defense, the difficulty of appealing the committee’s decisions, and the unavailability of the Internet.ir website in most cases (which has been completely inaccessible for the past year), as well as the lack of a transparent alternative communication channel, have caused serious disruptions in the economic activities of businesses.”
Filtering Targets Domestic Entities
The authors believe that the “six-year price suppression of internet packages by fixed and mobile operators” has prevented companies from making necessary investments to improve their infrastructure, leading to gradual declines in internet quality, infrastructure maintenance, and ultimately user experience.
Regarding filtering equipment, they argue that these tools “have not only failed to fulfill their assigned missions but also, due to insufficient packet inspection methods, have imposed additional burdens on the network, weakened the quality of local services, and targeted domestic businesses.”
Unblocking Google Play and Twitch Should Be Priorities for the Future Minister of Communications
The Data and Governance Laboratory has also warned of the “imminent bankruptcy of the Communications Infrastructure Company” and reminded that governance decisions in the second half of 2021 resulted in approximately half of the company’s revenue from international traffic not being realized, which has not yet been fully compensated. Additionally, “the approval and application of various costly discounts and incentives in the domestic traffic sector (especially for domestic messaging apps and social networks) have imposed additional financial burdens on the sole major bandwidth wholesale provider in the country, putting its financial stability in a dangerous and urgent situation.”
Another part of the report addresses challenges in computer games. The Data and Governance Laboratory identifies addressing sanctions with priority on popular games and feasible options, reaching consensus within the government for reopening Google Play and Twitch, and providing better internet for professional consumers as critical issues for the 14th government’s Minister of Communications.
By raising these issues, the Data and Governance Laboratory ultimately gives Eisa ZarePour, the Minister of Communications and Information Technology of the 13th government, a score of 8 out of 20: “The 13th government began its mission with the slogan ‘Sweet Taste of Technology’ and set the ‘Fiber Optics’ mega-project with a promise of 20 million households to experience this taste. The unexpected three-year term of this government, alongside significant factors such as increased filtering of popular social media and numerous unconsidered challenges in delivering the ‘taste’ of fiber to users’ homes, resulted in a score of 8 out of 20 for ZarePour’s Ministry of Communications.”
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