Iran’s ICT Industry Faces Contraction Amid Declining Investment and Revenue
Recent official statistics on revenue and investment in Iran’s Information and Communications Technology (ICT) industry indicate that this sector is shrinking.
ICT Revenue and Investment in 2023
According to data released by the Communications Regulatory Authority (CRA), the ICT industry’s revenue in Iran for the year 2023 was approximately 127,810 billion tomans. Considering an exchange rate of around 60,000 tomans per US dollar in March 2024, this amounts to approximately $2.116 billion.
Additionally, around 39,000 billion tomans (approximately $647 million) were invested in the industry during the same period, based on the same exchange rate.
While these figures show that the industry remains operational, a comparison with previous years suggests a gradual contraction of the ICT sector in Iran.
Declining Investment in the ICT Sector
In February 2024, the then-head of the CRA reported that in 2017, Iran’s three major mobile operators—Irancell, MCI, and Rightel—had collectively invested $1.3 billion in the sector. By 2022, this investment had dropped to $580 million, and in 2023, total investment across the entire ICT industry—not just the mobile sector—stood at $647 million.
Market Trends Remain Unchanged
The latest data from the CRA’s Autumn 2024 report show that many key indicators in the ICT sector have remained largely unchanged:
– Mobile Subscribers: By the end of autumn 2024, Iran had 159.388 million mobile subscribers, resulting in a penetration rate of 185.42%.
– Mobile Internet Users: The number of mobile internet subscribers reached 116 million, with a penetration rate of 135%.
– Fixed-Line Subscribers: The decline in fixed-line phone subscriptions continues. As of autumn 2024, there were 28.225 million fixed-line subscribers, marking a 2.74% decrease compared to the previous year.
Declining Interest in xDSL Services
Despite the overall growth in internet subscribers, fixed broadband penetration remains low. Over the year leading up to autumn 2024, the number of fixed broadband subscribers increased by only 1.22%, reaching 11.145 million, with a penetration rate of just 12.97%.
A breakdown of fixed broadband subscriptions by technology shows a decreasing preference for xDSL services (ADSL and VDSL), while fiber optic connections are gaining popularity.
Between the end of summer and the end of autumn 2024:
– xDSL subscriptions declined by approximately 85,000.
– Fiber optic subscriptions increased by 64,000.
– TD-LTE technology also saw growth, with around 65,000 new subscriptions.
Conclusion
The contraction of Iran’s ICT industry, reflected in declining investment and sluggish revenue growth, presents a significant challenge. As the sector faces mounting financial and regulatory pressures, strategic interventions are necessary to ensure sustainable growth and technological advancement.
Reference
https://digiato.com/tech/regulatory-statistics-show-irans-ict-industry-is-on-the-path-to-shrinking
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