Minister of Information and Communications Technology Seyed Sattar Hashemi said on Monday the Internet shutdown since outbreak of protests has caused daily losses of approximately $4.8 million to the core of the digital economy and nearly $48 million to the country’s overall economy.
“Considering the direct and
indirect employment of around 10 million people in the digital economy sector
and the limited resilience of companies active in this field, urgent action
must be taken to reduce these damages,” he said in a meeting with Hossein
Afshin, Vice President for Science, Technology, and the Knowledge-Based Economy.
During the meeting which focused
on reviewing domestic platforms such as the Shad educational network and
supporting internet-based businesses affected by Internet outages, he said: Repeated
disruptions in e-government services raise the question of whether these
problems stem from weaknesses in network connectivity or from insufficient
resilience and technical stability of government systems themselves.
Miscellaneous Systems and
Disruptions in Digital Services
Referring to initial estimates
regarding the number of active systems within executive bodies, Hashemi said
that, on average each ministry or government organization operates more than 50
active systems.
“These systems are not on the
same level, do not have the same scale or functions, and this diversity makes
management, support, and identifying the root causes of disruptions more
complex,” he said.
Raising the question of why
private digital platforms do not experience significant outage and when
disruptions occur, users do not perceive them as serious problem, the minister
explained that private-sector platforms use the same national communications
network.
“However, the key difference lies
in management and active support in the private sector, which in many cases has
enabled stable service delivery. In contrast, government agencies face more
challenges, and so far, no government service platform has been introduced that
can provide successful and stable services to the public on a large scale and
with high quality,” he added.
Need to Upgrade Educational
Systems
He referred to the state of
educational infrastructure and said: “Universities and higher education
institutions, due to greater centralization, fewer systems, and reliance on
private companies for maintenance and support, generally face fewer problems in
service delivery and traffic management, and their support and service
provision are managed more transparently.”
Regarding the evaluation of
cultural and educational platforms such as the Shad Network, he also said that
a clear distinction must be made between the network layer and the system layer,
otherwise, “identifying the actual problem may be inaccurate.”
Hashemi announced that the Shad
Network operates with more than 400 servers and added, “Expert assessments
indicate that to provide satisfactory service, around 375 additional servers
must be effectively brought online, although this number may vary depending on
server quality.”
He stressed that supplying these
servers and putting them into operation is both urgent and essential, and that
no time should be wasted.
Supporting Mass Production of
Domestically Manufactured Equipment
The minister criticized the
overlooking of measures taken to support domestic production and said that in
some meetings it is suggested as though the ICT Ministry has provided no
support for domestic manufacturing, whereas this perception does not reflect
reality.
Referring to the nationwide
fiber-optic development project, he said, “The shift from copper cables to
fiber optics during President Masoud Pezeshkian’s administration led to
widespread momentum among knowledge-based companies, and their products were
supported through pre-purchase arrangements.”
“Domestic fiber-optic production
is steadily increasing, and mass production of various network equipment and
next-generation modems has begun.”
Role of Technology Parks and
Payam Special Economic Zone
Hashemi stated that companies
based in the ICT Technology Park and the Payam Special Economic Zone have
seriously entered the mass production phase, saying that the ICT Ministry has thoroughly
supported this path.
“At a ceremony attended by
hundreds of ICT managers and 150 knowledge-based companies, numerous contracts
were signed, accelerating the development of the fiber-optic network,” he
added, “Domestically produced telecommunications equipment and radio links are
being used in the communication networks of some other countries, an
achievement resulting from belief, planning, and sustained follow-up.”
Digital Economy Losses: Core vs.
Macroeconomy
Regarding the damage caused by Internet
blackout to digital economy businesses, the ICT minister cited several
estimates, stating that the daily loss to the core of the digital economy is
estimated at around $4.8 million, mainly related to operators and the network
layer.
“Daily losses to the broader
macroeconomy are estimated at about $48 million,
which include the second and third layers of the digital economy.”
Citing GDP figures, Hashemi explained
that assuming a minimum 5 percent share of the digital economy in the country’s
overall economy, these estimates are reasonable, and even higher figures have
been mentioned by the Ministry of Economy and the Central Bank.
He referred to the employment of
around 10 million people directly and indirectly in the digital economy, and
reiterated that people’s jobs and income are directly harmed, which could lead
to social and security consequences.
He also said that estimates show
the average resilience of Internet-based companies and businesses is about 20
days, and the country is approaching this threshold, therefore, “existing
capacities must be used to mitigate the damage.”
Pointing to limited available resources,
Hashemi said that support measures should begin by prioritizing smaller
companies, “although the effects of the crisis are also spreading to larger
firms”.
Hashemi announced that the issue
has been raised in the cabinet meeting and expressed hope that the country will
return to normal connectivity conditions and that part of the losses will be
compensated.
Also referring to follow-ups on
the employment status of freelancers, Hashemi stated that registration
statistics show around 2,000 freelance workers, which is far from the reality
on the ground.
“It was decided that a more
accurate assessment be conducted so that appropriate support mechanisms can be
designed,” the ICT minister noted.