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News

Iran Internet Disruptions Threaten 400,000 Online Businesses

The Internet Business Association estimated financial damages from outages at $1.5 million per hour

Elyas
Written by Elyas | 2 July 2025 | 00:13

Iran’s Internet Business Association has warned that persistent connectivity disruptions are endangering hundreds of thousands of companies across the country, urging authorities to end what it described as “systematic” interference with network stability.

In a letter to ICT Minister and the state-owned Telecommunication Infrastructure Company, the association said more than 400,000 small and medium-sized online businesses - which support the livelihoods of millions of Iranians - face the threat of complete collapse if disruptions continue.

The association estimated financial damages from outages at $1.5 million per hour, even under what it called optimistic assumptions. “We are already witnessing widespread layoffs, suspension of investments in the startup ecosystem, and announcements of halted operations or bankruptcies,” the letter said.

The association listed targeted DNS manipulation, blocked IP addresses, deliberate throttling of service quality, and restrictions on international connectivity among the measures affecting Iranian users.

The association called for two immediate steps:

  1. An end to deliberate service degradation, including DNS interference, protocol filtering such as QUIC, and intentional speed reductions.
  2. The launch of a public status dashboard providing real-time, transparent information on network incidents, including their technical causes, expected duration, and corrective actions.

Beyond direct financial harm, the association warned of collapsing trust between consumers and providers, as well as severe damage to human capital through the ongoing migration of technology talent abroad. These trends, it said, pose “deeply troubling” risks to the future of Iran’s digital ecosystem.

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