Irancell CEO Warns of Daily Internet Outages Without Tariff Reform

Alireza Rafiei, CEO of Irancell, emphasised the urgent need to revise tariffs to ensure network stability and improve internet quality. He warned that without tariff adjustments, telecom operators will lack the resources to invest in infrastructure, leading to potential daily internet outages similar to those experienced with electricity blackouts.

Speaking at a press conference on Sunday, August 17, 2025, Rafiei addressed several critical issues, including tariff reforms, power outage challenges, upgrading communication sites with advanced batteries, allocating 5G frequencies, supporting local equipment manufacturing, collaborating with Tehran Municipality for fiber optic network expansion, and resolving urban site problems. He noted that improving internet quality is a key demand from the Ministry of Communications and regulatory authorities.

Rafiei explained that network quality depends on multiple factors such as infrastructure development, power outages, and tariffs. He stated that tariffs significantly impact operators' ability to invest. Irancell and other telecom operators recently submitted a proposal requesting a 70 percent tariff increase due to rising operational costs like electricity and foreign exchange rates for equipment procurement. Without sufficient funding, infrastructure development, and consequently internet quality, will stagnate.

The CEO warned that if tariffs remain unchanged, users could face daily internet outages lasting up to three hours. This scenario is neither acceptable to the Ministry of ICT nor telecom operators.

While increased tariffs alone cannot resolve power outage issues entirely, Rafiei said they would facilitate necessary investments. Discussions on tariff adjustments are ongoing but remain under the jurisdiction of the Telecommunications Regulatory Authority.

Battery Limitations in Managing Power Outages

Rafiei also highlighted the impact of frequent power outages on communication networks. Over the past three years, approximately 10 percent of daily traffic has been lost due to power cuts. This equates to two percent of Irancell’s sites being offline for 24 hours.

He explained that even high-tech batteries can only sustain operations for 45 minutes to one hour when fully charged. As battery lifespan diminishes over time, this duration decreases further. Batteries require 24 hours to recharge fully; repeated outages during this period shorten their lifespan considerably.

Rafiei stressed that batteries are not a long-term solution but merely a temporary backup during isolated outages. When power is lost at one site within a network chain, it can disrupt multiple interconnected sites simultaneously.