It is no shock that Iran currently has a very weak internet quality in terms of speed & bandwidth as well as more infrastructure aspects. Iran’s current internet speed comparing to other middle eastern countries doesn’t look good either. But things are changing now.
Slow internet doesn’t just mean smashing your head to the wall each time you see a long video loading time, faster and more decent Internet connectivity also means more business and market opportunities which will ultimately mean a higher GDP for the country. Analysts predict that Iran could become a very large online video streaming market based on the current social media behaviors in Iran and the Middle East. Saudi Arabia is currently ranked 1st for the highest number of YouTube views per internet users in the world. Similar behavior could also be witnessed in many other countries in MENA.
Rouhani’s government have done many developments on Iran’s internet situation. The country’s internet bandwidth has grown 4 times in the past year. However the problem is the number of smartphones have grown by 10 times in the same period. Balancing the supply and demand has become tricky.
A leap of technology can be seen with the rapid development of 3G and 4G internets on mobile devices. In most cases smartphone users are getting 10 times the internet speed they are getting from their home internet which still runs on the old school DSL/ADSL technology.
Iran is continuing to develop its mobile internet infrastructure even further. Based on a report by Tasnim News, Iran Telecom Company has signed a deal with Kazakhstan’s telecom company to move to the 5th generation of mobile connectivity.
On the day the deal was being signed, it was also mentioned that telecom and communications is responsible for %1.5 of Iran’s GDP which had a great impact in Iran’s economical growth according the Ghanbari, Chairman of Iran Telecom Company.
Ghanbari also announced that $15 Billion will be invested in the country’scommunication sectors in the next 5 years which half that amount will be dedicated to Iran’s Telecom Company.
He continued by saying “We are also in planning of a development schedule to develop Iran’s bandwidth to get to an average of 20 Megabits per second per person by the next 5 years.
He also mentioned surpassing 4th generation technology to the 5th generation are among the highest priorities.
Internet development will create a market opportunities for startups to harness this advantage and create value. More interest are coming towards online video streaming services in Iran with recent internet developments. Undeniably, more startup will emerge in this sector as the infrastructure for such business gets more appealing .