Internet penetration statistics in Iran are notoriously unreliable. The numbers tend to vary between 40% and 70%. Official statistics, however, state that the penetration rate is around 85%, a number that is highly contested. The real rate is thought to be about 45%. Internet quality is low and prices are high, partially due to the fact that the state-owned Telecommunications Infrastructure Company holds a monopoly on bandwidth in the country. Additionally, demand for bandwidth exceeds availability by far. The country has a mobile phone penetration rate of 126% and 40 million smartphone users, one of the highest rates in the MENA region. An easily accessible 3G network has accelerated widespread penetration of the internet, which is why most people initially experience the internet through their smartphone. Over the past few years, the government has encouraged a wider use of the internet among Iranians, hoping to generate the benefits of a more modern economy. However, the internet seemed to be a helpful tool for organising protests against the government. For that reason, some social media platforms and messaging apps have been blocked in the country. In 2018, authorities created what they call a “halal net,” a locally controlled version of the internet.
E-commerce market
Iran has significant potential for e-commerce development. However the market is still small in the country, accounting for only 0.7% of GDP in 2017. Iranian e-commerce accounted for a revenue of more than US$ 18 billion in 2017. About 3% of all transactions in Iran are made through online shops. About 25% of Iranians are shopping online at least once a month, 16% at least once a week, and 5% are doing so on a daily basis. There are currently almost 9,000 active online shops in Iran which have the trust certificate (eNAMAD) from the Iranian e-commerce development centre. Most online shoppers live in urban areas and people living in the province of Tehran count for almost a third of the total number of transactions. Due to American sanctions, Iranians cannot purchase from foreign websites - like Amazon and Ebay - making Iranian websites the most popular ones among online shoppers. The Joint Comprehensive Plan of Action had an important impact on Iran’s business climate, including e-Commerce, as the deal made it easier for investors from outside Iran, though not Americans, to invest in the country. Some of the most popular e-commerce websites in the country include Digikala, Snapp, Pintapin, Bamilo, and Eskano.
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