IranBehind the Internet Shutdown: The Iranian Regime’s Black Market

Behind the Internet Shutdown: The Iranian Regime’s Black Market

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Severe communication restrictions in recent months, imposed under the pretext of war and security concerns, have fundamentally altered the economic and social structure of access to cyberspace. Transforming internet access from a public right into a class-based privilege has led to corruption, rent-seeking, and the destruction of the country’s digital economy.

The Emergence of Digital Apartheid and the Concept of “Internet Pro”

More than 69 days after the blocking of the vital arteries of communication, a phenomenon known as “Internet Pro” has emerged in society. Instead of solving infrastructure problems, this new structure has effectively entrenched a form of digital apartheid across the country. This is no longer merely about simple filtering. Internet access, which should serve as a tool for development, is now traded on the black market at exorbitant prices. This trend reflects the transformation of public services into exclusive privileges for wealthy and influential groups.

The rent-based distribution of bandwidth has left academics and intellectuals struggling behind the regime’s extensive filtering barriers.

If restricting access is rooted in security concerns, then class-based access effectively means selling security to select applicants. This raises the question of how paying 600 million rials (about 315 dollars) can supposedly eliminate security risks for a wealthy individual, while internet access for a student or journalist is still considered a security threat and remains blocked. This comes as the monthly salary of an ordinary worker barely reaches 130 dollars. The divide created by this discrimination could itself become the greatest threat to the stability and long-term security of society.

Underground Economy and Crisis in the Technology Market

Alongside this prolonged shutdown, a corrupt underground economy has emerged that directly targets people’s livelihoods and finances. Tools used to bypass restrictions, which were previously inexpensive, are now sold in some packages for 100 million to 120 million rials (approximately 53 to 63 dollars). According to reports, some citizens spend up to 600 million rials per month to purchase these tools.

Iran’s Economy Under Pressure from War and Internet Shutdowns

The lack of oversight in this market has paved the way for greater exploitation of users. Conditions in the hardware and mobile phone market have reached catastrophic levels, with field reports describing the situation as outright looting. The current distribution system has fully enabled abuse by intermediaries who have access to unrestricted networks.

The Iranian regime speaks of providing support to businesses, yet it has completely ignored a basic economic principle. Even if the seller has access to the network, no online transaction can take place when the customer remains trapped behind filtering barriers. According to official statistics, around 2,000 digital companies can survive under these conditions for only another one to two months. The severe 40% to 70% drop in platform sales has sent silent shockwaves through the country’s already fragile digital economy, with potentially irreversible consequences.

Institutional Denial of Responsibility and the Uncertain Future of the Internet

Reza Olfat Nasab, head of the Union of Virtual Businesses, stated on May 3 that no specific authority is accountable for the internet in Iran. He emphasized that it remains unclear which institution economic actors should negotiate with to resolve their problems. According to him, many businesses have suffered sales declines of 40% to 50%, while some have completely halted operations. Workforce reductions of up to 60% in these companies demonstrate the depth of the unemployment crisis among skilled sectors of society. Dissatisfaction with discriminatory policies has reached its peak among all participants in this field.

Ehsan Chitsaz, deputy communications minister of the Iranian regime, announced on May 2 that decisions regarding this network are made outside the ministry. Meanwhile, Mohammad Hafez Hokmi, an adviser to the minister, reported widespread violations in the implementation of the so-called special access program. He believes mismanagement and misconduct have occurred during the process, leading to the creation of a black market for selling access quotas. These remarks came after revelations that organizational internet access had been illegally sold to ordinary individuals.

The Communications Ministry claims it neither designed these restrictions nor authorized selective access programs. According to officials, the original permits were issued solely to maintain the stability of company services during crisis conditions and prevent disruptions. However, reports by technology websites indicate that the scheme has turned into a black market for the sale of organizational internet quotas.

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