Iran International
A nationwide internet outage likely imposed by the Tehran beginning just after midnight on July 6 has deepened concerns among a weary public over the already parlous state of the economy and access to information.
Confirmed by global observatory NetBlocks, the blackout caused a near-total loss of connectivity. Though partial access later returned, traffic remains just 20% of pre-conflict levels.
The latest shutdown follows a string of disruptions that began during the 12-day June conflict with Israel, when authorities restricted access under the guise of national security.
Iran’s Telecommunications Infrastructure Company has acknowledged the incident but offered no explanation. Meanwhile, accounts linked to officials remained active, fueling claims of selective, politically-driven censorship.
Economic shock, mass disruption
Prolonged outages are dealing vast damage to Iran’s digital economy.
The Iran Internet Businesses Guild Association estimated over $1.5 million in hourly losses and warned more than 400,000 small and mid-sized businesses are at risk.
The Tehran Union of Internet-Based Shops cited the vulnerability of small digital vendors and service providers.
“Every hour of blackout brings almost a $1.5 million loss to small businesses,” it said.
Sweden-based economist Ahmad Alavi called shutdowns “one of the most economically damaging decisions a government can make,” especially in a low-productivity economy where many rely on digital services.
“These blackouts drive both human and financial capital out of the country,” Alavi warned. “Freelancers, programmers, and entrepreneurs facing unstable access will increasingly emigrate or transfer assets abroad.”
“This is more than a technical glitch,” said Alavi. “It’s a full-blown economic shock affecting production, finance, investment, and public services.”
Mahtab Gholizadeh, a Berlin-based economic journalist, notes that with over 60% of the population under 30, Iran’s youngest and most connected generation, is being cut off from opportunity and global networks.
Resistance, risk and digital Control
Amid growing restrictions, some entrepreneurs have turned to Starlink satellite internet to stay connected—despite legal bans and the threat of imprisonment.
Mohammad, a small business owner, is one of them. “I know the risks,” he said, declining to use his full name due to likely official reprisals.
“But I’d rather face them than die in poverty.”
Many others, particularly in handicrafts and beauty, are redirecting efforts to regional export markets in the Persian Gulf.
Meanwhile, the government continues to promote domestic messaging platforms like Rubika, Baleh and Eitaa, but public uptake remains low. Users and businesses cite privacy concerns, limited features and poor engagement.
Shohreh, an entrepreneur in the beauty industry, tried moving some of her work to the Iranian app Soroush after international platforms were blocked but noted little customer traction.
“Many of our products are considered illegal on these networks,” she said. “Let alone finding proper channels to market or sell them.”
Unequal access, declining trust
The internet crisis has revived a controversial push for tiered access, giving preferential connectivity to state agencies and approved professionals while limiting the general public.
The idea has resurfaced through recent proposals from IT trade groups, but critics say it would formalize digital inequality. Tech outlet Zoomit called the idea “digital apartheid.”
Iran remains one of the world’s most censored internet environments. Around 84% of users rely on VPNs to get online, and over 90% engage with blocked global platforms.
Analysts warn that repeated shutdowns are fueling brain drain, startup collapse, and a crisis of investor confidence.
In an open letter, the Iran Internet Businesses Guild Association urged authorities to stop DNS tampering and bandwidth throttling, warning of systemic collapse.
“The normalization of blackouts,” said Alavi, “is isolating Iran from the global digital economy and destroying what little trust remains in its future.”
