Iran is among the top three most prospective broadband Internet markets, based on fixed and mobile broadband growth since 2008 and size of the Internet user base, a new report said.
According to Euromonitor International, the two other countries are Nigeria and Indonesia.
The three are witnessing a rapid connectivity program that is allowing their large populations to become regular consumers of online services.
“As rural and underserved areas gain access to modernized broadband connections, these markets provide huge opportunities in the uptake of e-commerce, social media and digital subscription products,” the report said.
On Iran, the report said, low incomes and outdated infrastructure have meant that Iran has one of the largest dial-up subscription markets in the world, set to stand at 1.6 million in 2014. This has traditionally been a major bottleneck in the consumption of online services by local consumers, as slow connection speeds are an impediment to video streaming, gaming and even e-commerce transactions.
However, Iran is undergoing rapid dial-up-to-broadband substitution. Fixed broadband subscriptions have rocketed by 1,350% over the 2008-2013 period and by 2030 more than two-fifths of homes are expected to have broadband connections.
Opportunities and Challenges
The report said many emerging markets are turning to mobile broadband connections rather than fixed options, but due to cost savings in infrastructure, the wireless base remains weak in Iran.
Mobile-tailored products based on broadband connectivity will struggle to find consumers outside of major urban centers.
However, as relations between Iran and the West have thawed, there are golden opportunities in market entry for broadband operators and providers in the near future. Thus far, only China and Russia have been active in the Iranian telecom market.
