In a push toward materializing a digital economy, Iranian President Hassan Rouhani inaugurated several infrastructure projects on information and communication technologies worth 22.8 trillion rials ($159 million).
The inaugural event was held on Thursday, when Rouhani, accompanied by ICT Minister Mohammad Javad Azari Jahromi, held a videoconference with ICT officials and media reporters.
The largest data center in the country was the first project launched, the ministry’s website reported.
Executed by major mobile operator MTN-Irancell with an investment of 11 trillion rials ($62.5 million), the data center has 407 racks that add a 25% data storage capacity.
Rack is a type of physical steel and electronic framework that is designed to house servers, networking devices, cables and other data center computing equipment.
The project contributes to extending Iran’s National Information Network. NIN was initially launched in August 2016 as an alternative independent network with content compatible with Islamic values. It is reportedly designed to facilitate Iranian users’ access to indigenous content.
The data center is aimed at extending a helping hand to data security and independence, the report says.
Implemented by internet service provider Asia Tech, cloud computing services based on NIN is the second infrastructural project, the first phase of which was inaugurated at the event.
Cloud computing is the on-demand availability of computer system resources, especially data storage (cloud storage) and computing power, without direct active management by the user. The term is generally used to describe data centers available to many users over the internet.
Providing high-quality cloud computing services is one of the prominent requirements for developing digital enterprises and tech startups, without which promoting the digital economy and offering tech-based services is practically impossible in today’s world.
Executed by major mobile operator MTN-Irancell with an investment of 11 trillion rials ($62.5 million), the largest data center launched in the country has 407 racks that add a 25% data storage capacity
The project added 100 terabyte computing memory and 3 petabyte data storage capacity. The services are available for the technology ecosystem through an official center in Tehran’s iconic Milad Tower.
When fully operational, the project would have spent 8.5 trillion rials ($48.2 million) with more branch centers in Mashhad, Shiraz and Tabriz.
The third and last project launched is a website through which people can access internet television via cable internet connection. The scheme is the result of a collaboration between local video-on-demand providers and ISPs with a private investment of 800 billion rials ($4.5 million).
All cable internet subscribers can enjoy month-long free access to internet TV by registering with the website Ictgifts.ir.
Besides the projects, a support plan was also introduced for fledgling startups hit by the coronavirus outbreak in the country.
Reported in mid-February in Iran, the virus has so far claimed 7,627 lives out of 143,849 infected.
With the Covid-19 outbreak distorting the Iranian startup ecosystem’s prospects, the state and the private sector funds are extending an aid package worth 2.5 trillion rials ($14.2 million) to 5,000 virus-hit startups.
The package has been proposed and managed by the ICT Ministry and Iran National Innovation Fund affiliated to the Vice Presidential Office for Science and Technology.
Digital Economy Materializing
Speaking at the inaugural event, President Hassan Rouhani praised the noticeable achievements in the country’s scientific fields, stressing that the domestic traditional economy is converting into a digital economy.
Referring to the key role of the internet in providing the society with agriculture and health services, Rouhani said, “By utilizing the internet and cyberspace in the economic sphere, tasks are carried out in a faster, more accurate and more cost-effective manner. Plus, this is a more reliable way of doing work.”
He further said people have realized the importance of IT developments amid the challenges created by the novel coronavirus outbreak, as numerous day-to-day services have been provided using IT and cyberspace.
Rouhani also underlined the role of IT in political affairs, such as election campaigns, informing people and promoting public participation in elections.
“Transparency and fighting corruption are important issues that could be addressed through virtual space rather than through traditional mechanisms,” he said.
Rouhani noted that if Iran wants to compete with other countries in the economic sector, it must develop and help materialize it.
Statistical Report
The speeches were narrowed down to details when the ICT minister provided a statistical report on the development of NIN in different sectors.
“Digital services are one of the most potential sectors for growth and for providing job opportunities,” he said
Jahromi added that the digital economy accounted for 3.68% of Iran’s GDP in 2013-14. Its share increased to 4.11% in 2017-18 and jumped to 6.5% in 2019-20.
Underlining the remarkable expansion of NIN, Jahromi said the capacity of transport layers in the network was 680 gigabytes per second in 2013-14.
“Two years later, the capacity reached 4,000 gigabytes per second and it expanded to 18,000 gigabytes per second in 2019-20,” he said.
“The capacity of NIN data centers in terms of their active racks has increased from 210 to 1,830 since 2013.”
The connection speed for mobile and cable internet subscribers was respectively 0.218 and 0.256 megabits per second in 2013-14.
The speed went up to 2.5 and 4.8 megabits per second respectively in 2017-18 and to 10 and 6.2 in 2019-20.
Shifting focus on internet access in rural areas, Jahromi said data coverage has increased from 0 to 89% since 2013.
In 2018, when the United States reimposed sanctions against Iran, the country faced economic challenges resulting in a total added value of 3.7% in the economy. The ICT sector registered a 31.3% growth rate in the same year.
Noting that all these achievements have been made because of young talents helping develop the technology ecosystem, Jahromi said, “Information technology is one of the important tools for raising productivity. All the figures indicate that digital economy is a potential alternative for the oil-based economy.”
Jahromi concluded with a brief account of the ICT sector’s agenda of projects planned for the current Iranian year (ending March 2021). They included the launch of more data centers, extension of data coverage for rural spots, designing a local operating system for mobile phones and the further development of communication infrastructures.
