After mobile operators MCI and MTN-Irancell more than doubled the price of their internet services, the government has called on them to reverse the price hike that can curb Iranians' access to the internet.
Two weeks ago, Mobile Telecommunications Company of Iran and MTN-Irancell increased internet prices by 100%.
As per the law, the Communication Regulatory Authority, which is affiliated to the ICT Ministry, sets prices for communication services and ratifies a price hike. However, when MCI and Irancell had applied for a price hike permit, CRA had rejected them.
Following the price increase, CRA chief, Hossein Fallah Joshaghani, took to Twitter two weeks ago to criticize the move. He called the price increase an “infringement”, declaring that customers “must be reimbursed” and the internet operators should be fined.
According to Joshaghani, it is a bad time for increasing prices since Covid-19 lockdowns and remote-working have increased public reliance on internet services.
Later, Iranian President’s Chief of Staff Mahmoud Vaezi called on the judiciary in letter to take action against MCI and Irancell, stating that the “100% price hike is illegal”. The letter includes a line from President Rouhani: “Prices should not be increased arbitrarily. Take action.”
Despite widespread criticism, both operators remained silent.
Later, CRA announced that the operators have been fined 20 billion rials ($80,000). Comparing the fine with the firm’s revenue, observers believe it would not be enough to make the operators budge.
For instance, MCI’s net income was 38,190 billion rials [over $166 million] during the fiscal year that ended in March 2019.
CRA's Fallah has also warned on Twitter: “There will be further penalties, if operators don't reverse the price hike.”
Some social media users have also alleged that the price hike is part of a "cultural revolution" aimed at curbing Iranians’ access to the internet. Others have recently speculated the Islamic Republic is testing new online censorship tools. Evidence is yet to substantiate both allegations.
Questions over net neutrality in Iran have also emerged. Even after increasing prices, operators highlighted that using local services is 50% cheaper. The announcement fueled speculation about a state plan for curbing the free flow of info.
Subsidizing local online services has been talked about since 2017, but the decision is fundamentally against net neutrality and raises eyebrows among internet freedom experts.
