The Information and Communications Technologies Ministry and its affiliated organizations will get 38.1 trillion rials ($147.67 million) next year, according to the 2021-22 budget bill submitted to the Majlis on Wednesday.
In the proposed budget, published on the website of the Plan and Budget Organization, the ministry’s funding for the coming fiscal year is up 4.76% compared to 36.37 trillion rials ($140.69) in the current year that ends in March 2021.
As per the government’s proposal, the ministry’s operational expenditure is set to increase by 14.6% compared to this year, reaching 6.87 trillion rials ($26.57 million) from 5.99 trillion rials ($23.17 million), Peivast.com reported.
Funds for acquiring capital assets by the ICT Ministry have also increased by 0.3% to 31.23 trillion rials ($120.81 million) from last year’s 31.13 trillion rials ($120.42 million).
The budgetary figures can change, depending on the approval of lawmakers and the verification of Guardians Council before it becomes law.
The ministry is expected to largely spend the budget on developing communication infrastructure, ICT services and functions, space and digital technologies, as well as funding research projects and commercializing new ideas.
The ICT sector’s revenue in the coming fiscal year is forecast to reach 334.76 trillion rials ($1.2 billion). It is derived from a variety of sources, including commercial online platforms, landline telephony, mobile and internet subscriptions, permits issued by Iran's High Council of Cyberspace, radio frequency usage, electronic services to public and private entities, e-commerce services, space science activity permits and mobile and console gaming.
E-Commerce
Although the proposed budget bill does not have a separate section for electronic commerce, data retrieved from different sources show that the budget earmarked for the sector equals 252 billion rials ($975,000), up by 130 billion rials ($503,000) compared to the current year’s budget.
Based on the bill, the E-Commerce Development Center will receive 268.2 billion rials ($1.03), of which 81.2 billion rials ($314,119) constitute the capital budget and 187 billion rials ($723,404) are earmarked for expenditure.
The center received 118.94 billion rials ($460,116) in the current Iranian year, of which 11.3 billion rials ($43,317) formed the capital budget and 107.64 billion rials ($416,402) the operational expenditure.
The center is expected to earn 2.14 trillion rials ($828,000) from different sources.
ICT Ministry’s Efforts
The significant expansion of ICT infrastructure and internet connectivity across the country are among the outstanding achievements of ICT Ministry over the past few years.
Broadband internet penetration rate has reached 94% while the services were only available in 22% of the country eight years ago, a deputy ICT minister said.
According to Amir Nazemi, who also heads the ministry’s Information Technology Organization, 81% of Iranians use the internet at least once a week.
“The figures show a remarkable progress in Iran’s ICT development since Hassan Rouhani began his first presidential term in 2013. This has been achieved through the ICT Ministry’s efforts for expanding and upgrading communication infrastructures throughout the country, especially in less developed areas,” he added.
Nazemi underlined the fact that extension of internet services depends both on infrastructure and content availability, “which means that internet access can be called extensive only when people from all walks of life can use the service in their everyday life”.
“In recent years, the International Telecommunications Union has ranked Iran among countries with high ICT development,” he said, adding that the achievement should be an incentive for officials to make their best efforts for advancing the status quo.
Nazemi noted that broadband internet is increasingly intertwined with the daily functions of modern life, as it is supporting economic development initiatives, transforming agriculture, improving healthcare and upgrading transportation.
The Iranian state’s extensive investment in the development of ICT infrastructure in rural areas over the past few years has boosted their quality of life.
Providing a brief report on communication development earlier in October, President Rouhani said the number of rural areas with access to ICT services, especially internet, through the National Information Network has reached 35,519.
This figure was 18,000 in 2017 and literally zero in 2013. NIN is an independent network whose content is locally accessible and compatible with Islamic values.
ICT Development Plans
ICT authorities say communication and internet access infrastructure will be further developed in rural areas by the end of the current fiscal year (March 2021).
In South Khorasan Province, work is underway to connect 21 villages in Boshrouyeh County in the coming months.
Mostafa Behi, the head of the provincial ICT organization, told reporters that four ICT stations have been set up in Boshrouyeh to provide high-speed broadband internet for rural areas.
“The stations will become operational, as soon as they are equipped with the necessary gear,” he said.
Ladan Mahdavi, the head of ICT organization in Markazi Province, said officials have announced that since 2013, the number of villages with internet connection has tripled and reached 1,082, accounting for 93% of all villages in the province.
As planned, she added, more areas are on the connection list this year.
According to the Communications Regulatory Authority, the installation of 1,250 ATMs has facilitated micro banking services in rural areas.
These teller machines are expected to increase to 2,250 by the end of the current fiscal year.
CRA had reported that by June 21, the number of registered broadband internet subscriptions reached 82.6 million, 73.3 million of which used mobile internet connections and 9.2 million were connected to landline internet.
The data show internet service penetration rate has reached 98.33%, registering an 8.33% increase compared with that of last year.
The ICT Ministry plans to provide all villages with over 20 households with access to speedy connections by March 2021.
These efforts are in line with the Universal Service Obligation Plan, proposed by the ministry, for providing broadband internet access to rural areas.
Officials believe that increasing the access of users, corporations and organizations to the internet can increase economic productivity and promote social welfare. Internet access boosts traditional business activities and interactions via new strategies.
Rural craftsmen and farmers in Iran are now able to conduct their businesses through online platforms, directly interact with customers and exclude the role of middlemen.
The promotion of ICT in rural areas also helps build novel industries and businesses.
