The cost of communication services, establishment of public WiFi access points and expansion of the fiber-optic network are some subjects that held center stage at the Iran Telecom 2018.
The 19th round of Exhibition of Telecommunications, Information Technology, and Innovative ICT Solutions (Iran Telecom 2018) opened on Monday, with company bosses addressing public concerns about increasing communications tariffs and infrastructure development plans.
During the inauguration ICT Minister Mohammad Javad Azari-Jahromi took questions about mobile communication tariffs and cellphone prices, the ministry website reported.
“The recent hike in rates of basic mobile communication services is within the law,” he reiterated. The minister and his aides have made similar comments in the past several days.
In recent weeks operators have been trying hard to convince customers to subscribe long-term plans so as to get their hands on some much-needed cash to maintain their operations.
Major mobile operators MTN-Irancell and Mobile Telecommunications Company of Iran (MCI) increased rates of basic phone services up to 80% in some cases and jacked up prices of Internet packages by 8 to 10%. Following the changes in pricing policies, monthly and seasonal packages now cost relatively less than the daily packages.
With the value of rial plummeting to unprecedented lows, local businesses have been forced to raise prices and telecom firms are no exemption.
Azari-Jahromi says his ministry will try to help firms cut costs and provide them incentives to forestall further price hikes. He tried to reassure subscribers of landline services by saying, “Tariffs of landline communication services are not to be increased.”
He noted that the new US sanctions have created extra burdens and added to overheads of communications industries. He appealed to operators to curb expenses where possible during the current hard times.
>Cellphone Market
In recent months as the national currency gained back some power after months of solid drubbing, prices of mobile phones declined by almost 20%. Industry insiders say prices could fall further if the supply side does it fair share.
Business insiders have often said that the bottlenecks in the confused supply chain is the main culprit behind skyrocketing prices of cellphones in the impressive and growing domestic phone market.
Azari-Jahromi addressed the issue at the annual expo. “During normal times more than 1 million mobile phones are sold in Iran every month. But now supply is significantly lower than demand.”
He said 700,000 cellphones are stuck in customs warehouses, due to the regularly changing import polices and the almost daily government circulars related to forex allocations.
The minister, however, admitted that the release of the 700,000 cellphones would only be an ephemeral answer to the chaotic market. “The limits imposed on mobile phone imports should be removed and all the firms that can offer after sales services should be eligible to bring in handsets.”
The Industries Ministry oversees mobile phone imports.
>Communications Infrastructure
The minister pointed to the significant inroads Iran has made in expanding its mobile communications infrastructure. “Currently, 3G and 4G coverage has been established in all cities, many intercity roads and highways have been connected to the network and the number of rural areas with access to the services has increased significantly”
Last year 35% of villages had 4G coverage, the number now is 54%.
He noted that progress in communications technology has not been impressive and the landline sector needs a boost. “Over 400,000 km of fiber optic cables need to be laid in the country to enhance infrastructure.”
>Public WiFi
Hoping to increase people’s access to speedy Internet services and boost their revenues, major communications operators have started installing public WiFi access points.
One of the leading firms in this area is the Telecommunication Company of Iran. Majid Sadri, the CEO says, “Establishment of public WiFi access points across the country is on top of the TCI agenda. So far, 270 public hotspots have been launched by the firm and we are poised to introduce another 1,000 more points.”
A public WiFi access point is a physical location where people may obtain Internet access, via a wireless local area network (WLAN) using a router connected to an Internet service provider. Through the service, users will have access to the Internet for a limited time and bandwidth. Operators and ISPs set up such access points to promote their services and increase profits.
Sadri said the TCI is looking forward to expanding its collaboration with local startups and knowledge-based firms, saying that Telecom 2018 can help create the conditions for forging closer professional relations.
Held at Tehran’s International Fairground, Telecom 2018 will end today. In addition to state bodies, the event hosts major domestic mobile operators MTN-Irancell and Mobile Communications Company of Iran along with more than 230 other firms. The first Iran Telecom exhibition was held in 2000.
