Shutdown shock: Iran’s digital economy hemorrhages up to $15m daily
Internet disruptions over the past 50 days have inflicted heavy losses on Iran’s digital economy, with damages estimated at $10 million to $15 million per day, a senior industry official said.
“The estimates are fairly reliable and the losses are very significant. In my view, we are incurring at least $10 million to $15 million per day in direct, indirect and opportunity losses due to the country’s internet situation, meaning close to $1 billion in damage to the economy,” Abbas Ashtiani, head of the blockchain commission at Iran’s ICT Guild Organization, told IRNA.
Internet access across Iran was largely shut down from the early hours of the February 28 US-Israeli attack, with connectivity dropping to around 2% of pre-war levels, according to monitors.
Since the early days of the April 8 ceasefire, authorities have gradually expanded limited access to selected individuals and entities, but most of the country’s population of more than 90 million remains offline during the war with the United States and Israel.
Ashtiani said restoring losses would require prioritizing internet access as a key driver of economic growth. He added that compensating for the damage to digital businesses would not be possible without investment in internet infrastructure.
“Internet stability, speed and investment in infrastructure quality are in fact investments in future economic development and GDP growth,” he said.
He said businesses suffered significant economic damage during the disruptions, describing the period as a major missed opportunity.
“Without internet access, businesses cannot meet their international data needs, and when people lack access, customers also face difficulties. Considering both factors, the damage caused by the internet disruption has been substantial,” he said.
Ashtiani said limited access to platforms such as Gmail and Google has had some positive effect, but remains marginal.
“While the impact is positive, it is not enough to compensate for the damage. Returning to previous conditions and recovering losses will take a long time, and shortening this period requires investment in improving infrastructure and internet quality,” he said.
He added that smaller businesses and online shops have been affected differently, with those operating on domestic platforms recovering faster, while those reliant on platforms such as Instagram have suffered the most.
Ashtiani said representatives of digital businesses have raised their demands with the government and the communications ministry, expressing hope that measures — including restoring broader internet access for businesses and the public — would be implemented soon.