65 days of digital isolation: “Ownerless internet” pushes Iran’s e-economy toward collapse

In stark remarks reflecting the deep despair in the business sector, Reza Olfat Nasab, head of the Virtual Business Association, criticized the current state of the internet. He described the internet in Iran as having become “ownerless.”

Olfat Nasab pointed to the absence of any specific entity taking responsibility for this situation or providing a timeline for a solution. He also emphasized that the business environment for digital companies has become “ambiguous and unpredictable.” Furthermore, there is no clear prospect of improvement in the near future.

The bleeding of losses and forced unemployment

Alfat Nasab explained that online companies have been hit hardest. They have experienced a sharp and continuous decline in revenue and a rapid loss of databases and customers. Furthermore, supply chains and international trade communications have been disrupted.

He warned that if this trend continues, it will inevitably lead to a widespread wave of closures of technology companies. This will result in a dramatic increase in unemployment rates among young people. It will also severely weaken the digital economy infrastructure that took years to build. Ultimately, the crisis will extend beyond technology to impact the entire national economy.

General isolation and “white lists” of close associates

On the technical front, the independent network security monitoring organization Netblocks documented the scale of the disaster. It reported that after 1,536 hours of digital blackout, the general Iranian population remained completely cut off from the outside world. The report revealed a practice of “digital discrimination,” whereby authorities grant special access via so-called “whitelists” to a limited number of individuals and entities close to decision-making circles, while the rest of society and its economic institutions remain paralyzed.

This collapse comes at a time when the Iranian toman is experiencing a historic decline. This makes the internet blackout a “coup de grâce” for the private sector, which had represented a glimmer of hope for growth away from the traditional oil-based economy.

With the continuation of the “national internet” policy and the country’s isolation from the global network, millions in Iran face an uncertain future.