Iran eases internet curbs for businesses as blackout enters third month

Citizens have been relying on restricted and costly tools to bypass online limitations

Iran's top security body has approved a temporary scheme for businesses to access the global internet with fewer restrictions, a government spokesperson told Iranian media on Tuesday, after the authorities had imposed a blackout since the start of the war against the U.S. and Israel.

Most Iranians have been unable to access the worldwide web for the last 60 days according to the internet observatory NetBlocks, with only a few citizens having access to expensive and advanced VPNs that circumvent the restrictions.

"The Supreme National Security Council approved the 'Internet Pro' scheme to preserve businesses during times of crisis," said government spokesperson Fatemeh Mohajerani. She did not say when the new measures, which had not been previously disclosed by the government, had been introduced.

"Once the situation is announced to be normal by relevant authorities, the situation of the internet will also change," she added, stressing that the government was receptive to people's demands and believed in access to the internet as a civil right.

Authorities initially imposed an internet blackout from January 8 in response to nationwide anti-government protests, with connections gradually coming back to normal in February until a new blackout was initiated following the start of U.S. and Israeli strikes against Iran on February 28.

In normal times, access to the global internet remains heavily restricted via censorship of many websites, while authorities are increasingly relying on an intranet to provide connected services without relying on the worldwide web, notably for schools which are currently following an online curriculum.

Economic Disruptions

"Internet Pro" underscores a difficult balancing act for authorities, who say restrictions are needed for security during the conflict but face growing economic disruption and public frustration as millions rely on stable internet access for work and daily life.

Internet outages in Iran are inflicting heavy economic damage, with daily losses estimated at $30 million to $40 million in direct costs and up to $80 million including indirect effects, according to Afshin Kolahi, head of the Iran Chamber of Commerce’s knowledge-based economy commission, as cited by local media.

Reuters was unable to independently verify the figures.

More broadly, many Iranians have lost their jobs since the war started two months ago and prices have surged in a country that has suffered damage to factories, energy infrastructure and transport links.

The internet disruptions are hitting a wide range of sectors beyond the digital economy and weighing on the labour market, threatening incomes and jobs for many workers, particularly freelancers and small businesses reliant on online activity.

The "Internet Pro" scheme is meant to solely benefit businesses as a temporary response to crisis conditions, but state media quoted the country's telecommunications regulator as saying on Monday that some operators had violated the framework, with investigations under way.