Bandwidth planned to be 4-folded – Iran getting ready for e-banking and e-government
According to the Iranian minister of ICT, the Iranian government plans investments of US$ 18.5 billion in the ICT sector over the period of the sixth five-year development plan 2017 to 2022.
Alongside this investment, the government is planning for the investment of US$ 15 billion in industries related to ICT. The minister of ICT in January 2017 explained the expansion of access to the high-speed internet over the country: “Currently, around 700 towns and cities have access to 3rd generation and around 350 cities have access to 4th generation mobile internet access. We are planning to increase the countries bandwidth which is currently 4 Gb/s up to 17 Gb/s by the end of the year. Therefore we are ready to enter a new phase of change in many areas including banking.”
“At the moment, many ministries are using the National Broadband Network.
The ministry of ICT emphasizes that the development of the National Broadband Network has created more than 100,000 jobs and therefore the electronic government is to begin by February 2017.”
E-commerce in Iran is developing dynamically
Expansion of Internet infrastructure broadens customer base - Intense competition - Uber clone Snapp successful
In Iran‘s e-commerce industry there is a break-up mood. The improvement of the Internet infrastructure has created the necessary technical conditions. The young population sees online-shopping as an attractive alternative to traditional retail. The number of online-shops is already over 20,000 and the supply continues to grow. Tehran is still at the forefront of on-line shopping. But the interest in the other regions is growing.
In Iran, e-commerce has been growing strongly for two years. The breakthrough became possible, especially since the supply of 3G and LTE mobile networks has improved rapidly since 2014. Currently 3G networks are installed in about 600 cities and LTE networks in 200 cities. The transmission speeds are usually between 5 and 6 Mbps.
According to industry representatives, e-commerce is becoming increasingly mobile. The local market research company „E-Commerce Monitor“ (ECM) compiles statistics on e-commerce development based on central bank data. However, e-commerce transactions, which are settled by cash or card payment at delivery, are not recorded here. Data on the volume of these transactions are not available.
According to ECM, the number and value of the Internet transactions 2015/16 increased by 25% compared to the previous year to 191 million, or 16% to US $ 17.5 billion. In monthly terms, 15,801 „Internet Payment Gateways“ (payment interfaces for e-commerce traders) were active on an average of 2015/16 (2014/15: 13,325).
Tough competition in the e-commerce sector
It is estimated that some 20,000 online shops are currently located in Tehran alone. The supply chain is correspondingly broad. With the help of the Rocket Internet company in Berlin, several e-commerce platforms have been set up in Iran, including Bamilo/Mozando, Zoodfood/Bodofood, Snapp/Taxi Yapp and Eskano. Today, however, Rocket Internet is no longer involved in these projects. The four platforms are part of the Ideh Novin Tejarat Romak Holding.
Uber clone Snapp successful in Iran
In the autumn of 2014 „Taxi Yaab“ (taxi finder) started in Tehran and was later renamed Snapp. The Iran Internet Group secured a financial guarantee of $ 20 million for Snapp in October 2016. The money comes from the South African company Mobile Telephone Networks (MTN), which is the shareholder of Iran Internet Holding and also holds a 49% stake in the Iranian mobile operator MTN Irancell. MTN and Rocket Internet, in 2013, have founded the Middle East Internet Holding (MEIH), which is represented with Easy Taxi in Bahrain, Jordan, Kuwait, Qatar and Saudi Arabia.
Snapp is currently only active in Tehran. According to CEO Shahram Shahkar, Snapp currently employs about 130 people, works with 10,000 drivers and has about half a million customers. Meanwhile, the Snapp app is also available in English. Snapp is rated very positively by the customers.
Source: GTAI Germany Trade & Invest, Dec. 2016