Iran Telecom Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023-2028)

Key Highlights

• The transition to 4G and 5G is still rising in the country due to expanding new networks and the expansion of the device ecosystem. Key players in the telecom market are investing in expanding their network capacity and improving the quality of mobile broadband services through deploying LTE networks.
• 5G services are slowly deploying in Iran. For Instance, MTN Irancell launched 5G services in Tehran. In the Future, all the customers will slowly migrate from 3G and 4G networks to the 5G network.
• The government of Iran is planning to extend its FTTH (fiber-to-the-home) service to more than 20 million premises by the end of 2025. Such a government's timely initiative will further support the growth of the telecom market.
• Fixed broadband penetration will grow over the next five years, driven by the efforts from the operators and the government to expand broadband coverage across the country. For Instance, TCI has laid fiber optic cables in several areas in Tehran and other major cities, replacing copper cables with fiber cables to offer high-speed broadband services for customers.
• During the COVID-19 pandemic and post-COVID-19 scenario, most people preferred work-from-home mode, thus increasing broadband subscribers. Wireless and wired broadband services can provide high-speed internet services. Key players in the market focused on expanding their broadband services that support 5G networks.

Iran Telecom Market Trends

Rising Demand for Wireless Services

• Across the Middle Eastern region, Iran has the largest population. Since the population is more, the demand for wireless telecom services will significantly grow.
• Iran's telecom market made further strides in expanding its network capacity with fiber cable-based wireless deployments. For Instance, Shatel offers high-speed Internet Service on a wireless platform using PTMP (point-to-multipoint communication) Technology.
• According to TCI, the mobile broadband penetration rate was 61.25% last year. In the future, the demand for wireless broadband services will grow significantly and thus create new growth opportunities for the telecom market.
• Key players in the telecom market are taking initiatives to deploy 4G wireless services in Iran. For Instance, MTN Irancell offers customers 4G and 4.5G internet services. In the future, the demand for deploying 5G wireless solutions will significantly grow with the increasing adoption of smartphone connections.
• Government authorities are working with private telecom service providers to expand wireless broadband connections. According to Ookla Speedtest Global Index, Iran ranked 147th with a median fixed broadband download speed of 10.44 Mbps in September 2022.

Rising Demand for OTT and PayTV Services

• The contribution of local cable tv and PayTV services providers is high in Iran. Since Iran has a regulatory framework, not all OTT service providers are allowed to provide OTT services in Iran.
• Pay-TV services revenue will drop in the next five years because of a steady decline in DTH subscriptions and emerging competition from OTT service providers.
• According to TCI, Iran's Mobile penetration rate last year was 88.7%. Since the mobile penetration rate is growing significantly over the next five years, the demand for OTT services will grow.
• According to GSMA, the smartphone adoption rate in the country was 69% in 2021, and it is expected to reach 76% in 2026. Adults in the country are increasingly using smartphones for entertainment at home. The increasing smartphone adoption will further increase the demand for OTT services.
• Over the next five years, customers will slowly migrate from PayTv services to OTT services, thus creating new growth opportunities for the telecom market. According to Ookla Speedtest Global Index, Iran ranked 54th with a median mobile download speed of 35.36 Mbps.

Iran Telecom Market Competitor Analysis

• July 2021: MTN Irancell increased its new spectrum in the 2.3GHz band. The new spectrum band will support 4G services.
• June 2021: Iran's ICT Ministry began controlling the Telecommunication Infrastructure Company (TIC). The government of Iran took full control of the country's fixed internet infrastructure with the help of the Telecommunication Infrastructure Company (TIC).

Additional benefits of purchasing the report:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support