A new report by Tehran’s E-Commerce Association reveals the failure of censorship policies and the growing dependence on unsafe workarounds among Iranian users.

A recent report published on Sunday, August 3, 2025, by the Tehran E-Commerce Association paints a stark picture of the state of internet access in Iran. While shedding light on the growing digital divide and economic consequences of censorship, it also confirms what many citizens and experts have long known: the regime’s internet restriction policies have largely failed.

Based on technical data, expert analyses, and a survey conducted by ISPA (Iranian Students Polling Agency), the report ranks Iran 97th out of the world’s top 100 economies in terms of internet quality. The country scores 84/100 for speed issues, 92/100 for instability, and 99/100 for restrictions, indicating that the internet available to ordinary Iranians is not only slow and unstable but also heavily censored.

Massive Turn to VPNs Signals Policy Failure

One of the most telling findings in the report is the dramatic increase in the use of VPNs and circumvention tools. Over 86% of all internet users—and nearly 94% of those under 30—now rely on VPNs to access blocked content. Before the 2022 wave of mass censorship, fewer than 40% needed such tools. This shift underscores a central paradox: the more the regime tries to restrict access, the more users resort to insecure and potentially dangerous alternatives.

Instagram remains the most popular social platform among Iranians and is vital to small and home-based businesses. The report warns that continued restrictions or a full ban on Instagram could threaten the livelihoods of hundreds of thousands of families.

Critical Technologies Obstructed

The damage extends beyond social media. Key internet protocols such as HTTP/3 and IPv6—essential for modern, fast, and secure web performance—have been deliberately disrupted. As a result, the round-trip time (RTT) for data transmission has reached 295 milliseconds, a figure typically found only in countries facing war or severe infrastructure collapse.

This degraded connectivity affects nearly every aspect of life in Iran: from video calls and remote education to online banking and gaming. Startups and tech firms report severe service instability due to constant outages, further fueling the brain drain of skilled professionals.

Rise of Starlink and the Limits of Control

In a notable development, the report highlights growing interest in Starlink satellite internet. During the 12-day war between Iran and Israel, the use of Starlink spiked among Iranians seeking reliable access. Despite technical and financial challenges, many users turned to this alternative to maintain connections with the outside world, once again demonstrating the deep disconnect between official policy and public demand.

Iran Access Policy and the Global Disconnect

Another controversial policy, known as “Iran Access”, has blocked users outside Iran from reaching domestic websites. Roughly 80% of government and banking sites are now inaccessible from abroad. Justifying the move as a cybersecurity measure, regime authorities claim it protects national systems. However, the Tehran E-Commerce Association points out that major cyberattacks on Iran’s financial infrastructure have originated from within the country, rendering the policy not only ineffective but counterproductive.

This artificial digital isolation, the report warns, is pushing Iran further into global digital marginalization, stifling innovation and closing off opportunities for collaboration.

Tech Industry Pushback and Demands for Reform

In response to the worsening situation, over 100 Iranian tech companies have signed a joint statement demanding immediate reform of internet policies. Their key demands include:

Unblocking social media platforms and educational websites
Increasing international bandwidth
Lifting restrictions on modern internet protocols

The companies argue that the current approach is not only ineffective in securing the internet, but actively harms the economy by promoting black markets for VPNs, spreading malware, and driving currency outflows worth billions of tomans.

Censorship as a Political Tool

The report doesn’t shy away from highlighting the political motives behind internet repression. Following the nationwide protests of 2022 and during the recent conflict with Israel, regime authorities used large-scale internet shutdowns as a tool of social control. These actions disrupted access to information and silenced journalists and civil society actors, forcing millions to rely on unsafe tools just to stay informed.

This cat-and-mouse game between state censorship and user resistance has only intensified public distrust and increased security costs—without achieving its intended goals.

A Vicious Cycle

The Internet and Infrastructure Commission of the association concludes that the regime is caught in a self-defeating cycle: extensive filtering leads to circumvention, which prompts even more aggressive policies—like “tiered internet”—that fail to address the underlying issues. The result is a digitally isolated, economically weakened, and socially frustrated society.

As the digital curtain tightens, the question remains: How long can this regime suppress connectivity without collapsing under the weight of its own contradictions?