Iran internet shutdown tops 1,000 hours, economy loses millions daily

More than 1,000 hours of internet shutdown in Iran is severely impacting small businesses and startups, with officials estimating losses of at least $35 million per day, Iran International reports.

The disruption has cut off companies reliant on global connectivity, ranging from e-commerce retailers to freelance service providers. With access largely restricted to domestic platforms, many users are unable to reach essential global tools such as search engines, email services and widely used social media networks.

Iran’s digital economy is estimated to account for around 5% to 6% of the country’s gross domestic product, underscoring the scale of the disruption.

Communications Minister Sattar Hashemi said the shutdown is costing more than $35 million per day—approximately $1.5 billion since the beginning of the current crisis.

Independent estimates suggest the impact may be significantly higher. Afshin Kolahi, a representative of Iran’s Chamber of Commerce, said total daily economic losses, including indirect effects, could reach $80 million.

Authorities say the restrictions are necessary to counter cyberattacks targeting government infrastructure. However, many Iranians believe the measures are also aimed at preventing the spread of protests.

Small businesses have either shut down or are on the brink of collapse, with millions of workers partially or fully pushed out of economic activity.

Entrepreneurs who previously relied on platforms such as Instagram, Telegram and WhatsApp to reach customers have been disconnected for more than six weeks. For many, shifting to domestic platforms feels like “starting from scratch.”

The impact is especially severe for businesses whose websites are hosted abroad. With only domestic domains widely accessible, many firms have lost access not only to customers but also to backend systems and critical data.

Home-based producers—many of them women—who depend heavily on social media for sales have also been hit hard. Many had already lost customers during the 12-day war in June and earlier unrest this year.

Some entrepreneurs say the shutdown has completely wiped out their income.

Amir, a YouTube podcaster, said his earnings from YouTube, Instagram and other platforms had fallen to zero.

“I am completely bankrupt,” he said. “I can’t pay my loan installments and have to sell my equipment.”

Another user running an embroidery workshop said the shutdown forced layoffs: “Until forty-something days ago, I had 37 employees. Now I’ve only been able to keep five.”

In response to growing pressure, authorities have introduced a limited system known as “professional internet.”

Under the program, business owners can apply for unfiltered internet access via their SIM cards by submitting documentation and paying a higher fee. However, the access is restricted to the individual subscriber and does not extend to customers.

Critics argue the measure does little to support businesses whose customers remain offline.

“They still don’t understand that for these businesses to function, their customers also need internet access,” one user wrote.

Many have turned to VPNs, satellite services such as Starlink, or roaming via foreign SIM cards. These alternatives often come at high cost, forcing households to cut spending elsewhere.

“I cut down on everything else just to stay connected,” one user wrote on social media, describing internet access as essential for both business and information.

Enforcement against bypassing restrictions has also intensified. Text messages sent to users warn that unauthorized access to the international internet via VPNs or proxy services violates cybercrime laws and could lead to prosecution.

An underground market for VPN services has emerged on domestic platforms, often charging high prices based on data usage. Reports of fraud are widespread, with users saying they paid for services that never worked.

Access has also been selectively granted through a “whitelist” system covering certain media outlets, companies and universities, resulting in uneven connectivity across sectors.

Authorities have further stepped up efforts to confiscate satellite equipment used to access services such as Starlink, narrowing the remaining avenues for global internet access.

By Vafa Guliyeva