Market Trends of Iran Telecom Industry
This section covers the major market trends shaping the Iran Telecom Market according to our research experts:
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.
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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.
