Parliament research center reviews broadband tariff

 “Iran’s internet broadband market is very complex. It is mostly monopolized by Iranian companies, and Radio Communication and Regulations Organization commission, because of its dependency on ICT Ministry, does nothing to free it,” Parliament research center deputy said in reply to a question by industries and mines committee member Ali Motahhari.
On the other hand, the market has become inept and illogical and has been divided into smaller sections (ISP, PAP, etc.) without any reason and that has increased the costs dramatically, the center reported.
RCRO, as market trend setter, has no precise policy and instead of few major rival companies there are 1,500 small companies which only help to increase overhead costs.
According to the research center, the transfer cost is very high and the overall cost of the transfer and broadband internet is 70% of a private agency’s expenses. Moreover government management is inefficient and government companies’ expenses are usually covered by increasing their tariffs.
Another important issue is that the cost of internet from main foreign gates is high and, therefore, no tariff management can make them realistic.
Parliament research center has offered its solution to the problem and pointed to the necessity of activating and revising RCRO commission structure for independency from state companies and creating competitive atmosphere for increasing private sector capabilities.
Some regulations should be passed on the cost of broadband internet, as basic element in IT, and their tariffs should be revised.
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