Iran Struggles to Improve Quality Of Web Hosting Services

Iran Flag HostingIn order to breathe new life into the not-so-great cheap web hosting market in Iran, ISPs there will begin offering a higher quality web hosting experience. Iran's ‘Ministry of Science and Technology’ released statistics in July that showed the number of cheap hosting websites hosted in Iranian data-centers has risen substantially.

Local IT companies, according to analysts, stand to gain much from the increased demand for quality web hosting. Right now, the issue is that providing websites with great bandwidth is next to impossible. Why? It’s all about the money. Bandwidth in Iran can be costly – much more costly than in European and North American countries. This is a big issue.

Iran: The Problem

In December of 2011, the Dubai-based ‘Noor Islamic Bank’ cut ties with Iran (a move prompted by the US Treasury Department). In turn, the Rial (Iranian currency) began a steady decline. Cheap hosting providers that were once spread out across Iran are suffering the consequences. There is a silver lining here, though, thanks to recent Internet privacy paranoia in the United States, local Iranian companies are seeking local Internet providers.

This all adds up to web hosting companies offer decent services to local clients at cheap prices – not a bad way to help Iran’s economy turnaround. Hosting locally also makes a good deal of sense for local companies (as we’ve mentioned on this blog numerous times, local hosting is the best option if possible). But, bandwidth has to be more affordable, or those hosting companies won’t be able to keep costs down.

Iran: The Solution

Much to the chagrin of hosting companies in the United States, the solution to Iran’s problem might be cashing in on the current US Government Internet spying issue. If Iran-based cheap hosting companies can attract clients that are located outside of Iran, the costs could go down. As it turns out, neighboring countries do not offer many hosting options, and this leaves the door wide open for Iran-based hosting options. Were the Iranian government to get behind this initiative by offering support, Iran-based hosting companies would have a better chance – something that might currently be happening in the way of loans.

Iran: Possible Change

Over the past few months, the Iranian government has offered those small- to medium-sized businesses operating within the country low-interest loans. Were some of these funds passed on to cheap hosting companies, things could change. As for companies based in the U.S., a recent sanction lift has included the now allowed sale and exportation of software, mobile phones, and certain hardware – as long as U.S. citizens do not deal directly with the Iranian government.

It’s hard to ignore the fact that hosting companies in other countries are gaining ground due to the recent U.S. Government-spying problem. As predicted, hosting companies that are based in countries like Iran now have more of a chance when it comes to gaining local, European, and neighboring country business.

What are your thoughts on this issue? Should the Iranian Government step in to help out cheap hosting companies based in the country?

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