What to Expect In Iran’s Telecom Sector

One of the surprises in Iranian President Hassan Rouhani’s proposed Cabinet has been the appointment of Mahmoud Vaezi as minister of communications and information technology. Vaezi, a former deputy foreign minister and head of the international division at the Center for Strategic Research (the think tank that Rouhani has presided over since the 1990s), seemed to be a more suitable candidate for a position related to foreign policy, but he has now been tasked with one of the most challenging ministries in the Iranian government. 

It is true that Vaezi has a degree in communications and was managing director of the Telecommunication Company of Iran (TCI) between 1979 and 1986, but his experience relates to the time when the sector was mainly focused on fixed telephone lines. Today, in terms of the complexity of the economic, technical and security interests involved, the telecom sector is only second to the petroleum industry in Iran.

The growth of the sector, the emergence of three mobile operators, data services, domestic satellite technology, expansive infrastructure and most importantly the dominant role of companies affiliated with the Iranian Revolutionary Guards (IRGC), have subjected the sector to immense competition between various interest groups. This may explain why the president decided to appoint a close confidant to the position. In the words of one Iranian analyst, “Managing the complex telecom sector can be more important for the new president than the petroleum sector, because the telecom sector touches people’s lives on a daily basis and on multiple dimensions.” 

Interestingly, despite some direct criticism by his opponents, Vaezi secured a vote of confidence with 218 out of 283 votes — a resounding result and a sign that his planned approach to the sector has been endorsed across political factions. The high vote in favor of Vaezi could also be interpreted as a sign that the powerful IRGC decided not to lobby against him.