Iran Satellite in US Row Fails to Reach Orbit

Iran launched a satellite criticized by the United States as a breach of a UN resolution on Tuesday but it failed to reach orbit, the telecommunications minister said.

Iran's arch foe Israel swiftly condemned the launch, which it charged was cover for the testing of the first stage of an intercontinental ballistic missile.

"The Payam satellite was successfully launched this morning with the Safir satellite carrier," Mohammad Javad Azari Jahromi told state television.

"But the satellite unfortunately failed to be placed in orbit in the final stage."

The Payam (Message in Persian) and its launch vehicle had gone through successful testing of its first and second stages, the minister said.

But in the actual launch, the satellite failed to reach the required speed on detachment from the rocket in the third stage.

Both the Payam and its carrier were designed and produced at Tehran's Amirkabir University of Technology.

University head Ahmad Motamedi said Amirkabir had already received an order for a replacement, Mehr news agency reported.

Iran also plans to launch another low Earth orbit satellite, the Doosti (Friendship in Persian), Jahromi said.

He did not give a date for the launch but said the satellite was intended to orbit the earth at an altitude of 250 kilometres (156 miles).

"We will do our best to place it in the orbit," he said.

Iran has said repeatedly that its space program, like its wider ballistic missile programme, is for scientific research and defense purposes only. 

The Payam and the Doosti were both designed to gather information on environmental change in Iran, President Hassan Rouhani said on Monday.

"The satellite will give us all the information we need, and we will prove to the world that we are a country of science," Rouhani said.

But Israel and its US ally both claim the space program is cover for the development of longer-range ballistic missiles capable of delivering nuclear warheads.

"Iran is lying now that it launched an innocent satellite to space," Israeli Prime Minister Benjamin Netanyahu said after the abortive launch.

"It actually wants to achieve the first stage of an intercontinental missile, in violation of all international agreements," he told a ceremony in Tel Aviv for the investiture of new armed forces chief of staff, Lieutenant General Aviv Kochavi.

"We fully support the United State's firm objection to this act of aggression," he added.

Earlier this month, US Secretary of State Mike Pompeo said Iran's plans to send satellites into orbit would violate the UN Security Council resolution that endorsed a landmark 2015 nuclear deal between major powers and Tehran.

Tehran reined in most of its nuclear program under the deal, since abandoned by Washington last year, but has continued to develop its ballistic missile and rocket technology. 

Security Council Resolution 2231 calls on Iran to refrain from testing missiles designed to be capable of carrying a nuclear weapon, but does not specifically bar Tehran from missile or rocket launches.

Washington says the space launches violate the resolution.

Iran's satellite-delivery rockets use technology "virtually identical" to nuclear-capable ballistic missiles, Pompeo said on January 3.

“The United States will not stand by and watch the Iranian regime's destructive policies place international stability and security at risk."

Tehran denied the planned launch was a violation of Resolution 2231.

"The satellite is part of a civil project with purely scientific aims, foreign ministry spokesman Bahram Ghasemi told the semi-official ISNA news agency.

"Iran will wait for no country's permission to conduct such scientific projects."

The Payam satellite, first designed over a decade ago, was initially expected to be launched on a foreign-manufactured rocket, project manager Mostafa Safavi told ISNA in an interview published just hours before the launch.

"The Payam is a non-military satellite with a non-military mission but some countries, thinking that it could have a military purpose, showed no enthusiasm for launching Iranian satellites," Safavi said. 

"When they did not cooperate for non-technical reasons, the satellite's specifications were altered and made ready for a domestic launcher," he added.

Iran has launched several short-life  satellites into orbit over the past decade, including the Simorgh and the Pajouhesh.

Photo Credit: IRNA

Iran's Currency Crisis Triggers Corruption Crackdown

With its currency plummeting ahead of the reimposition of US sanctions, Iran has responded with dozens of arrests and claims of an enemy conspiracy, but also signs of a push to confront corruption.

The Iranian rial has lost almost two-thirds of its value since the start of the year, and 20 percent in just two days since the weekend, hitting a record-low of 119,000 to the dollar. 

Many lay the blame on the imminent reimposition of US sanctions on August 6 following US President Donald Trump's decision to pull out of the historic nuclear accord, with Iranians rushing to store their savings in dollars. 

The central bank issued a statement on Monday that trod a familiar line, blaming "the enemies' conspiracies" for the rial's sudden decline.

This may not be purely paranoid fantasy. The US and its Gulf Arab allies are engaged in a "maximum pressure campaign" against the Iranian government, and there have been rumours that the United Arab Emirates has been curbing the physical supply of dollars to Iran, helping drive up prices.

But others say outside pressure is only effective because Iran's economy is so corrupt and poorly managed. 

Belatedly, the authorities appear to be waking up to the crisis. This weekend, the judiciary announced 60 people had been arrested for fraud and trying to undermine the banking system, with more to come.  

Spokesman Gholam Hossein Mohseni-Ejeie said several had direct ties to the government, allowing them, for example, to illegally import luxury cars, and could face the death penalty on Iran's infamous charge of "corruption on Earth". 

New Transparency

The arrests follow mounting anger against profiteers who use political connections to access dollars at artificially low rates, and then use them to import goods on the cheap, or simply sell them on the black market for a huge profit.

In a radical departure from usual government practice, in June the young telecoms minister Mohammad Javad Azari Jahromi exposed a group of mobile phone importers who were gaming the system. 

They had been granted USD 250 million at the cheap rate to import phones, he said, "but less than one third was used for the purpose," implying the rest was stashed away or sold.

The 36-year-old minister's move proved wildly popular on social media, but saw a backlash from some of his cabinet colleagues such as Industry Minister Mohammad Shariatmadari, who said doing something similar in his ministry would amount to "a war against the private sector."

Still, the episode showed a new willingness among Iranian officials to "be transparent and introduce accountability into the system," said Esfandyar Batmanghelidj, founder of the Europe-Iran Forum, a business network.

"Hopefully, more officials will understand that this is what the public is looking for."

'Full-Fledged Crisis'

The other priority is fixing the chaotic policies that have facilitated profiteering in the first place, particularly the disastrous decision in April to set a single, fixed rate for the dollar at IRR 42,000. 

To enforce the decision, the authorities shut down currency trading shops and made it illegal to sell dollars above the official rate, which only fueled a boom in the black market.

The government was forced to climb down in June, saying only importers of essential items such as medicines would use the cheap rate, while others would negotiate a higher price. 

President Hassan Rouhani sacked the central bank chief last week, and his replacement, Abdolnassar Hemati, has promised new currency policies "in the coming days". 

But trapped in fire-fighting mode and under fire from both conservatives and reformists over the deteriorating economic situation, Rouhani has done little to address deeper problems. 

"We're in a full-fledged crisis and that's taking all the attention. No one is talking about bank reform and investment and job creation," said economic journalist Maziar Motamedi of Tehran's Financial Tribune. 

Fearing a public panic, the government continues to insist that everything is under control, but has so far offered only vague promises that it will allocate more money to job creation and funnel more infrastructure projects to the private sector. 

"Just saying positive stuff is not helping. People have a hard time believing them," Motamedi said. 

"Everyone knows the structural problems are there but the government is tackling crises as they happen rather than preventing them."

Photo Credit: Wikicommons

Iran Minister Says 'Impossible' to Block Information by Banning Apps

Iran's telecoms minister said Tuesday it was "impossible to block citizen's access to information", a day after the conservative-dominated judiciary banned the hugely popular Telegram messaging app.

Mohammad Javad Azari Jahromi's comments on Twitter highlighted differences of opinion between the government of reformist President Hassan Rouhani and ultra-conservatives who control the judiciary and security services.

"Even if we ban the use of software, other software will be found and information will start to circulate freely again," Jahromi wrote. "Technology is not intrinsically guilty, corrupt, or deviant," he added. 

"It is human beings who misuse it to promote crime and corruption in the virtual world, just as they do in real life."

A Tehran judge on Monday ordered the blocking of Telegram, the judiciary's Mizan Online news agency said, following accusations that the app has allowed armed opposition groups to fuel unrest.

The move follows a presidential directive banning all government workers from using foreign messenger apps to communicate.

Built by Russian tech guru Pavel Durov, Telegram is the most popular social network in Iran with some 40 million users—roughly half the population.

During a wave of protests that hit dozens of Iranian cities early this year, authorities temporarily banned the app, saying it enabled foreign-based "counter-revolutionary" groups to stir tensions.

Since then, authorities have sought to develop Iranian social media networks and limit reliance on foreign-based platforms, which Tehran accuses of hosting sites hostile to the Islamic Republic.

The ban adds Telegram to the list of social networks blocked in the Islamic Republic but accessible via virtual private network (VPN) software which can circumvent internet blackouts—something the judiciary wants to prevent in the case of the messaging app.

Monday's announcement was followed by rumors Jahromi had resigned, but the semi-official ISNA news agency denied that.

"On the question of filtering (social networks), we said and repeated that this is not the only solution," it cited him as saying. "The competent authorities heard our arguments and made their decision."

Photo Credit: IRNA

Iran Bans Banks From Using Cryptocurrencies

Iran banned the use of bitcoin and other cryptocurrencies by banks and financial institutions on Monday amid ongoing debate over how best to regulate the technology.

"The use of bitcoin and other cryptocurrencies in all the country's monetary and financial centers was banned," the central bank said in a statement overnight. 

It said the government's money-laundering committee had taken the decision in late December and it was now being put into effect. 

The ban came because "all cryptocurrencies have the capacity to be turned into a means for money-laundering and financing terrorism and in general can be turned into a means for transferring criminals' money," it added. 

Many in Iran see great potential in digital currencies as a way to overcome problems related to international sanctions and difficulties facing the country's ailing banks. 

Earlier this year, the country's 36-year-old telecoms minister Mohammad-Javad Azari Jahromi set up a team to create Iran's own cryptocurrency. 

But there are also fears that the technology could undermine the country's already weak banking system and exacerbate capital flight. 

Iranians working in the fledgling private cryptocurrency market said the ban was unlikely to affect their operations.

"This ruling referred directly to banks, financial institutions and currency exchangers that work with the central bank," Hadi Nemati, who works for cryptocurrency exchange platform Coinex, told AFP. 

"In my opinion, it doesn't include the general public -- it's not a total ban on cryptocurrencies." 

Coinex had however halted activity on its exchange platform because "we always want to make sure we comply with the law", he said. "But I have seen other crypto exchanges were still working normally."

Photo Credit: PXHere

Iran Bans Foreign Social Media Networks in Schools

Iran's ministry of education on Sunday banned the use of foreign social media networks in schools, the ILNA news agency reported, amid a push by Tehran to limit the influence of outside online platforms.

Schools must "only use domestic social networks" for their communication, the ministry said in a statement, according to the reformist-linked news agency.

Telegram is the most popular social network in Iran. In 2017, the app claimed it had 40-million monthly users in the Islamic Republic.

Instagram is also very popular, and companies in Iran—like elsewhere—often use both platforms to communicate directly with customers. 

Less used, Facebook and Twitter are blocked in Iran, but easily accessible using a virtual private network (VPN).

During a wave of protests that hit dozens of Iranian cities over at the start of the year, Iranian authorities temporarily banned Telegram, accusing the app of allowing foreign-based "counter-revolutionary" groups to fuel unrest. 

Since then, authorities have sought to develop Iranian social media networks and limit the reliance on foreign-based platforms, which Tehran accuses of hosting sites deemed hostile to the Islamic Republic. 

Several Iranian platforms offering services similar to Telegram have emerged in recent months, like the Soroush network, which already claims to have five million subscribers. 

According to the official IRNA news agency, Telecommunication Minister Mohammad-Javad Azari Jahromi recently pledged Iranian networks would offer the same guarantees of confidentiality as foreign platforms. 

"No message is read, and no (personal) information is communicated to anyone," he told parliament. 

In a statement recently posted to his website, Iran's Supreme Leader Ayatollah Ali Khamenei said the government should guarantee the "security and privacy" of people on the internet.

Khamenei called intrusions into online privacy "haram", or prohibited from a religious standpoint. 

Iranian media has appeared to encourage people to join the new networks by assuring viewers they will continue to operate even if Telegram is again banned.

Photo Credit: Mehr