October 15, 2012, 8:26 p.m. ET

A Top Satellite Provider Cuts Off Iran State Broadcaster

By FARNAZ FASSIHI and PAUL SONNE
Wall Street Journal

http://online.wsj.com/article/SB10000872396390444354004578058931263559160.html


One of Europe's leading satellite providers on Monday said it would 
terminate its contract with Iran's broadcast company, IRIB, immediately 
pulling 19 state-owned television and radio channels off the air.

Viewers in the Middle East, Iran's main cornerstone of influence, and 
Europe as well as those inside Iran who accessed the channels through 
the popular Hotbird satellite no longer have access to the channels.

Eutelsat Communications SA ETL.FR +0.97% said it stopped broadcasting 
the Iranian channels in light of European sanctions approved in March 
and a French regulatory decision. The move comes a little over a week 
after Iran escalated the jamming of Eutelsat satellites to censor 
broadcasts during recent protests over a plunge in the local currency.

The announcement came as the European Union on Monday approved new 
sanctions on Iran targeting financial institutions, trade, energy and 
shipping to urge Tehran to comply with its international obligations on 
its nuclear program. That was the latest effort by the bloc to bring 
Iran back to negotiations after a half-year of deadlocked talks. It was 
not those Monday sanctions that led to Eutelsat's decision.

It also emerged Monday that the U.S. and the EU are looking to close 
loopholes in sanctions designed to impede Iran's oil exports after they 
discovered that Tehran is secretly using offshore tax havens to help 
ship its crude.

Though Eutelsat's decision to remove Iran's government-owned channels 
isn't related to the nuclear standoff, the move serves to isolate the 
Islamist Republic further.

IRIB condemned the ban, saying it came from political pressure from 
"U.S. and Zionists" to block the truth about Islamic movements in the 
Middle East. The broadcaster said that the ban violated freedom of 
speech and that Iran would pursue legal action. It didn't say where.

For years, IRIB has rented space on the popular Eutelsat satellite 
through Arqiva Ltd., a U.K.-based transmission company and middleman. 
Both companies said Monday they were suspending the Hotbird contract 
with Iran.

Eutelsat is also planning to remove IRIB from other satellites it owns, 
a spokeswoman for the French company said, and has notified other 
transmission companies that rent space to IRIB on Eutelsat satellites 
apart from Hotbird.

Other Western satellite companies, including Intelsat SA and Telesat 
Holdings Inc., still carry IRIB's channels.

In explaining their move, Eutelsat also noted that the EU added IRIB 
Director Ezzatollah Zarghami to its sanctions list in March. They 
further said France's broadcasting regulator recently upheld a 2005 
ruling demanding the removal of the IRIB channel Sahar 1 due to 
anti-Semitic broadcasting.

Iranian human-rights organizations and opposition activists praised 
Eutelsat's decision. For years, rights groups have lobbied satellite 
companies to drop Iran's government channels, charging that they were 
propaganda tools of the regime and tools of repression and fear.

"The most important aspect of this decision is to recognize that IRIB is 
an integral arm of the Iranian intelligence and security services," said 
Hadi Ghaemi, the director for the New York-based Iran Campaign for Human 
Rights. "There was no justification for providing services."

Iran's use of Western satellite companies for censorship and jamming of 
radio and TV frequencies was a subject of a Wall Street Journal 
investigation in 2011. In a 14-page confidential report viewed by the 
Journal, IRIB's research and policy center issued orders to news and 
talk shows to show President Mahmoud Ahmadinejad's government in a 
favorable light and to make Iran appear to have the upper hand in 
nuclear talks with the West.

The Islamic Republic openly uses its state media, particularly 
television and radio, to spread its message and propaganda both 
domestically and internationally, say human-rights groups. Since the 
Arab Spring began, Iran has selectively broadcast events in Syria and 
Egypt to emphasize its interests, rights group say.

Iran has also increasingly jammed satellite transmissions to block 
local-language Western channels popular with Iranians inside Iran, 
namely Voice of America's Persian service and BBC Persian.

Western satellite companies have complained that Iran is violating 
international telecommunication accords and have issued several warnings.

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