Rather than just worry about the content available on YouTube like some others, it appears that Iran has decided to just block the entire site outright. Of course, you have to wonder how effective such a block really is. After all, this is the same country where broadband service providers apparently have no worries about ignoring the government's ban on broadband (which would seem like it might make YouTube less than useful anyway). However, with hundreds of competing sites, and more popping up every day, it seems that the Iranians who want to view the next viral video, will just move on to some other site.
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