Iran says it will permanently suspend Google's (GOOG) email product within its borders, the Wall Street Journal reports.

Iran's telecom agency says it will provide citizens a national email service.

The WSJ reports, "An Iranian official said the measure was meant to boost local development of Internet technology and to build trust between people and the government."

Tomorrow is the 31st anniversary of Iran's Islamic Republic. Pro- and anti-government Demonstrations are expected.

In January, Google announced it had been attacked by Chinese hackers. The company threatened to quit the country for good. Earlier this week, we reported that Google is already investing in the country again.