No, it was occupied by Britain in 1940 in order to forestall a Nazi invasion.
Internet Service Providers List in Iceland
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Iceland Internet Service Providers List
(1) Provider Name : HIVE (ISP) Provider Link: http://www.hive.is/
(2) Provider Name : Netheimur Provider Link: http://www.netheimur.is
(3) Provider Name : Síminn Provider Link: http://www.siminn.is/
(4) Provider Name : Snerpa Provider Link: http://www.snerpa.is
(5) Provider Name : Vodafone Iceland Provider Link: http://www.vodafone.is/
(6) Provider Name : Vortex (ISP) Provider Link: http://hringidan.is/
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