Velatel Global Comm. (fka VELA)

[LongTimeObserver]

It's so bad that Iran has bounced ZTE.

ZTE winds down Iran biz after espionage claims

Chinese handset giant ZTE has been forced to clarify that it’s no longer touting for new business in Iran, but remained vague about allegations that it sold the country’s largest telecoms firm a nationwide internet and phone surveillance system.

The system was part of a 98.6 million euro ($130.6 million) contract for networking equipment supplied by Shenzhen, China-based ZTE Corp. to the Telecommunication Co. of Iran (TCI), according to the documents. Government-controlled TCI has a near monopoly on Iran’s landline telephone services and much of Iran’s internet traffic is required to flow through its network.

The report claimed that the deal included the ZXMT system for monitoring voice, text messages and internet comms and is even referred to in ZTE marketing material as an “integrated monitoring system” and a “turnkey solution for lawful interception”. It uses deep packet inspection to monitor, isolate and block internet traffic, the report continued.