TCI is a government-controlled company that has a near monopoly on Iran's landline telephone services, and its network hosts much of Iran's internet traffic.
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State-owned ZTE Corp (ZTE), China's second-largest telecommunications equipment maker, agreed to a $10.5 million contract for "third-party" equipment with a part of Telecommunication Co. of Iran (TCI).
The deal, dated June 30, 2011, contains more than 20 different computer products from U.S. companies, including 30 IBM servers and other IBM equipment at a total cost of more than $8.9 million (minus a discount of about 30 percent).
A spokesman for ZTE told Reuters that the company had not yet shipped the products, did not intend to ship them and decided to abandon the agreement after they realized that the contract involved some U.S. embargoed products.
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