Buying and selling of this hardware, of course, is contrary to U.S. policy in the agreement Huawei signed with the U.S. government. MTN IranCell declined the offer from Huawei's partner noting that they did so because they respect the sanctions imposed on Iran by the U.S. and have worked hard to obtain towers from a German manufacturer after the incident. Huawei told their version of the story via a spokesperson and said that they have not provided the equipment for the project because "Huawei strictly complied and continues to comply with all relevant international and local laws and regulations."

Another Chinese telecom equipment maker, ZTE, came under heavy fire from U.S. authorities because they have agreed to or actually sold U.S. equipment worth “millions of dollars” to an Iranian telecom. In the case of Huawei there are not millions at stake, but the U.S. authorities could see the incident as a matter of principle, and maybe make things difficult in future for Huawei in the U.S.

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