(MENAFN) The world's No.1 mobile network equipment maker Ericsson is undergoing projects with Mobile Communication Co of Iran (MCCI), to expand its network and has promised to support another Iranian mobile carrier until 2021, Reuters reported.
The involvement of the Swedish company comes at a time when many Western companies have reined or halted business in Iran because of international sanctions or concerns about damage to their reputations.
While Ericsson argues in the internal document that telecommunications are a "basic humanitarian service," Iranian human rights groups say Iran's regime has used the country's mobile-phone networks to track and monitor dissidents.
It added that it will not seek new contracts, though they will honour existing ones.
Fredrik Hallstan, a spokesman for Ericsson, confirmed the company is currently working on a new expansion project for MCCI under a contract Ericsson signed in 2008.
Hallstan added that Ericsson's promise to continue supporting a second Iranian mobile operator, MTN Irancell, for many years falls under a 2006 contract.