Telecommunications of Iran (TCI), Iran’s largest telecommunications of Iran has bought a powerful surveillance system from Chinese telco major ZTE, according to Reuters.

The system is capable of monitoring landline, mobile and internet communications, interviews and contract documents show.

The report said that 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 says that ZTE-TCI deal, signed in December 2010, illustrates how despite tightening global sanctions, Iran still manages to obtain sophisticated technology, including systems that can be used to crack down on dissidents.