Iran's first domestically-made cell phones will hit the market in June, says a senior Iranian telecoms industry official.

The new mobile phones will be sold under the brand name ITMC.

The Chief of Iran Telecommunication Manufacturing Company, Mohammad Ebrahim Mottale', told Fars news agency that Iran will manufacture its mobile phones in cooperation with South Korean firms.

"We have finalized an agreement with the Korean side to manufacture cellphones in Iran," he said.

Mottale' did not specify any financial details of the deal nor did he name the Korean companies involved in the project.

All of the required technical equipment for the project have been purchased and some 300,000 cellphones will be manufactured in the first six months of production, he said.

Mottale' said he expects mobile phone production in Iran to reach two million units a year within the next two years.

Iran's Ahmadinejad administration raised tariffs on cellphone imports last year from four percent to 60 percent, in a bid to discourage imports and vowing that Iranian-made mobile phones would hit the market soon.

The decision led to a hike in mobile phone prices in Iran, which is believed to be one of the largest cell phone markets in the region.

HRE/MR/IS