A new government report claiming that China is actively working to penetrate American IT systems to gain access to data does not specifically mention telecom infrastructure, but there are those in the industry who think the telecom infrastructure could be particularly vulnerable.
“The security concern on the IP side is less than in the circuit-switched side,” said David Burgess, CEO of Range Networks. “In the IP side users can run application layer security, like a secure socket layer for downloading e-mail. You can limit your exposure in the packet-switched network, but that is not possible in circuit-switched network.”
As a maker of radio access networks, Range Networks has an interest in promoting American-made infrastructure equipment. “The power and control of the telephone network in the [United States] is a legitimate concern,” said Burgess. “The installation of European equipment [into U.S. networks] is one thing but … the insertion of Chinese-made equipment is a security concern.”
Huawei and ZTE are the two biggest Chinese makers of telecom networking equipment, and Burgess worries that as control of the nation’s third-largest carrier, Sprint Nextel, passes to Japan’s Softbank, more Chinese-made equipment could find its way into U.S. networks. Some analysts have speculated that the U.S. government may impose equipment restrictions before approving the deal, in order to limit the network’s exposure to Chinese equipment.
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