US cellcos asked for confidential data in China probe
Verizon and AT&T requested to reveal details of critical networks and foreign supplier deals by US government
Published: 2 December, 2011
The US government has stepped up its investigation of Chinese network suppliers, demanding that Verizon and AT&T divulge confidential details about their wireless and wired networks.
There is suspicion in some quarters in the US of alleged links between Chinese vendors like Huawei and the country's intelligence agencies, and fears that networks supplied by these companies could be used to spy on critical US systems and activities. Such allegations are vehemently denied by Huawei and ZTE, and even many US commentators believe the climate of hostility has more to do with commercial protectionism than national security. The government recently initiated a formal probe, which was welcomed by Huawei, which has called for the administration to produce concrete evidence of its claims.
The latest move by the US Commerce Department puts the two biggest carriers in a dilemma, between supporting national security probes and protecting their own critical competitive information, notably about how they structure their networks. They are among a range of companies which has been asked to reveal a detailed breakdown of network equipment and software sourced from foreign vendors. The initial questionnaires were sent out in April, before the government officially announced an investigation of possible spyware on critical systems, but now sources say the level of detail required has intensified.
According to Bloomberg News, which obtained a copy of the Commerce Department survey, topics include the nature and providers of various equipment types including base station controllers, optical transmission components and transceivers.
Firms were also asked to list foreign manufacturers which offered the most attractive discounts, vendor financing and leasing schemes - a key competitive weapon for the Chinese suppliers - as well as the terms companies requested in return for such deals, including physical access protocols.
Two trade bodies, the US Telecom Association and CTIA, have protested against the probe, claiming that it breaks the usual norms of voluntary cooperation between the telecoms sector and the government on national security. Respondents expressed concern that the confidential data they revealed might get into competitive or public hands - ironically enough, Bloomberg says, the Commerce Department was hacked by Chinese agencies in 2006. Companies have until June 10 2012 to send in encrypted responses.
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