IP: Important Security Update?

[Dave Farber <farber () cis upenn edu>]

> Date: Thu, 6 Jul 2000 13:36:32 -0400
> To: farber () cis upenn edu
> From: Charles Brownstein <cbrownst () cnri reston va us>
>
> from http://www.internetnews.com/isp-news/article/0,2171,8_409201,00.html
>
> InternetNews - ISP News
>
> July 6, 2000 InternetNews - ISP News Archives
>
>
> FBI to Scrutinize NTT-Verio By the InternetNews.com Staff
>
> Tokyo-based Verio Inc. is being scrutinized by the Federal Bureau of 
> Investigation.
>
> According to the Wall Street Journal, the FBI Thursday raised national 
> security concerns about the Japanese company's attempt to acquire the U.S. 
> Internet service provider.
>
> The FBI registered concerns with the Treasury Department about NTT's 
> (NYSE:NTT) planned purchase of Verio (NASDAQ:VRIO) because agency is 
> concerned that foreign ownership of Verio would inhibit its ability to 
> maintain surveillance over its telecommunications network.
>
> NTT posted a $5.5 billion offer for Verio in May to acquire the final 90 
> percent of Verio it did not already own. Verio provides Web hosting and 
> network services for about 20 percent of the Fortune 500 companies in the 
> world.
>
> The FBI contents that in order to protect U.S. facilities, it must be 
> assured that only U.S.-owned companies can be used to handle domestic 
> Internet traffic. In the past, the FBI has also insisted that the 
> companies employ U.S. citizens to handle potential wiretapping activities.
>
> NTT announced Friday that the Treasury Department's Committee on Foreign 
> Investment in the U.S. would conduct a 45-day review of the planned merger.