Rumor: China Unicom Removes Cisco Equipment from Backbone

National Business Daily, 10/26/12

China Unicom (NYSE: CHU; 0762.HK; 600050.SH) has reportedly removed Cisco Carrier Routing System (CRS) core cluster routers from the "China 169" backbone network node in Wuxi, Jiangsu province. An industry source said the move was due to concerns regarding vulnerabilities and backdoor issues regarding Cisco products.

Researcher Michael Lynn claimed to have discovered security flaws in Cisco's Internet Operating System (IOS) that allowed hackers to shut down routers in 2005, and the source code for IOS was stolen previously.

China Telecom's (NYSE: CHA; 0728.HK) 163 and China Unicom's 169 networks are China's core backbone networks, handling over 80% of the country's internet traffic. Cisco provides equipment for over 70% of the 163 network and more than 80% of the 169 network.

Keywords: national security telecom equipment China Telecom China Unicom Internet telecom Cisco 0728.HK 0762.HK 600050.SH CHA CHU

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