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.