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Technology Stocks : Cisco Systems, Inc. (CSCO)

CSCO 71.07

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Nov 6 3:59 PM EST

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From: zax	10/26/2012 10:37:44 PM
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China Unicom replaces Cisco devices over security concerns morningwhistle.com China Unicom has replaced Cisco Systems, Inc. (NASDAQ.CSCO) in one of the country’s most important backbone networks, citing security reasons, the 21st Century Business Herald reported. The replacement project targets “China169,” Cisco’s backbone network router of Wuxi node, in Jiangsu province. Analysts indicated that the product vulnerability and back door problems are the main worries of China Unicom. The move came after a congressional report branded Huawei Technologies Co. Ltd. (002502.SZ) and ZTE Corp. (0763.HK, 000063.SZ) security threats in the United States. Chinese domestic operators have begun to intensify network security since then, the report said. As the world’s largest maker of networking equipment, Cisco occupies a large market share in China. It accounts for over a 70 percent share of China Telecom’s 163 backbone network and over an 80 percent share of China Unicom’s 169 backbone network. 163 and 169 backbone networks are the most important backbone networks of China, delivering over 80 percent of the data in the country’s Internet. Cisco ended a longstanding sales partnership with ZTE Corp. earlier this month.

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