NSA Spying Risks $35 Billion in U.S. Technology Sales
NSA Spying Risks $35 Billion in U.S. Technology Sales: Disclosures of spying abroad may cost U.S. companies as much as $35 billion in lost revenue through 2016 because of doubts about the security of information on their systems, according to the Information Technology & Innovation Foundation, a policy research group in Washington whose board includes representatives of companies such as International Business Machines Corp. (IBM) and Intel Corp. (INTC)
“The potential fallout is pretty huge given how much our economy depends on the information economy for its growth,” said Rebecca MacKinnon, a senior fellow at the New America Foundation, a Washington policy group. “It’s increasingly where the U.S. advantage lies.”
Any setback in the U.S. push to maintain an open Internet also could inflict indirect damage on companies such as Apple Inc. (AAPL) and Google Inc. (GOOG) that benefit from global networks with few national restrictions.
Almost 40 percent of the world’s population, or 2.7 billion people, are online, according to the International Telecommunication Union, a Geneva-based United Nations agency.
Cisco Systems Inc. (CSCO), the world’s largest maker of computer-networking equipment, said this month that the NSA disclosures are causing some hesitation among customers in emerging markets.
Orders in China fell 18 percent in the three months ended Oct. 26. Elsewhere, Robert Lloyd, head of development and sales, said on a conference call Nov. 13, “it’s not having a material impact, but it’s certainly causing people to stop and then rethink decisions.”