CALEA Market Overview Robert Golden Chief Research Officer Merit Network CALEA and Beyond January 31, 2007

The Communications Assistance for Law Enforcement (CALEA) was passed by Congress in It requires the assistance of telecommunication carriers and equipment providers in a) developing a standard for intercepting call data and b) providing that information to law enforcement agencies to carry out wiretap judgments. What is CALEA?

l CALEA applies to public, facilities-based broadband access and VoIP providers whose networks touch the Internet, (i.e.. gateways). l Monitoring Report Due – February 12, 2007 l System Security Reports – March 12, 2007 l Full CALEA Compliance – May 14, 2007 CALEA Compliance & Key Dates

1. Lawful Interception of Digital Communications of All Types 2. Capture of Identifying Information A. Origin B. Direction C. Destination D. Termination E. Date/Time Source: Frost & Sullivan, U.S. CALEA Market Insight , 2003 CALEA Intercept Legal Requirements

2005 Wiretaps by Type of Criminal Investigation Source: U.S. Courts Federal & State Wiretap Reports (1997 – 2005) Other*: Bribery, Kidnapping, Larceny & Theft, etc.

Categories of Surveillance Source: U.S. Courts Federal & State Wiretap Reports (1997 – 2005) Wire - land line, cellular, cordless & mobile Oral - microphone Electronic - incl. computer transmissions

Source: U.S. Courts Federal & State Wiretap Reports (1997 – 2005) Wiretap Growth Growth Accelerating

Source: U.S. Courts Federal & State Wiretap Reports (1997 – 2005) Cost of Compliance for Intercept Orders $57,186 Per Intercept Growing 5% to 7% per year Total Estimated Cost: $100+ Million/Year

1. Apply an Equipment Solution to Each Piece of Equipment (e.g. each switch) 2. Utilize a Mediation Solution that works with all network elements to provide lawful interception 3. Engage a Trusted Third Party (TTP) Solution Options to Achieve CALEA Compliance

1. Access Function 2. Delivery Function 3. Collection Function Primary Functions to Achieve CALEA Compliance

1. Access Function l defines intercept access points in the network l access points can either be: A. located at network equipment exits (routers, switches, gateways, etc.) or B. passive probes placed strategically in the network CALEA Functions

2. Delivery Function l warrant for the target is entered here l communicates with the access function l provides target identifying information A. phone number B. IP address C. address D. chat handle, etc. CALEA Functions

2. Delivery Function (continued) l Receives intercepted traffic from all access functions in the network l Processes intercepted traffic: A.formats it B.encapsulates it according to the interface standards C.delivers it to law enforcement l Acts as bridge to Law Enforcement Agency CALEA Functions

3. Collection Function (operated by LE Agency) l Application that receives intercepted traffic l Complies with delivery standards l Provides advanced tools for: A.analyzing data B.building relationships between targets C.creating link charts D.tracking target activities and compiling evidence for court CALEA Functions

Calculating the Cost Software Cost$$ Hardware Cost$$ FTE’s Administrative Cost $$ Tech Support $$ Maintenance $$ Legal $$ $$$ CALEA Costs

1.Fully Managed Service Providers (TTP) l VeriSign – public key solutions (verisign.com) l NeuStar – telecom directory services (neustar.biz) l APOGEE – dormitory network systems (apogeenet.net) 2. System Providers l Narus – software suite (used by VeriSign – narus.com) l SS8 – mediation box manufacturer (SS8.com) l AQSACOM – ALIS client/server platform (aqsacomna.com) l Endace – traffic monitoring and capture systems (preparing a service solution – endace.com) CALEA Providers

3. High Performance 10G NIC’s Chelsio 10Gb Intel Pro 10GbE S2I0 10GbE XFrame Myricom 10GbE CALEA Hardware

TTP Providers

Merit’s Products and Services 1. Open Source Solutions First Tool: An Open Source Program for Performing Access and Delivery Functions Available at Beginning of 2 nd Qtr CALEA Support Services Technical Advisory Services Hardware and Software Support Services Trusted Third Party (TTP) Services