Sandvine: Our Next Chapter as a Market Leader for Technology Solutions

PLANO, Texas -- (BUSINESS WIRE) --

With new owners, a commitment to new leadership, and reoriented business model, today we announce the next chapter of Sandvine as a technology solution leader for democracies.

Our technology facilitates internet access for hundreds of millions of people around the globe. We work with the world’s largest internet service providers to classify network traffic, enhance network connectivity, and counter threats to network security. Our mission is to help people work, learn, entertain and communicate. In response to concerns regarding the misuse of our technology by foreign governments, we made a commitment to new ownership, leadership, and business strategy. In the last several months, we have committed to significant changes to our governance and business model in consultation with the U.S. Department of Commerce, the U.S. Department of State, and other key members of the U.S. government.

These transformative changes include:

• Focusing Our Global      Operations to Democracies in Support of Internet Freedom and Digital      Rights. We believe that the best way to consistently and reliably      prevent, detect, and deter misuse of our technology is to exit      jurisdictions that lack a consistent, demonstrable commitment to internet      freedom and strong rule of law protections. After conducting a full review      of our business in jurisdictions that lack such commitments, we will no      longer operate in non-democratic countries or countries where the threat      to digital rights is too high.¹ Accordingly, we have already      exited 32 countries and are in the process of exiting an additional 24      countries, with an end-of-service date of March 31, 2025 (for Government      of Egypt customers) and December 31, 2025 (for remaining Egyptian      customers and all other identified countries).² We are not just      taking this new approach because it’s the right thing to do—we are      implementing a viable business strategy that positions us to remain a      technological leader and to provide indispensable service for our      customers.

• Dedicating 1% of All      Profits to Protecting Digital Rights. We are committed to being a      leader within our industry in the important fight to protect internet      freedom and digital rights. In addition to our new democracy-only      go-to-market plan, starting in 2025 we will donate 1% of future profits to      organizations dedicated to protecting internet freedom and remediating      instances of human rights and digital abuse. We should all do our part to      ensure that all can enjoy an open and democratized internet, and hope our      commitment inspires our peers to do the same.

• Adding Digital Rights      Expertise to Our Team. To guide our new mission and anticipate      emerging human rights risks, we will retain and consult with outside      advisors with deep expertise in understanding the global risks to digital      rights. This initiative includes adding a senior advisor who will report      directly to the Board of Directors to counsel on emerging risks and help      prevent future product misuse, as well as help us better engage relevant      non-governmental organizations and civil society to facilitate the      protection of basic freedoms on the internet. This senior advisor will      also report to the Board’s newly created Human Rights Subcommittee, which      will exercise oversight over the company’s new governance and compliance      controls, including a structure to prevent human rights and ensure export      control compliance.

• New Engagement with Civil      Society. We are committed to having better relationships and      consultations with civil society and affected stakeholders, both to      understand how we can support digital rights and to understand the risks      of future geopolitical and human rights risks. We will seek more      engagement with human rights groups and other stakeholders, including      those recommended by the U.S. Department of State, prior to expanding      business operations to new jurisdictions.

• Adopting New Controls for      Ongoing Business Operations. For countries where we plan to remain, we      will monitor for reports and signs of product misuse by customers through      a new program that prioritizes human rights due diligence (“HRDD”).³      Relevant business decisions will undergo scrutiny through a Business      Ethics Committee (“BEC”), which will seek input from outside policy      advisors, as well as outside counsel who have significant prior government      experience combatting human rights abuses. The BEC will identify and      assess countries and territories with a history of blocking or censoring      websites or social media platforms or using spyware, data analytics, and      other forms of internet restrictions or surveillance to commit human      rights abuses and infringe upon the rule of law.

• New Owners and Leadership.      This summer, a group of institutional investors committed to driving the      evolution of our company forward replaced prior ownership. Our new owners      have already appointed a new Board that, aided by a human rights advisor      and other resources, can oversee the company’s new direction. Likewise,      with this chapter successfully behind us, our current CEO has announced      his intention to step down. The company has initiated a search and      selection process for a new CEO with human-rights focused leadership who      will continue the company’s progress toward our new democratically focused      business model.

• New Name. Starting in      2025, we will operate under a new name that reflects our      leadership in protecting digital rights. While we will not ignore what has      happened in the past, we are eager for a new brand that customers and the      public will come to know as a leader in the way companies can shape their      business and governance to promote a free, reliable, and accessible      internet.

The misuse of deep packet inspection technology is an international problem that threatens free and fair elections, basic human rights, and other digital freedoms we believe are inalienable. Over the last several years, there have been instances where we believe our products were misused by foreign governments in order to infringe on civil liberties and other rights. In the past, we responded through different legal and technological methods available to us. Unfortunately, we have concluded that such steps are not enough, and what is required is a more dramatic shift in the markets in which we operate and in the way that we do business. We recognize this decision may be disruptive, and we are committed to exiting markets in a way that maintains internet connectivity to the millions of subscribers our customers serve.

We acknowledge past misuse of Sandvine’s products, as well as the fact that the company’s response to past reports of misuse was insufficient. We also unequivocally condemn any misuse of our products to facilitate repression, limit freedom of expression, restrict freedom of association, monitor journalists and political dissidents, and disrupt democratic elections. In that vein, and with the changes outlined today, we are now well positioned to be an industry leader that forcefully pushes back on authoritarian governmental use of technology to undermine democratic norms and abuse basic human rights.

As we embark on this new chapter as a technology solution leader for democracies, we are especially thankful to our customers and business partners for their continued support and steadfast fidelity to our purpose. We are, and will remain, committed to improve because we believe access to digital communication and its benefits bolsters the values and interests of democracy.

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¹ This decision was based on a review of our operations using a variety of government and external references, including the U.S. Department of State Country Reports on Human Rights Practices, the Reporters Without Borders’ 2023 World Press Freedom Index, and Freedom House’s 2024 Internet Freedom Scores. We made the decision to exit all countries categorized as “non-democratic” in the Economist Intelligence Unit’s 2023 Democracy Index, which is available here.
² In the interim period before exiting these jurisdictions, Sandvine will maintain contractual authority to act on violations of the end-user license agreement.
³ Our new HRDD program will look to implement enhanced measures and transparency in line with the U.S. State Department’s Guidance on Implementing the UN Guiding Principles for Transactions Linked to Foreign Government End-Users for Products or Services with Surveillance Capabilities.