WSW, NY, December 29th, 2025, FinanceWire
From traffic lights to water systems, U.S. civilian networks are under siege. Actelis Networks (NASDAQ:ASNS) provides technology that transforms vulnerable legacy infrastructure into encrypted, fiber-grade systems in days rather than years.
In late August 2025, the FBI and its partners disclosed that Chinese state-sponsored hackers had compromised at least 200 organizations across 80 countries. The group known as Salt Typhoon had maintained access for extended periods, up to two years in some cases, inside the networks of at least nine major U.S. telecommunications providers. But telecommunications was only one front. Joint warnings from CISA, the NSA, and the FBI made clear that Chinese state-linked cyber actors have also been identified across transportation, energy, and water-related organizations – much of its infrastructure built long before modern cybersecurity threats existed.
These are the same systems that keep cities functioning day to day: traffic signals, utility controls, municipal communications, and edge-connected devices that were never designed to be continuously defended. As agencies warn that attackers are positioning themselves to disrupt civilian functions during a future crisis, attention is shifting to a more uncomfortable question – how quickly can aging civic infrastructure realistically be secured?
That question is increasingly relevant for a small, little-known company operating far below the radar of most investors: Actelis Networks (NASDAQ: ASNS), a microcap valued in the single-digit millions, that may be uniquely positioned to benefit from these increased risks.
The Threat Is Concentrated Where Infrastructure Is Oldest
The data underscores why the issue is gaining urgency. The House Homeland Security Committee reported that roughly 70 percent of cyberattacks in 2024 involved critical infrastructure. Chinese cyber-espionage activity rose approximately 150 percent year-over-year, while attacks impacting financial services, manufacturing, and industrial sectors increased by roughly 300 percent. In 2025 alone, major cyberattacks on state and local governments have been recorded in at least 44 U.S. states.
Investigations into the Salt Typhoon breaches revealed a pattern that applies far beyond telecommunications. Senate Commerce Committee leaders and expert witnesses pointed to outdated equipment left unpatched for years, vulnerabilities with fixes long available, and weak security controls across essential systems. Several major carriers struggled to demonstrate that intrusions had been fully eradicated.
For cities and utilities facing similar realities, the problem is not awareness – it is execution. Replacing legacy infrastructure with new fiber and modern systems can take years and billions in capital. The threat environment is moving far faster.
Actelis: A Practical Solution to a Growing National Problem
Actelis operates at the intersection of cybersecurity and physical infrastructure, a niche that is becoming increasingly strategic. The company provides hybrid-fiber networking solutions that upgrade existing copper and coaxial infrastructure into encrypted, fiber-grade networks – without requiring municipalities or utilities to rip and replace what is already in the ground.
This approach seems to address the bottleneck exposed by such cyber threats: governments need to secure infrastructure immediately, not after multi-year construction projects that may never be funded. Actelis’ systems incorporate 256-bit MACsec encryption, data fragmentation, and scrambling designed to protect data at the edge, where IoT devices and operational technology are most exposed. In 2024, the company expanded this capability with its Cyber Aware Networking initiative, adding an AI-driven software layer intended to monitor network behavior and respond to anomalies in real time.
What makes this notable from an investment perspective is not just the technology, but where it is already being deployed.
Under-the-Radar Validation in the U.S. and Europe
Despite its small market capitalization, Actelis is already selling into environments that typically move slowly and conservatively. In Seattle, the city selected Actelis to support upgrades to its Intelligent Transportation System, enabling secure connectivity for traffic signals, cameras, congestion monitoring, and dynamic message signs. In Washington, D.C., the company became part of a flagship municipal deployment, beginning with an approximately $2.3 million project in 2024 and followed by expansion orders through 2025.
Internationally, the pattern continues. In November 2025, Actelis secured an order from a regional utility in central Germany to provide cyber-hardened networking for water, gas, and electricity distribution. The company has also deployed solutions supporting Italian motorways and German municipalities. These are not experimental pilots, but operational systems embedded in critical infrastructure.
This matters because infrastructure and utility customers are typically conservative buyers. Once deployed, systems tend to expand incrementally rather than churn, creating long-duration relationships rather than one-off sales.
A Potentially Asymmetric Setup
The broader backdrop seems to be shifting in Actelis’ favor. Roughly two-thirds of U.S. cities have invested in some form of smart-city technology, and the global Intelligent Transportation Systems market is projected to reach the mid-$60-billion range by the early 2030s. At the same time, geopolitical tensions are pushing cybersecurity and infrastructure resilience higher on government priority lists in both the U.S. and Europe.
Against that backdrop, Actelis stands out not as a speculative concept, but as an operating company already embedded in the very networks governments are now being urged to secure. Yet it remains an under the radar microcap – for now.
For investors, that type of backdrop could create an asymmetric setup. As spending on securing and modernizing civilian infrastructure accelerates, as recent warnings suggest it may, companies already positioned with validated deployments and established government relationships are strong candidates to benefit disproportionately. Actelis is one of the few pure-play names operating in that narrow intersection of legacy infrastructure, rapid deployment, and cyber hardening.
The infrastructure security problem is no longer hypothetical. The question now is which companies are positioned to benefit as governments move from warnings to action. Actelis is small, under-the-radar, and already in the field—conditions that, in changing geopolitical environments, can sometimes precede a massive repricing.
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