Revenues driven by explosive growth in data management needs

All it took was six months and some of the worst press any corporation could possibly have. Verizon and AT&T will finally begin issuing transparency reports of government requests for their data.

Police Made 1.1 Million Data Requests to Cellphone Carriers in 2012

After the summer's string of revelations about NSA surveillance, companies like Google, Facebook and Microsoft have united in protest, published transparency reports and asked for permission to reveal even more information.
Cellphone companies like Verizon or AT&T have thus far remained silent when it comes to NSA. Major carriers are, however, now revealing that they received 1.1 million data requests from local law enforcement agencies in 2012, including requests for location data, text messages, browsing history and call logs.
The data, which does not include NSA or national security-related investigations, was revealed on Monday by the seven major U.S. cellphone carriers, answering a series of questions posed by Sen. Ed Markey (D-Mass.). Their answers open a small window into how AT&T, Verizon, Sprint, T-Mobile and others collaborate with police across the country.
The 1.1 million number refers to the number of requests the companies received, not necessarily how many they responded to. AT&T, however, reported that it denied only 1,300 out of a total of 297,500 requests, while Verizon said it "does not track" whether they provided the requested data or not.
By comparison, in 2011, based on numbers also reported at Markey's behest, carriers received 1.3 million data requests. But that number isn't directly comparable to this year's total, since Sprint refused to reveal data this time around, arguing that its systems make it impossible to reveal such a number.
The telecoms also reported 9,000 so-called "cellphone towers dumps," where cops ask for all phone numbers that connected to one or more towers at certain times, which could affect hundreds of thousands of phone numbers, revealing customers' precise locations at a certain point in time.
As it turns out, one in four law enforcement agencies have used cell tower dumps, according to a report published on Sunday by USA Today.
The carriers' reports also revealed that not all companies require warrants when releasing customer data.
For example, AT&T doesn't require a warrant when releasing historical (i.e., not real-time) cellphone location data, only a simple court order. And the content of text messages older than 180 days is released by AT&T with a court order or a subpoena. Verizon requires a signed court order or a search warrant for historical data, but doesn't provide real-time location data at all, and it always requires a warrant for the content of texts.
"If the police want to know where you are, we should know why,” said Markey in a statement. "When law enforcement access location information, it's as sensitive and personal as searching an individual’s home and should be treated commensurately."
For Markey, these numbers and the carriers' varying practices are cause for concern, and they underscore the need for privacy reforms.
"As law enforcement uses new technology to protect the public from harm, we also must protect the information of innocent Americans from misuse," Markey said in a statement. "We need a 4th Amendment for the 21st century. Disclosure of personal information from wireless devices raises significant legal and privacy concerns, particularly for innocent consumers." Markey also announced he plans to introduce his own legislation to add warrant requirements to such data requests.
During the last year, Montana and Maine were the first states to make warrants a requirement when cops request cellphone location, and the New Jersey Supreme Court ruled along the same lines as well.
The USA Today investigation also revealed that 25 police departments own Stingray devices, machines the size of a suitcase that act as cell towers and can surreptitiously track cellphone users' locations and intercept conversations by tricking cellphones into connecting to them.
36 more police departments, however, declined to disclose if they've ever used Stingrays, or if they have ever requested cellphone tower dumps.
Both Stingrays and cell tower dumps are criticized by privacy advocates for their wide reach. To target one or a few suspects, critics say, police end up gathering information on thousands of unrelated customers. Stingrays, which are also called IMSI catchers, intercept data from all phones within a mile, according to USA Today.
Privacy and digital liberties advocates have also pointed out that the use of these devices is often secret, and there's no clear regulation limiting their use.
Markey's inquiry also revealed how much the U.S. law enforcement agencies have paid carriers for their surveillance requests. AT&T received a $10 million reimbursement, T-Mobile got $11 million, and Verizon was paid slightly less than $5 million.
Finally, the companies' practices differ also in how long they retain these types of data — which determines how far back in time cops can go. Most retain data for six to 18 months, but AT&T keeps data for up to five years.