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Spying Telecoms Receive Billions in Government Contracts

by via the EFF
Monday, June 2, 2008 : The telecoms who are being sued for their cooperation in the government's illegal warrantless surveillance program have received billions in government contracts. According to Washington Technology magazine, Verizon received $1.3 billion, Sprint $839 million and AT&T $505 million in federal prime contract revenue for fiscal 2007, for a total of $2.6 billion. While the companies have been government contractors for a long time, it still represents a significant increase in revenue.
Telecom apologists like to suggest that the communications companies' motivation was not financial. As Judge Walker noted when examining EFF's allegations of dragnet surveillance: "AT&T cannot seriously contend that a reasonable entity in its position could have believed that the alleged domestic dragnet was legal." Yet, the prospect of $2.6 billion per year can go a long way to explaining why an industry might cooperate with a program far outside the limitations of the Foreign Intelligence Surveillance Act (FISA), despite the difficulty of believing it was legal.

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