& cplSiteName &

Verizon Responds to German Spying Concerns

Mitch Wagner
6/26/2014
50%
50%

Verizon, which reportedly lost a contract for German services over allegations of US government spying, responded to those concerns Thursday. "Verizon Germany is a German company and we comply with German law," Detlef Eppig, managing director of Verizon Germany, said in a terse response.

Germany said this week that it is canceling its contract with Verizon Communications Inc. (NYSE: VZ), following Edward Snowden's NSA spying allegations. Germany severed the Verizon contract as part of an overhaul of the government's communications infrastructure. Germany says it's giving the work to Deutsche Telekom AG (NYSE: DT). (See Verizon's German Deal Could Be Just the First to Fall.)

Eppig said in his response emailed to reporters:

That blog post, "Thoughts on Foreign Data Storage and the Patriot Act," is dated Jan. 27 and says Verizon received no demands for data stored in other countries last year. It goes on to say: "Our view on the matter is simple: the U.S. government cannot compel us to produce our customers' data stored in data centers outside the U.S., and if it attempts to do so, we would challenge that attempt in court."

Even though Section 215 of the USA Patriot Act "allows a court to issue an order requiring a company operating in the U.S. to produce certain business records, it does not give the U.S. government the power to act outside the U.S.," the blog states. "More importantly, Section 215 does not grant the U.S. government access to customer data stored in the cloud; it only applies to business records of the cloud provider itself. So the U.S. government cannot use Section 215 to compel a company to produce customer data stored in data centers outside the U.S." (emphasis in original).

Search warrants and subpoenas can't be enforced outside the US, and Section 702 of the USA Patriot Act doesn't let the US government compel a US company to produce customer data stored in a data center outside the US, because the US company doesn't have "possession, custody or control of that data," the blog said. "For all these reasons, we do not believe the U.S. government may lawfully demand that Verizon turn over customer data stored in data centers outside the U.S., and if it were to do so, we would oppose the request in court."

The US government can use the Mutual Legal Assistance Treaty process to request help from local, in-country law enforcement agencies, Verizon says.

The company seems to be trying to say it's not cooperating with US attempts to spy on Germany -- without actually saying so. It does not explicitly say it hasn't given the US access to German data. And the company did not respond to our other questions:

  • Has Verizon lost this contract? What is its value?
  • How long has Verizon been serving the German government?
  • What does Verizon's involvement entail? What services does it provide?
  • Have any other governments or organizations expressed concern? Are any other contracts at risk?

If you have any inside information on what's going on here, leave a comment below or email me directly at wagner@lightreading.com.

— Mitch Wagner, Circle me on Google+ Follow me on TwitterVisit my LinkedIn profileFollow me on Facebook, West Coast Bureau Chief, Light Reading. Got a tip about SDN or NFV? Send it to wagner@lightreading.com.

(23)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
Page 1 / 3   >   >>
nasimson
50%
50%
nasimson,
User Rank: Light Sabre
7/7/2014 | 10:43:43 AM
Re: Verification
Thanks Joe for a detailed insight. I can now see why Estonia is so important in European cloudspace. Lets see how it turns out!
Joe Stanganelli
50%
50%
Joe Stanganelli,
User Rank: Light Sabre
7/6/2014 | 7:17:17 AM
Re: Verification
@nasimson:

My rationale for mentioning Estonia is that twofold:

1) This is not just a "random" European country.  From what I understand, the Tallinn University of Technology is offering great programs (taught in English, at that) that are growing.

2) The President of Estonia, Toomas Hendrik Ilves, chairs the European Commission's Cloud Partnership -- an organization of European countries focused on standardizing and jointly purchasing cloud solutions.  Ilves has also seized the opportunity of the NSA PRISM scandal to rally his European compatriots to stick together and team up for Eurocentric solutions that cut the US cloud out.

I think it may be an exciting time to pursue a cloud technology leadership role in Europe -- particularly in Estonia.
nasimson
50%
50%
nasimson,
User Rank: Light Sabre
7/6/2014 | 2:10:51 AM
Re: Verification
>   I think we will see a growing cloud market not just in Germany,
> but in European countries that formerly have not been particualrly
> significant players in the cloud sector.  Estonia, in particular, is one
> I would keep an eye on.

@ Joe: I can see that cloud services would grow in Europe in this context. However, why do you mention Estonia in particular? All that I know is that is a tiny little country in East Europe.
Joe Stanganelli
50%
50%
Joe Stanganelli,
User Rank: Light Sabre
6/30/2014 | 11:41:19 PM
Re: Verification
> "Yeah, but we expect the spies to not get caught."

SNAP!


Joe Stanganelli
50%
50%
Joe Stanganelli,
User Rank: Light Sabre
6/30/2014 | 11:36:21 PM
Re: Verification
@Michelle: It's all Marketing 101 (well, maybe not 101, but still, pretty simple).  Yes, people may "secretly" know the dark truth about you, but if you keep the focus on your rivals, say it first, say it loudly, say it often, then you control the messaging, and thus the perception.

Yeah, those secret things people think they know about you MIGHT be true, but the bad stuff about your rivals is DEFINITELY TRUE and REALLY BAD.
pcharles09
50%
50%
pcharles09,
User Rank: Light Beer
6/30/2014 | 5:58:44 PM
Re: Verification
I don't think they're unclear on pulic servitude. I think they just have an air of elitism that makes them think they can have their cake & eat it too. Why not, especially since most people are not involved in their local & state government.
Mitch Wagner
50%
50%
Mitch Wagner,
User Rank: Lightning
6/30/2014 | 2:09:22 PM
Re: Verification
Yeah, but we expect the spies to not get caught. 

We've seen with Dianne Feinstein how government officials expect to have privacy rights not shared by the common citizenry. They're unclear on the concept of "public servants."
Mitch Wagner
50%
50%
Mitch Wagner,
User Rank: Lightning
6/30/2014 | 2:07:20 PM
Re: Verification
nasimon - The business is going to Deutsche Telekom, a local company. Local to Germany, that is. 
Michelle
50%
50%
Michelle,
User Rank: Light Sabre
6/30/2014 | 10:17:52 AM
Re: Verification
@Joe I have seen European cloud computing customers move data away from US based data centers in an attempt to avoid US spying activities. This is an interesting trend considering the level of snooping done round the worls. Do other countries' governments really believe citizens are totally unaware of thier activies? 
Joe Stanganelli
50%
50%
Joe Stanganelli,
User Rank: Light Sabre
6/29/2014 | 10:37:08 PM
Re: Verification
> What do you think will happen next?

 


I think what will happen next is exactly what the German government says will happen next.  They'll move their business to local companies while trying to keep Germans from paying too much attention to the recent revelations in Spiegel about their own intelligence practices.

Ever since these leaks happened, the EU countries have been united in trying to use the news to their advantage to build and mobilize their own cloud industries (never mind, in some cases, their own parts in these surveillance activities).  I think we will see a growing cloud market not just in Germany, but in European countries that formerly have not been particualrly significant players in the cloud sector.  Estonia, in particular, is one I would keep an eye on.
Page 1 / 3   >   >>
Educational Resources
sponsor supplied content
Educational Resources Archive
From The Founder
Download our complete guide to de-risking NFV deployment in 2016, including:
  • An eight-step strategy to deploying NFV safely, based on input from the companies that have already started virtualizing their production networks.
  • Interviews with leading executives at Colt, AT&T, Deutsche Telekom, Cisco, Nokia, ZTE, Ericsson and Heavy Reading.
  • Flash Poll
    Live Streaming Video
    Prepping for the Future: Upskill U Explained
    During this short kick-off video, Doug Webster, Vice President of Service Provider Marketing, Cisco, and Light Reading’s CEO & Founder Steve Saunders give an overview of Upskill U.
    LRTV Interviews
    AT&T Expert on the Key Pillars of UC

    4|29|16   |   03:58   |   (0) comments


    Vishy Gopalakrishnan, AVP of product marketing at AT&T, talks about the three developments that are making unified communications and collaboration secure and reliable for enterprise users.
    LRTV Documentaries
    LRTV Report: Mobile Core Innovation

    4|28|16   |   25:32   |   (0) comments


    Hear from multiple industry experts from Deutsche Telekom, SK Telecom, Heavy Reading, Huawei, Cisco, Ericsson, Nokia, NEC and many more about developments in the mobile core as operators virtualize their IMS and evolved packet core systems and prepare for a 5G world.
    LRTV Huawei Video Resource Center
    NFV World Congress Highlight

    4|26|16   |     |   (0) comments


    The highlight of the NFV World Congress contains exciting telecom news. Join us for an inside look at Huawei's ICT 2020 plan and its latest collaboration with industry leaders.
    LRTV Interviews
    Unified Comms Finds Its Voice

    4|25|16   |   03:44   |   (0) comments


    Peter Quinlan, VP of UCC Product Management at Tata Communications, talks about the evolution of the unified communications and collaboration services sector and how voice is now a big part of current developments.
    LRTV Documentaries
    So... What Do We Do Now?

    4|25|16   |   03:24   |   (0) comments


    After a long hiatus, Max Dingman, the CEO of a GeeGhiz, returns for a motivational board room pep talk.
    LRTV Documentaries
    NAB 2016 Highlights

    4|21|16   |     |   (0) comments


    Light Reading's Cable/Video Practice Leader Alan Breznick climbs down from the slots to tell us about the latest news in broadcast technology at NAB 2016 in Las Vegas.
    Between the CEOs
    CEO Chat: Deepfield's Craig Labovitz

    4|21|16   |     |   (0) comments


    In this latest installment of the CEO Chat series, Craig Labovitz, co-founder and CEO of Deepfield, sits down with Light Reading's Steve Saunders in Light Reading's New York City office to discuss how Deepfield fits in with the big data trend and more.
    Shades of Ray
    Leading Lights 2016: Shortlists Announced

    4|20|16   |   0:53   |   (0) comments


    The judging is over and the Leading Lights 2016 shortlists have been published -- you can see who made the cut by clicking on this link.
    LRTV Custom TV
    Introducing MulteFire – Qualcomm at MWC 2016

    4|18|16   |   3.29   |   (0) comments


    MulteFire is the latest option for using LTE in unlicensed spectrum. As oppose to its close 'siblings', LAA and LTE-U, MulteFire operates solely in unlicensed spectrum, which enables it to offer the best of two worlds – LTE-like performance with WiFi-like deployment simplicity. In this interview, Sanjeev Athalye, Sr. Director, Product Management at Qualcomm ...
    Between the CEOs
    CEO Chat: Grant Van Rooyen of Cologix

    4|18|16   |     |   (0) comments


    Grant van Rooyen, president and CEO of Cologix, sits down with Steve Saunders, founder and CEO of Light Reading, in the vendor's New Jersey facility to offer an inside look at the company's success story and discuss the importance of security in the telecom industry.
    LRTV Huawei Video Resource Center
    ONS 2016 – Demonstration of Huawei's NetMatrix Multi-Vendor SDN Orchestrator

    4|15|16   |     |   (0) comments


    This demonstration shows how Huawei's NetMatrix SDN Orchestrator (SDN-O) addresses an operator's core service agility needs for services spanning multi-domain, multivendor networks: it includes a demonstration of:
    - Rapid New Service Design: using YANG to model a complex example of multi-domain, multivendor L3VPN network connectivity service that ...
    LRTV Custom TV
    AT&T Wants to Own North Carolina

    4|15|16   |     |   (1) comment


    Venessa Harrison, president of North Carolina for AT&T, tells how the company will expand its GigaPower service beyond the seven N.C. cities it already serves.

  • This blog, sponsored by AT&T, is the second part of a ten-part series examining next-generation broadband technologies titled "Behind the Speeds."
  • Upcoming Live Events
    May 23, 2016, Austin, TX
    May 23, 2016, Austin Convention Center
    May 24-25, 2016, Austin Convention Center, Austin, TX
    September 13-14, 2016, The Curtis Hotel, Denver, CO
    December 6-8, 2016,
    June 16-18, 2017, Austin Convention Center, Austin, TX
    All Upcoming Live Events
    Infographics
    A new survey conducted by Heavy Reading and TM Forum shows that CSPs around the world see the move to digital operations as a necessary part of their overall virtualization strategies.
    Hot Topics
    Ultra-Broadband Summit, Hong Kong
    Iain Morris, News Editor, 4/27/2016
    WiCipedia: Woman Cards & Bitch Switches
    Sarah Thomas, Director, Women in Comms, 4/29/2016
    FCC Poised to Re-Regulate Wholesale Access
    Carol Wilson, Editor-at-large, 4/28/2016
    Amazon AWS Reports $2.6B Quarterly Revenue, Up a Colossal 64%
    Mitch Wagner, West Coast Bureau Chief, Light Reading, 4/28/2016
    Mitel Asks: What Time of Day Do You Shower?
    Mitch Wagner, West Coast Bureau Chief, Light Reading, 4/25/2016
    Like Us on Facebook
    Twitter Feed
    BETWEEN THE CEOs - Executive Interviews
    In this latest installment of the CEO Chat series, Craig Labovitz, co-founder and CEO of Deepfield, sits down with Light Reading's Steve Saunders in Light Reading's New York City office to discuss how Deepfield fits in with the big data trend and more.
    Grant van Rooyen, president and CEO of Cologix, sits down with Steve Saunders, founder and CEO of Light Reading, in the vendor's New Jersey facility to offer an inside look at the company's success story and discuss the importance of security in the telecom industry.
    Animals with Phones
    Live Digital Audio

    Of all the tech companies in the Valley, Intel has made the most aggressive commitment to building a diverse and inclusive workplace culture. It's doing so by taking concrete, measurable steps, making a large financial investment and through a commitment to complete transparency about its progress. In this radio show, WiC Director Sarah Thomas will be joined by Shlomit Weiss, Intel's Vice President, Data Center Group, and General Manager of Networking Engineering, who will share with us why Intel is tackling this huge challenge, how and to what effect. She will also discuss her unique experiences leading development of Client SOC development in the past and today leading development of all of the chipmaker's silicon hardware for networking IPs and discrete devices and managing a team of 600 engineers across Israel, Europe and the US.