Light Reading
"Verizon Germany is a German company, and we comply with German law," Verizon says following reports that Germany has canceled contracts with the US telco over spying allegations.

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
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: Moderator
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   >   >>
Flash Poll
From The Founder
It's clear to me that the communications industry is divided into two types of people, and only one is living in the real world.
LRTV Interviews
CenturyLink: Building the Case for NFV

12|19|14   |   02:14   |   (0) comments


At the 2020 Vision Executive Summit, James Feger, VP, Network Strategy & Development at CenturyLink, talks about how the US operator is approaching virtual network functions from an operational and business case perspective.
LRTV Interviews
Liberty Global Sees Business Goldmine

12|18|14   |     |   (0) comments


Steen Sorensen, VP of business services for Liberty Global, explains where the giant international MSO sees growth potential.
LRTV Documentaries
EE: The Road to 5G

12|16|14   |   16:02   |   (1) comment


Andy Sutton, the principal network architect at UK mobile operator EE, explains how his company is using Wembley stadium as a wireless test bed and how that's helping EE to plan the evolution to 5G.
LRTV Huawei Video Resource Center
Highlights of Huawei's NFV Open Cloud Forum 2014

12|16|14   |     |   (0) comments


Huawei hosted its inaugural NFV Open Cloud Forum during the SDN & OpenFlow World Congress 2014 in Düsseldorf, Germany. The Forum brought together technology thought leaders, senior executives and telecom professionals from global carriers, industry associations, as well as other partner companies in the ecosystem, to exchange views on and collectively explore how ...
LRTV Custom TV
Realizing Operators' Digital Vision

12|16|14   |   5:23   |   (0) comments


Leveraging technology is fundamental to digital transformation but understanding customers and serving them really well is at the heart of digital businesses. TM Forum lists the following as the strategic pillars of the digital business: business agility and rapid innovation, operational agility and effectiveness, IT and data centricity, plus customer centricity. ...
LRTV Documentaries
US Cellular Injects Analytics Into LTE

12|16|14   |   2:57   |   (1) comment


US Cellular's Mario Vela explains how the operator uses analytics for network planning and what comes next as the carrier looks to eke more value out of its metrics.
LRTV Interviews
How Cox Biz Plans to Keep Growing

12|15|14   |     |   (2) comments


Steve Rowley, SVP of Cox Business, details how the third-biggest US MSO intends to boost its revenues to $2 billion and beyond over the rest of the decade
LRTV Huawei Video Resource Center
Interview With Bill Zhang, Director of SoftCOM Product Management, Huawei

12|15|14   |   2:50   |   (0) comments


Bill Zhang elaborated on Huawei's open philosophy in NFV solution development and network architecture design at the SDN & OpenFlow World Congress 2014.
LRTV Huawei Video Resource Center
Event Highlights: Huawei at SDN & OpenFlow World Congress 2014

12|15|14   |   3:43   |   (0) comments


Huawei joined the 2014 SDN & OpenFlow Congress as one of the key sponsors and contributors. At the event, Huawei reinforced the openness and flexibility of its network infrastructure strategies, and provided updates on its SDN and NVF innovations. Through participations at the exhibitions, forums and speeches, Huawei encouraged the industry to "think bigger and ...
LRTV Interviews
How Cable Biz Services Hit $10B Mark

12|12|14   |     |   (1) comment


Cable operators reached $10 billion in annual business services revenues by delving deeper into their vertical markets and expanding beyond the smallest firms.
LRTV Documentaries
Mediacom Aims to Test Connected Tractors

12|11|14   |   05:07   |   (3) comments


Cable business service provider is taking its services to the 'agribusiness' sector in partnership with farm equipment specialist John Deere and is getting involved in Gigabit Cities developments.
LRTV Interviews
TWC Business Looks Beyond $3B

12|10|14   |     |   (0) comments


TWC Business Services chief Phil Meeks explains how his unit has reached $3 billion in annual revenues and what its plans are for next year.
Upcoming Live Events
February 10, 2015, The Westin Peachtree Plaza, Atlanta, GA
March 17, 2015, The Cable Center, Denver, CO
April 14, 2015, The Westin Times Square, New York City, NY
May 6, 2015, McCormick Convention Center, Chicago, IL
May 13-14, 2015, The Westin Peachtree, Atlanta, GA
June 9-10, 2015, Chicago, IL
Hot Topics
T-Mobile, BlackBerry Flirt With Reuniting
Sarah Reedy, Senior Editor, 12/17/2014
1-Gig: Coming to a Small Town Near You
Jason Meyers, Senior Editor, Gigabit Cities/IoT, 12/17/2014
Comcast Launches 4K Streaming Service
Alan Breznick, Cable/Video Practice Leader, 12/18/2014
US Carriers, You're Going to Cuba!
Mitch Wagner, West Coast Bureau Chief, Light Reading, 12/18/2014
T-Mobile Lights Up 27 Wideband LTE Cities
Sarah Reedy, Senior Editor, 12/15/2014
Like Us on Facebook
Twitter Feed
Webinar Archive