AT&T Inc. is one of the largest international mobile service providers. The company, however, may suffer a hit to its reputation after reports of its alleged data spying for intelligence group NSA surfaced. The company has had a longstanding relationship with NSA, according to reports that have come up this weekend. Analysts say that the company's involvement in surveillance programs of the US government has previously been disclosed.
The National Security Agency is a surveillance and intelligence group under the US government. The existing relationship of AT&T and NSA may have surpassed those of the company's competitors. Documents by government contractor Edward Snowden have been reviewed a few days ago. And analysts have branded the AT&T-NSA connection as a 'highly collaborative' one.
According to a Bloomberg report, analysts don't expect any effect on AT&T's stock price stemming from the issue. What is to be expected is a blow on its reputation. Recon Analytics LLC's Roger Entner said, "They might get blow-back," adding that the issue places the company in a position to really evaluate whether or not it will continue on with the collaboration with NSA, and if it chooses to, to what extent.
A document cites the telecommunications company's "extreme willingness to help", which adds further scrutiny and a harder knock to its image. Since the Sept. 11, 2001 attacks, phone companies have been compelled to give the government data regarding their customers as part of surveillance programs. The Dallas company abides by government laws with its participation.
AT&T's spokesman, Fletcher Cook, said in an e-mail, "We do not provide information to any investigating authorities without a court order or other mandatory process other than if a person's life is in danger or time is of the essence." He cited kidnapping as one such situation wherein the company needs to disclose necessary information. NSA has not commented on the issue.
