The US' Central Intelligence Agency (CIA) is reportedly paying telecommunications giant AT and T more than 10 million dollars per year for access to its database of phone records.
Government sources said that the intelligence agency gives the phone numbers of terrorist suspects to the company, which then searches its database and hands over phone records.
According to news.com.au, the CIA is not allowed to spy on Americans and most of the call records are between two international numbers and if a call involves a US phone number some of the information is not disclosed.
The recent revelations by former NSA analyst Edward Snowden have exposed the mass surveillance programmes carried out by the US on citizens as well as many global leaders, thereby souring the country's ties with its allies.