Communications carriers are “indemnified” under 18 USC § 2511(2)(a)(ii)(B):

...No cause of action shall lie in any court against any provider of wire or electronic communication service, its officers, employees, or agents, landlord, custodian, or other specified person for providing information, facilities, or assistance in accordance with the terms of a court order, statutory authorization, or certification under this chapter.

In the order on motions to dismiss for Hepting v. AT&T (this is being appealed in the 9th Circuit):

Plaintiff: On information and belief, the above-described acts [by defendants] of interception, disclosure, divulgence and/or use of Plaintiffs’ and class members’ communications, contents of communications, and records pertaining to their communications occurred without judicial or other lawful authorization, probable cause, and/or individualized suspicion.

http://www.eff.org/files/filenode/att/308_order_on_mtns_to_dismiss.pdf

Judge Walker said that “revealing whether AT&T has received a certification to assist in monitoring communication content should not reveal any new information that would assist a terrorist and adversely affect national security....Accordingly, the court DENIES the government’s motion to dismiss based on the statutory privileges and DENIES the privileges with respect to any certification that AT&T might have received authorizing it to monitor communication content.” (ibid.)

So, I think it's more likely that AT&T (and others) can't show that some or all of the spying was certified and they and the administration are terrified that it will come out. Maybe the holdout got on board because the warrantless surveillance was stopped last January, or because of the PAA?

I forgot to credit that 18 U.S.C... bit:

Update III http://www.salon.com/opinion/greenwald/2007/09/19/democrats_fisa/index.html (where else?)

The Bush administration said on Saturday U.S. telecommunications companies have agreed to cooperate "for the time being" with spy agencies' wiretaps, despite an ongoing battle between the White House and Congress over new terrorism surveillance legislation.

The Justice Department and the Office of the Director of National Intelligence issued a joint statement saying wiretaps will resume under the current law "at least for now."

"Although our private partners are cooperating for the time being, they have expressed understandable misgivings about doing so in light of the ongoing uncertainty and have indicated they may well discontinue cooperation if the uncertainty persists," the statement said.

On Friday U.S. Attorney General Michael Mukasey and Director of National Intelligence Michael McConnell said telecommunications firms have been reluctant to cooperate with new wiretaps since six-month temporary legislation expired last weekend. As a result, they told Congress, spy agencies have missed intelligence.

http://www.reuters.com/article/newsOne/idUSN2229053420080224

http://www.usdoj.gov/opa/pr/2008/February/08_opa_137.html

I'm going to throw caution to the wind for a change and call this a huge victory.

The Bush administration said on Saturday U.S. telecommunications companies have agreed to cooperate "for the time being" with spy agencies' wiretaps, despite an ongoing battle between the White House and Congress over new terrorism surveillance legislation.

The Justice Department and the Office of the Director of National Intelligence issued a joint statement saying wiretaps will resume under the current law "at least for now."

"Although our private partners are cooperating for the time being, they have expressed understandable misgivings about doing so in light of the ongoing uncertainty and have indicated they may well discontinue cooperation if the uncertainty persists," the statement said.

On Friday U.S. Attorney General Michael Mukasey and Director of National Intelligence Michael McConnell said telecommunications firms have been reluctant to cooperate with new wiretaps since six-month temporary legislation expired last weekend. As a result, they told Congress, spy agencies have missed intelligence.

http://www.reuters.com/article/newsOne/idUSN2229053420080224

I'm going to throw caution to the wind for a change and call this a huge victory.

"And then the brave boys of the administration had little sit down chats with the big meanies at the telecoms who were taking their toys and running home with them."

They could have saved themselves the trouble by extending the PAA. This forces them to tone down the fearmongering and I'm hoping it buys us some time - it does remove the so-called urgency to pass the Cheney/Rockefeller's bill.

213-197

Why? Because, for over two years, I've read Glenn Greenwald. He always seemed to have faith (when few did, including me) that the American public could get beyond sound bytes and understand and do the right thing. For some damned reason, that kept me going. Then, slowly, came the evidence. Just look through these pages to see it – the netroots having a measurable effect, House Democrats (even many Blue Dogs) rejecting telecom immunity, a Democrat winning in Hastert's district. That's only a few recent examples. The list goes on and none of it happened without a lot of Americans understanding more than sound bytes.

I now believe that enough of the American public are capable and willing to “step up and receive the speech in the same spirit in which it was given.” I'll even go further – I believe that Obama's speech will have a positive effect on and will help hearten many Democrats in Congress. We're getting somewhere, after all.

I feel sick.