"Europe's telecom mega-corporations are perfectly suitable at working with their own local intelligence agencies, then sharing data with the NSA."

Exactly, they share data THEY WANT TO SHARE, on their terms.

There is a very real and justified need to share information regarding criminals like terrorists, or murders.

But NSA scandal is about a different thing, mainly indiscriminate spying of every human being, inside and outside US borders without oversight.

This is a rather optimistic view, I think.

http://www.theguardian.com/uk-news/2013/nov/01/gchq-europe-s...

With my countries local intelligence agency I have a minuscule, but nonzero chance of having influence over it by the means of elections and some protection by local law. Neither of the two exist when ATT does the collection for the NSA.