A lucky coincidence of economics is responsible for routing much of the world's internet and telephone traffic through switching points in the United States, where, under legislation introduced this week, the U.S. National Security Agency will be free to continue tapping it.

But contrary to recent assertions by Bush administration officials, the proportion of international traffic entering the United States is dropping, not increasing, experts say.

International phone and internet traffic flows through the United States largely because of pricing models established more than 100 years ago in the International Telecommunication Union to handle international phone calls. Under those ITU tariffs, smaller and developing countries charge higher fees to accept calls than the U.S.-based carriers do, which can make it cheaper to route phone calls through the United States than directly to a neighboring country.

Exchanges in Hong Kong and London are emerging as local hubs for Asian and European traffic, while new fiber cables running north and south from Japan around to Europe will divert traffic from the trans-America route. Meanwhile, more countries are building their own internal internet exchanges.

"Because the decisions are made by the private sector, you're always going to go the direction where you have the cheapest fiber," Woodcock says. "That's likely to be through the U.S. for a while yet, (but) that's changing as more and more fiber gets installed around South Asia."

The trend may leave U.S. spooks longing for a simpler time; like 1992, when the first -- and at the time, only -- internet exchange point, called MAE-East, was erected in Washington D.C.

"All the traffic in the world went through Washington," Woodcock says. "But it was coincidence that it was Washington, more or less, and it was private-sector. And it probably wasn't tapped for at least a couple of years."

I don't think it was luck and coincidence as much as it was convenience and forethought.