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It would also loosen some restrictions on law enforcement access to the records.
"The move to supernodes was not intended to facilitate greater law enforcement access to our users' communications," Mr. Gillett wrote.
But other companies may build in backdoors to accommodate law enforcement access with minimal impact to the business bottom line.
Member states are now allowed to bring in legislation to mandate data retention and law enforcement access.
Russia wants to forge an agreement akin to a nuclear arms treaty, but favors stopping short of law enforcement access.
The Russians, who with only minimal success, had for years sought to make these companies provide law enforcement access to data within Russia, reacted angrily.
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But he did not say how law enforcement accessed the incriminating information on the phone, raising questions about whether the phone was encrypted.
But other aspects of Obama's proposals have attracted criticism for expanding intelligence and law-enforcement access to private data, which privacy advocates worry will leave that data less secure.
A restriction known as the Tiahrt Amendment blocks law-enforcement access to tools like gun traces, gun-purchaser information, and aggregate gun data.
"Law enforcement has access to more data than they've ever had access to," Matthew Green, an assistant professor of computer science at Johns Hopkins University, told The Huffington Post.
@awinograce Grace is a legal professional working on enforcement and access to rights for vulnerable groups.
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