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PRISM could be some nifty acronym for something but i believe it is a simple one word explanation and inside joke for the general method the NSA is using to acquire data. According to the website thefreedictionary.com the definition of a prism as it relates to optics is: a transparent solid body, often having triangular bases, used for dispersing light into a spectrum or for reflecting rays of light. At some point outside of the actual physical location of a given company's data center they are intercepting the fiber optic backbone/cable that is carrying data to and from the internet to the data center. A fiber optic cable splitter is placed on the cable and all of the packets that pass through the device are sent to both their original destination and to the NSA's collection facility or data center. This could account for the vehement denials by the named companies that they are providing unfettered access to their servers. The NSA would not need internal server access if they were getting the raw feed. The infamous Room 641 in the AT&T facility in the SBC Communications Building in San Francisco, California, USA was used for a similar purpose: "...It is fed by fiber optic lines from beam splitters installed in fiber optic trunks carrying internet backbone traffic," as described on wikipedia.org in the article on Room 641.

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Q: What does PRISM stand for in regard to the NSA?
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