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The plan initially suggested when Labour was in government was for a giant database to store the details of all mobile phone calls and internet traffic, such as who called who, or who emailed who when, but not the content of the phone calls or emails.
BBC: A person using a computer
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Safeway, a Britain-based retailer, built a 2-terabyte database with IBM to store almost four years' worth of customer data.
FORBES: From nuclear bombs to net assets
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The entire crowd-sourced database is too big to store on an iPhone, so we download an appropriate subset (cache) onto each iPhone.
FORBES: We Don't Want To Know Where You Are, Apple Says