Honestly I'd be more happy with the telecom companies doing it. They can do much less harm with any data they get.
The only solution is for the data never to exist at all.
As an aside, when you think of corporations try not to think about the imagery they bathe you in. Think of a serial killer sidling up next to you all smiles and compliments. That would be more accurate.
It's true that lots of corporations do unethical things, but you also should keep in mind that at its heart, it's people like you and I that are doing it. They respond to incentives like the rest of us, they (mostly) have a conscience, and generally try to do the right thing.
They're not always successful, but I don't think that your caricature is generally accurate.
As for being arrested by a corporation - that will change. The UK government for one are beginning a process of outsourcing some elements of front line policing.
At present it's anonymised and is being used for broad profiling of areas, but I can see that changing over time.
AT&T, Verizon et al can't unilaterally decide that you're a terrorist and arrest you, but the government can.
The government should be the gatekeeper for what can be done with your data, but it should not be allowed to own that data itself.