New laws that will give government departments and local
authorities the right to access traffic data on individuals'
Web-browsing, e-mail, and telephone calls, will push up the costs
of IT services, it was claimed this week.
Companies offering software services over the Internet and Internet
service providers (ISPs) will either be forced to raise prices or
will have to relocate offshore to avoid the economic effect of the
new laws, said Intellect, the IT and electronics suppliers'
organisation.
The group, which represents major UK software suppliers, said the
Government was going further than the Regulation of Investigatory
Powers Act intended by introducing new surveillance powers that
will impose high costs on communication service providers.
Tim Conway, policy officer at the association, said it may have no
choice but to advise service providers to look at moving their
operations offshore if the alternative is to face higher costs in
the UK.
"We are concerned that it will have an adverse effect on
profitability in this industry. We expect to see international
competitors talk about their cost advantages because they are not
subject to the legislation. The logical consequence is that we
would have to start advising our members about looking at offshore
centres," he said.
Intellect said the new laws will mean that higher costs for
companies using the application service provider model and for ISPs
will be passed on to IT departments.
Employers with company telephone and Internet networks could also
be forced to hand over the names, addresses and communication logs
of staff, under the proposed regulations.
Although the Government insists the proposed extension of the
number of agencies able to monitor e-mail is to help in the fight
against terrorism, the changes may reduce national security if
terrorists use other forms of communication, such as Internet cafes
or pre-paid mobile phones, Intellect said.
The home secretary postponed the introduction of the extension to
regulations earlier this week after a revolt by backbench MPs over
civil liberties.