Some internet service providers have been exempted from
implementing the
Data Retention Directive in an attempt to save costs.
Communications service providers (CSPs) are legally required to
retain message header data under the directive which came into
force on Monday. The Home Office estimates it will cost them £45.8m
to comply with the directive. CSPs have negotiated compensation
costs from government.
At least one small internet service provider was told that if
the Home Office had not already contacted him, he did not have to
comply with the directive. As a result he would not be able to
claim compensation.
A spokesman for the UK's
Internet Service Providers'
Assocation (ISPA), said the directive is being implemented in a
two-tier way. The reason was that the Home Office was anxious to
avoid duplicate collection of data and hence costs, he said.
"I think they reckon if they get the biggest ISPs to collect the
data they will get most of the information they want," he said.
ISPA represents about 200 ISPs, about half of whom are small
companies and resellers.
According to Ofcom's 2008
Communications Market report, the top ISPs are BT (26.5%),
Virgin Media (23.7%), Talk-Talk/AOL, Tiscali, BSkyB, Orange Home
and others (16.6%). A 2007
survey
for Ofcom showed the UK has about 686 small ISPs who earned
£740m providing internet connections to nearly two million
customers.
A Home Office spokesman refused to say which CSPs are collecting
data for the government or which have received taxpayers' money in
compensation. He said, "It is a legal requirement for all
communication service providers to comply with the directive. For
commercial sensitivity reasons we will not be disclosing a
'list'."
Kevin Peel, CEO of 4theNet
Internet, a specialist ISP for businesses, said he had great
difficulty finding someone at the Home Office to speak to about
complying with the directive. Peel finally did track down a Home
Office offical, Andrew Knight, with ISPA's help. "He basically told
us, if the Home Office had not contacted us, we should not worry
about it," Peel said. "He also said it meant we could not get any
money as a result."
The Home Office spokesman confirmed that a body is being set up
to deal with implementation issues around the directive.