Telecoms hang up on tapping regulation
We all know that tapping goes on - we read about it in books and hear about it in the news - but rarely do we think it might happen to us. But with the passage of new legislation, it is becoming ever more likely that Big Brother will be listening to your phone calls or checking your Internet logs.
Telecom operators have recently been reminded by the infrastructure ministry about a regulation that requires them to purchase and install tapping equipment. The regulation, which is included in the telecommunications law, stipulates that all operators should purchase equipment and software that would enable them to register and archive all data transmitted via their connections, and which can be provided to select government institutions at their request. The regulation also applies to Internet service providers, which are obliged to equip their networks with logging software.
The telecom industry, however, says that the requirements are too costly and unrealistic. Some ISPs are still unclear as to whether the regulation applies to them at all.
"In its current form the law is unclear, and we are not entirely certain whether it pertains to our services or not," said one ISP representative. "But we provide our services on the basis of a TPSA connection, so we think the regulation applies to them even more so."
Mobile phone operators, which were obliged in the mid-1990s to install tapping equipment, already possess most of the required equipment, but fixed-line operators and ISPs believe the law is an unnecessary financial burden.
"We have estimated that the necessary adjustments would set us back €2.8 million, and we have filed for an 18-month deferral from complying with the regulation," said Jolanta Ciesielska, Netia's spokeswoman. Meanwhile, the country's largest telecom operator, TPSA, claims it will have to spend approximately €24 million to comply with the regulation's requirements.
Other firms have followed suit and filed postponement requests.
"We tried to understand the law, and that's why we are currently working with lawyers," said Michał Szustak, marketing director at Swedish data transmitter TeliaSonera. "I think it is likely that we will report the law to the Office of Telecommunications and Post Regulation."
Szustak added that his company would apply for a compliance postponement.
The law, stipulating the installation of tapping equipment on fixed lines, is part of a wider global trend, analysts say. With the boost in international concern for security following the events of September 11, 2001, analysts believe there is a growing tendency to control the flow of information.
"This is a trend most governments are using right now, as it makes it easier to control one's whereabouts and the flow of information," said Anna Bossong, telecommunications analyst at the London office of CA IB. "Telecom operators worldwide have been anticipating such policy shifts."
Bossong does not believe that the new law will be a heavy financial burden on the country's telecom operators since most of them have new systems, and the installation of relevant equipment should be fairly straightforward.
Other analysts confirmed this view.
"Polish firms operate using new software and new products, so the installation itself, regardless of how much it may cost, should not be too much of a difficult task for them," said an industry insider. "It's definitely not a problem of implementation.
"From the telecoms companies' point of view, these tapping systems are an unnecessary expenditure. They have been requested to install them for the benefit of state security and special services. That may be the reason for the exaggeration of the costs of the systems' implementation."
Włodzimierz Giller, telecoms analyst at Erste Securities, agrees, although he points out the decision to purchase the necessary equipment may be financially damaging for smaller firms.
"For TPSA, which had €4.3 billion income last year alone, €24 million is only a small fraction of overall funds," he said.
According to analysts' estimates, the equipment and compliance expenditure for the two largest alternative telecom operators, Netia and Telefonia Dialog, should not exceed 3% of their annual income.
The government has offered a solution for small firms which are finding it difficult to cope with the problem. Krzysztof Heller, deputy secretary of state at the infrastructure ministry, said at a recent press conference that smaller firms do not have to purchase the tapping devices and could instead lease them from larger firms, such as TPSA.
To add another dimension onto the issue, information has surfaced that Andrzej Zoll, the commissioner for civil rights protection, may get involved in the proposed regulation. Although the commissioner's press office refused to comment on the rumours, it said that Zoll expressed interest in the matter after his office received a letter pointing out that the proposed regulation is unconstitutional. According to legal stipulations, the tapping of phone conversations can be done in a time period of three to six months.
Telecom operators have recently been reminded by the infrastructure ministry about a regulation that requires them to purchase and install tapping equipment. The regulation, which is included in the telecommunications law, stipulates that all operators should purchase equipment and software that would enable them to register and archive all data transmitted via their connections, and which can be provided to select government institutions at their request. The regulation also applies to Internet service providers, which are obliged to equip their networks with logging software.
The telecom industry, however, says that the requirements are too costly and unrealistic. Some ISPs are still unclear as to whether the regulation applies to them at all.
"In its current form the law is unclear, and we are not entirely certain whether it pertains to our services or not," said one ISP representative. "But we provide our services on the basis of a TPSA connection, so we think the regulation applies to them even more so."
Mobile phone operators, which were obliged in the mid-1990s to install tapping equipment, already possess most of the required equipment, but fixed-line operators and ISPs believe the law is an unnecessary financial burden.
"We have estimated that the necessary adjustments would set us back €2.8 million, and we have filed for an 18-month deferral from complying with the regulation," said Jolanta Ciesielska, Netia's spokeswoman. Meanwhile, the country's largest telecom operator, TPSA, claims it will have to spend approximately €24 million to comply with the regulation's requirements.
Other firms have followed suit and filed postponement requests.
"We tried to understand the law, and that's why we are currently working with lawyers," said Michał Szustak, marketing director at Swedish data transmitter TeliaSonera. "I think it is likely that we will report the law to the Office of Telecommunications and Post Regulation."
Szustak added that his company would apply for a compliance postponement.
The law, stipulating the installation of tapping equipment on fixed lines, is part of a wider global trend, analysts say. With the boost in international concern for security following the events of September 11, 2001, analysts believe there is a growing tendency to control the flow of information.
"This is a trend most governments are using right now, as it makes it easier to control one's whereabouts and the flow of information," said Anna Bossong, telecommunications analyst at the London office of CA IB. "Telecom operators worldwide have been anticipating such policy shifts."
Bossong does not believe that the new law will be a heavy financial burden on the country's telecom operators since most of them have new systems, and the installation of relevant equipment should be fairly straightforward.
Other analysts confirmed this view.
"Polish firms operate using new software and new products, so the installation itself, regardless of how much it may cost, should not be too much of a difficult task for them," said an industry insider. "It's definitely not a problem of implementation.
"From the telecoms companies' point of view, these tapping systems are an unnecessary expenditure. They have been requested to install them for the benefit of state security and special services. That may be the reason for the exaggeration of the costs of the systems' implementation."
Włodzimierz Giller, telecoms analyst at Erste Securities, agrees, although he points out the decision to purchase the necessary equipment may be financially damaging for smaller firms.
"For TPSA, which had €4.3 billion income last year alone, €24 million is only a small fraction of overall funds," he said.
According to analysts' estimates, the equipment and compliance expenditure for the two largest alternative telecom operators, Netia and Telefonia Dialog, should not exceed 3% of their annual income.
The government has offered a solution for small firms which are finding it difficult to cope with the problem. Krzysztof Heller, deputy secretary of state at the infrastructure ministry, said at a recent press conference that smaller firms do not have to purchase the tapping devices and could instead lease them from larger firms, such as TPSA.
To add another dimension onto the issue, information has surfaced that Andrzej Zoll, the commissioner for civil rights protection, may get involved in the proposed regulation. Although the commissioner's press office refused to comment on the rumours, it said that Zoll expressed interest in the matter after his office received a letter pointing out that the proposed regulation is unconstitutional. According to legal stipulations, the tapping of phone conversations can be done in a time period of three to six months.
