Mark Hughes, president of BT Security, said deploying new equipment will "come at a cost" and said BT has concerns that the Bill is not clear that communication service providers will be able to recover the costs they incur in complying with the legislation from the government.
Hughes said communication providers should be reimbursed for their costs in complying but said that, under current proposals, BT alone would be likely to incur costs totalling "the lion's share" of the £170.4 million the government has estimated will cost communication providers in upgrading their systems to comply with the requirements to retain ICRs.
Hughes said that placing a cap on the costs companies will be able to recover for deploying new systems would act as a safeguard against the deployment of a "disproportionate technical solution that is over-intrusive".
Hugh Woolford, director of operations at Virgin Media, said his company has estimated that it would incur costs of "tens of millions" of pounds to meet the requirements of the Bill.
Adam Kinsley, director of policy and public affairs at Sky, said "there will need to be investment in new types of technology" if Sky is to have the capability to capture ICRs that reveal up to "the first slash" of a web address visited and not more specific details of the precise content someone has viewed.