"For example, it is possible and indeed highly likely that this type of monitoring would result in the collection and retention of data on users who are outside the UK. This has the potential to place us in legally untenable position with respect to privacy."

O2 also criticised the Bill by saying that if it were required to collect any data that 'happens to traverse' over its network this will introduce "expensive duplication, drastically reduce the usefulness of data collected and create a harsh commercial imbalance in the communications industry."

Virgin Media also focused on data retention as its primary concern and claimed that widening the scope could impact its commercial relationships.

It said: "Virgin Media currently enjoys good working relationships with a range of third parties, both domestically and internationally. In many cases, Virgin Media makes their applications and services available to its customers through, for example, its TiVo service."

"If Virgin Media is legally obliged to provide data from such third parties, this may well damage its commercial relationship with those parties and other third parties, particularly those based overseas."