Mastering the Internet

I read today about the rumours that the U.K Government plan( called Mastering the Internet) to increase monitoring of Internet usage. I do not know if the rumours are true but they help us to sell security solutions. I spoke to a customer today who has bought a VPN solution from an U.K. operator. His conclusion is that he cannot continue that service anymore as he sees that operators will have to store his secret information in the future. According to him this is the same for all 3-party security providers that also operates a network (he also mentioned an Canadian mobile phone provider..). He will now build and operate his own solution..and make sure that all traffic always is encrypted. During the discussion he also realised that he uses so called MPLS lines from the same operator to connect branch offices...so most of his internal traffic is un-encrypted as well...and is possible to monitor.
I wonder how the operators will deal with this. I think that they have been very silent. Maybe they are afraid to loose customers.