All this amazement and no-one 7 years or more ago raised an eyebrow. I read a small article at the time in the Torygraph (I never buy it) to the effect that this was mandated for all internet providers and all phone networks to keep records of all source and destination numbers/URLs and more sinister - locations. I don't remember the time limit, possibly 6 months, perhaps in the guise of increasing that to 1 year they have slipped in a clause about "tapping".

If you want drug and people traffickers to be dealt with, dangerous drivers brought to justice - well? How ya gonna do it? Police breathalise you after an accident, ask for your mobile phone, well how many people do you know who still risk it on both counts? As an old colleague many years ago said "Honest people have nothing to fear from harsh laws". If that discomforts you - try the alternatives, the Mafia have ways you know!

Here are a few TED.com speakers on how they dealt with it, yer gotta admire their chutzpa:
FBI hassle, the sequel!
German phone company data requested
If you worry about US/UK snooping try the Stassi for size
When they watch you they HAVE to listen - so....