If I had "Mod Points", I'd mod you up for that observation...
Several things interest me about this particular piece of legislation:-
1. It Doesn't Work  - When the United States located Osama Bin Laden in Pakistan, it was revealed that no telephone line, no internet connection and no cell phone was connected to the compound in which he lived. In fact, it was a "black spot" for services. Instead, trusted couriers carried encrypted USB sticks by hand. Pretty good OpSec, by all accounts. In other words - the really dangerous terrorists out there do not use the internet to plan their activities or communicate with each-other; they are too smart for that
2. It Doesn't Work  - When major incidents have happened [such as was the case with the Paris Attacks, the monitoring of the perpetrators [which had been taking place] was not effective in *STOPPING* the atrocity, it was only useful for telling us that within 24 hours of the incident, the partner of one of the terrorists had fled the country and entered Syria via Turkey. Yes, this might be useful at stopping secondary or tertiary attacks, or at finding the support network, but it won't actually stop the event itself.
3. It Doesn't Work  - When investigators looked into the perpetrators of the Boston Bombing in the wake of the marathon attacks, it was again discovered that the perpetrators had been monitored by the security agencies, but that even though they had been "red flagged", the responsible agency had discounted the information because they had so much other data to review. The blanket dragnet meant that they spent all their time triaging initial cuts of data, not enough time following up on reasonable leads.
4. It's An Erosion of the Presumption of Innocence - The fact that *everyone* is caught up in the net [unless you are an MP or member of the judiciary, etc] means that every single person in the UK is presumed guilty of an offence - without being charged. The data is being collected "in case you do something bad"...
5. The Damaging Risk Of Leaks - There have been too many examples of data theft or accidential leakage to bother citing examples here; the fact is that such a treasure-trove of data would be too tempting for organised criminals. In the United States, insurance companies reported that in the wake of the TSA requirement for "approved locks" on all airline luggage, claims against theft of valuables from checked luggage have sky-rocketed. A system set up for one benefit - passenger safety - is being abused by another threat - light-fingered airport staff - resulting in millions being claimed, and tens or hundreds of thousands of passengers becoming victims every year. We should expect the same sort of widespread damage once the data is being collected. Remember - it is not being collected and held by a government agency, but by the telecommunications providers. Like TalkTalk. [ Data Leak Central ].
6. Erosion of Basic Freedoms - Perhaps the most significant change, however, is the way that the relationship between the state and the citizen changes as a result of this. Unlike, say, the US [which has a constitution], the UK has no such basic safety net for human rights. What this means is that more and more powers are being given to government and which are being mis-used.
As an example of this, when researchers looked into a similar and previously enacted piece of legislation [the Regulation of Investigatory Powers Act], it was discovered that among the more notable and widespread uses of the law came from actions taken by local councils who were spying on residents suspected of "cheating" the school catchment area process. This is a mechanism by which children are enrolled in schools based on their home address. In other words, they way that legislation is "sold" to voting MPs and the way that it is actually used are two entirely different things.
But lastly, perhaps, is the fact that this would/will put so much power in the hands of the state that it makes the individual citizen defenceless against abuse by that state. And that is a very frightening place for us to be.