So how does that affect companies such as Vonage who offer a "landline" solution that actually uses VOIP?

Time to install skype on my mobile and change price plans to something with a bit of data.

Well, VoIP me if there's not a serious loophole in this regulation. I'm not entirely certain what extra abilities it gives elfuzz, especially when Ozzy Bin Liner and his mates find out that Skype don't have to save this content. Seems like it will just help the 'casual investigation' rather than Terror Op Investigations by 5+6.

But hey, as well the tin hat brigade know, its not like Big Brother isn't aware of what we're all doing already.

Sounds like a scam to get everyone to use the internet in the belief they're safe from prying eyes. ISP logging here we come.

I recently heard a speaker at a "white hat" conference (TRISC) advocate the use of tor. I'm waiting for someone to introduce an encrypted version of Skype.

> I'm waiting for someone to introduce an encrypted version of Skype.

Don't hold your breath. You'll never get one until it becomes open source (i.e. never). Skype claim they are already encrypted, but there's no way to know how good it is. Skype is one of those things that would be better if it weren't there: it's a deliberately proprietary protocol which has uses encryption to prevent interoperability, and which has displaced the superior and already-available standards.

Answer: use SIP and something like PGPfone.