And they reckon that's 80% of the cost?
If I were a telco, I think I'd opt for microfiche as the storage medium with rotating unicode character sets written out in morse-code.
And I'd send a readable copy to my subscribers every month, saying, "this data is what the government is forcing us to store about you this month. It will be kept for x years in case you are a criminal. Here is a list of VPN providers and instructions on how to configure your PC to use them."