How is this going to work with the likes of Apple who say no to their law enforcement agencies who ask them to break/weaken their encryption?
How will the UK government get people like apple/whatsapp to weaken their software or provide backdoors. I realise they could say you can't sell your products in the UK if you don't do this... but how can you stop someone who already has an iPhone or whatapp installed? I don't think these companies are going to bend over backwards just because the UK government says they have to weaken their stuff... I can't see it happening.
I can see shitty ISPs not having any trouble with it and handing over your data willy nilly... but how is say Virgin Media going to hand over unencrypted whatsapp traffic?