According to a report in the Sunday Times, UK Government Communications Headquarters (GCHQ) is in the midst of a "Mastering the Internet (MTI)" program that would cost £1 billion, and involve thousands of black boxes secretly placed in the communications infrastructure to track all Internet use and online phone calls.
That goes against a recent announcement by the Home Secretary saying there would be no national database of Internet usage, and that ISPs would have to act as monitors.
It certainly prompted GCHQ into a response. Yesterday it admitted that it was developing tracking technology, but asserted that it "only acts when it is necessary" and "does not spy at will."

