A UK court has upheld the Government’s right to ban commercial marketing of a money-saving telephone service on security grounds because it could provide anonymity for callers. The service uses “GSM gateways” that can reduce call charges by rerouting calls through mobile phone SIM cards – but it also allows users to make anonymous calls, potentially avoiding government surveillance.
The Court of Appeal refused to award companies damages for a government licensing system that in effect bans the GSM gateway services they offered and largely halted their business.
Lord Justice Richards said: “Since the time when the existence of GSM gateways first came to light in 2002, the Home Office has maintained that the exemption of commercial operators of such gateways from the licensing regime would be seriously detrimental to public security.” He explained the system thus:
“When a call is routed through a GSM gateway, the caller line identification of the party originating the call is replaced by that of the SIM card in the GSM gateway, so that the identity of the originating caller is masked. This is said to give rise to serious public security concerns for law enforcement agencies in relation to the investigation and prevention of terrorism and serious crime.” (Recall Support Services Limited et al v Secretary of State for Culture, Media and Sport  EWCA Civ 1370 para 9.)
Recall Support Services and five other firms sought to challenge the ban under a European Union law to encourage the telephony sector to develop. They had originally claimed £415m in damages for alleged losses as a result of the UK Government’s maintenance of a restriction on the commercial use of GSM gateways despite a European Commission directive intended to free up telephony services. Read the rest of this entry