In a statement commenting on the move, which is being dubbed the "Three Strikes" regime, TalkTalk announced that:

"TalkTalk, the home phone and broadband company from The Carphone Warehouse, is refusing to buckle under pressure from the music and film industries to impinge its customers' rights and restrict their freedom of use of the internet."

"TalkTalk is the first ISP to reject the BPI's 'three strikes' scheme which would require it to disconnect customers who had been deemed by the music industry body to have shared content under copyright."

"The BPI proposals are considered by TalkTalk to be unreasonable and unworkable and the company will take every practical and legal step to defend its customers."

Charles Dunstone, CEO of the Carphone Warehouse Group continued:

"Our position is very clear, we are the conduit that gives users access to the Internet, we do not control the Internet nor do we control what our users do on the Internet. I cannot foresee any circumstances in which we would voluntarily disconnect a customer's account on the basis of a third party alleging a wrong doing."

"We believe that a fundamental part of our role as an ISP is to protect the rights of our users to use the Internet as they choose. We will fight any challenge to the sanctity of this relationship with every legal option available to us."

TalkTalk has written to the BPI confirming that it will continue to protect its customers and that "under no circumstances will it voluntarily adopt a scheme that requires it to begin disconnections or sharing customer information with the music industry".

Responding, the BPI's chief executive, Geoff Taylor argued on Friday that:

"In claiming that the music industry is asking it to become the “internet police”, “impinge customers rights” or “restrict freedom to use of the internet”, TalkTalk is either seeking to misrepresent our position, or just doesn’t get it."

"At the heart of this issue is ensuring that creators are fairly rewarded in the digital age, and we passionately believe that working in partnership with ISPs to develop first class, safe, legal, digital music services is the way forward. But such a partnership can’t succeed if an ISP refuses to do anything to address the problem of illegal downloading on its network."

"Contrary to TalkTalk’s claims, passing advice on to their customers is not “unreasonable” or “unworkable”. We are not asking ISP’s to act as the police. We are asking them to act on information we provide to them."

He continued:

"TalkTalk claims it is their role to “protect the rights of their customers to use the internet as they choose”. We strongly disagree on this point when that usage is illegal, and the government’s position in this area is also clear."

"We believe that any socially responsible ISP should, as a core part of its business, put in place steps to help their customers avoid engaging in illegal activity, and deter those who knowingly break the law."

"We firmly believe in an internet where property rights are respected, and creativity is fairly rewarded. This will grow our digital economy, which is in the interest of all of us. TalkTalk should play its part in building this future."