An ISP's default answer to government should be "No".
Also, when the government has a free hand to create legislation that allows them to do such a thing, it's hard not to comply without loosing one's business or life. Vodafone's been quoted as saying something to that affect:
"Under Egyptian legislation the authorities have the right to issue such an order and we are obliged to comply with it ... "
From: http://www.ft.com/cms/s/0/08dbe398-2abb-11e0-a2f3-00144feab4...