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Aren't telecommunications companies legally required to bypass encryption?

No. It would cost too much. Some countries handle this by outlawing encryption.
Telecommunications companies in the United States are explicitly exempted when the customer encrypts. From the U.S. CALEA law:
Section 103(b)(3) ENCRYPTION- A telecommunications carrier shall not be responsible for decrypting, or ensuring the government's ability to decrypt, any communication encrypted by a subscriber or customer, unless the encryption was provided by the carrier and the carrier possesses the information necessary to decrypt the communication.

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