His wife is not the only one doing a law degree....
He is correct in saying that there is no precedent (which btw he can't spell) on the subject.
His wife may be thinking that stealing bandwidth is not theft under the theft act 1968, but would probably be interpreted as obtaining services by deception under the 1978 Theft act (section 16).
As for the white paper mentioned, i have checked and can find no evidence of such a paper... i am prepared to be proved wrong on this one though!
MB