Customer issues over privacy force BT to drop Phorm targeted ads

Following constant attacks by campaigners for privacy as being a tool for online snooping, BT have finally decided to drop the highly controversial system developed by Phorm, an internet technology company, which tracks the browsing habits of users online.

The Webwise system, which targets users with advertising related to the websites they are tracked visiting, used BT Broadband heavily to develop its system and in 2006 and 2007 even used the operator to carry out secret testing of its new technology.

These secret tests are currently at the centre of an investigation into the British Governments’ failure to protect the online privacy of its citizens by the European Commission.

Trials of Phorm’s technology were carried out properly last year by BT and the test results have been eagerly awaited by both the two other prospective partners TalkTalk and Virgin Media and the Phorm management team, which includes its chairman and ex-chancellor Norman Lamont.

Phorm, however, has now been hit hard by the recent announcement by BT to not continue with its rollout of Webwise to 4.8 millions of its users. The investment by BT of £1.5 billion to provide 10 million homes with high-speed broadband services by 2012 was the reason given by the operator for its decision, although it did receive a number of complaints regarding the use of Phorm’s system and has become increasingly worried about its customers anger at being pushed into using systems that monitor their online browsing activities.

A BT spokesman said “We continue to believe the interest-based advertising category offers major benefits for consumers and publishers alike. However, given our public commitment to developing next-generation broadband and television services in the UK we have decided to weigh up the balance of resources devoted to other opportunities. Given these commitments, we don’t have immediate plans to deploy Webwise today. However, the interest-based advertising market is extremely dynamic and we intend to monitor Phorm’s progress …before finalising our plans.”

Source – www.guardian.co.uk