TalkTalk drop Phorm making its UK launch unlikely

The chances of a UK launch of targeted advertising company, Phorm seem increasingly unlikely as TalkTalk broadband service from Carphone Warehouse drop the company’s Webwise system.

The recent confirmation that it had no “imminent plans” to launch Phorm’s Webwise service to its broadband customers made BT the first company to drop out.

Based on users’ internet browsing habits the Webwise system matches advertising to the interests of broadband users and it also provides recommendations on websites and security.

Although no trials of Phorms technology have been carried out yet Virgin Media are talking to rival providers and have confirmed that it is still interested in the provision of the service.

In a recent statement TalkTalk advised “It’s not the right time for us from a commercial or operational viewpoint to work with Phorm.”

The need to focus on online TV services and high-speed broadband services were the reasons that were given by BT for delaying the rollout of the Phorm Webwise system.

Following the announcement the share price for Phorm fell to 201.87, which was a drop of 16.75 percent, and means that since the start of the week its share price has fallen by around 50 percent.

BT had been the nearest provider to the launch following a loosely defined agreement with Phorm announced back in February 2008 by Virgin, BT and Carphone Warehouse. The fact that all the main UK service providers had planned to use the Phorm service meant that the commercial risk to any individual service provider was greatly reduced.

An industry insider that was familiar with the plans of the broadband providers said “The seeds were sown from day one when three of Britain’s biggest ISPs were on the starting grid and only one started running.”

Source – www.ft.com