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British Telecom Drops Phorm
Consumer privacy backlash proved too much for project...

Controversial adversnooping company Phorm used to be named 121Media and has a history with rootkits and spyware. So it wasn't surprising when privacy advocates began opposing the the company's efforts to push behavioral advertising systems in the UK dressed up as anti-phishing solutions. Criticism heated up further when the company conducted several rounds of secret trials of the technology with British incumbent British Telecom -- without informing consumers their browsing was being closely tracked.

For a while, both Phorm and British Telecom figured they could handle the PR crisis. Phorm, for its part, did so by freaking out and accusing all critics of being part of a grand conspiracy. British Telecom's solution for the criticism was to simply ban users from talking about the system in the British Telecom forums.

As you might imagine, neither of these efforts worked, and British Telecom has now scrapped the project completely. That could be a real problem for Phorm, whose balance sheets (pdf) indicate the company made no actual revenue in 2008 outside of interest.

British Telecom was supposed to be Phorm's primary cash cow client, with the deal helping Phorm expand into other markets. While the companies involved have yet to admit as much, Phorm was rumored to be in talks with both AT&T and Qwest for expansion here in the States. However, that's clearly on hold. Phorm, for its part, claims they're still in talks with fifteen different carriers nationally.

British Telecom tells The Guardian that they scrapped the project because they wanted to conserve cash for their next-generation upgrades. Given those next-generation upgrades are largely fiber to the press release that won't be that expensive, it's pretty clear that British Telecom simply didn't like being under fire.
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baineschile
2600 ways to live
Premium Member
join:2008-05-10
Sterling Heights, MI

baineschile

Premium Member

Its agreed

We all hate Phorm; so much, that we dont even comment on it....

PhormPorn
@verizon.net

PhormPorn

Anon

Re: Its agreed

said by baineschile:

We all hate Phorm; so much, that we dont even comment on it....
Now if it said.

British Telecom Drops Porn

Then there'd be some comments.

Its a Secret
Please speak into the microphone
Premium Member
join:2008-02-23
Da wet coast

Its a Secret to baineschile

Premium Member

to baineschile
I'm heart-broken...

FastiBook
join:2003-01-08
Newtown, PA

FastiBook

Member

Bout time.

If there's one thing UK can do, is eventually find common sense & follow it.

- A

DennisCB
@btcentralplus.com

DennisCB

Anon

Public support

It failed not because of what it is but because of Phorm's alarming activities of the past. The illegal trials and highly visible home office cover-up of those trials, mixed with a public derailing of the regulator was never going to win public support. I pray that the European commissioner's investigation into the government's blatant behind the scene criminal interference is both far reaching and robust.
DennisCB

DennisCB

Anon

Criminal

Going into partnership with people who made their money infecting computers could only lead wholesale customer rebellion. Those who failed to see it coming should be fired. Supplying customer information to these people was repugnant to say the least. Illegal trials, illegal government participation, and the illegal and very public derailing of a regulators ruling and a police enquiry was never going to win the hearts and souls of any idiots customer base. I hope the European Commissioner's enquiry into the criminals involved is both far reaching and very, very robust.