BT is preparing to test Phorm's advertising targeting technology on 10,000 of its customers this month, to gauge people's reaction to their web browsing being exploited for extra revenue.
The trials will begin mid-March and guinea pigs will be drawn from BT Retail's consumer broadband subscriber base. The firm believes customers will be impressed by what it calls a "safer, more relevant experience".
Phorm will read the websites the test subjects visit and use their contents to serve up targeted advertising when that computer is used to visit other popular sites, including The Guardian and MySpace.
BT sent us this statement about the imminent experiment:
The trial invitation will be presented through a special web page that will appear when those customers start a web browsing session. At this point, those customers invited can choose to switch on BT Webwise, choose not to take part, or to find out more information.
Questions have also been raised over the legality of the system under the Regulation of Investigatory Powers Act (RIPA). Professor Peter Sommer, a leading expert in computer surveillance at the London School of Economics, believes the only way it will be legal is if the ISPs obtain consent from the user it wants to spy on.
As seen in its statement above, BT emphasises that the ad targeting can be switched off easily (it plans to opt-in BT Broadband users when the full system goes live in the fourth quarter of 2008).
However, according to a spokesman for Phorm, the way the opt-out works means the contents of the websites you visit will still be mirrored to its system. Profiler hardware (see network diagrams here) will simply not categorise the pages or attempt to serve up target ads.
Yet the traffic is still being intercepted as far as RIPA is concerned.
BT said: "BT is, of course, aware of the legal requirements regarding interception of communications under RIPA. We consider that these steps [above] will meet the legal requirements of RIPA and also ensure that customers are able to take a fully informed decision as to whether to take the service."
Virgin Media and Carphone Warehouse have also signed up to sell browsing data to Phorm. Virgin Media says it is "still some way" from its own implementation. ®