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Your Privacy for Sale: Internet Providers Cash In

Wednesday, May 14th, 2008

UPDATE: Thanks to information obtained by RINF readers, it appears Virgin Media are trying to distance themselves from Phorm.

Virgin Media stated: “Virgin Media has signed a preliminary agreement with Phorm to understand in more detail how this technology works but we have not yet decided if it will be introduced. This information has been clarified to ensure our customers have the full picture.”

However, Phorm had this to say: “We announced exclusive agreements with three major UK ISPs – BT, Talk Talk and Virgin Media, which represent nearly 70 per cent of the UK internet market, to adopt our online advertising platform, the Open Internet Exchange (OIX), and a consumer internet feature, Webwise.

“Implementation is on track and consumer trials are expected to begin in the near term, followed by roll-out across these networks.”

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By Mick Meaney - RINF | A new system that monitors your Internet activity in detail, and is possibly illegal under UK data protection laws, could be in widespread use within months.

Phorm, the company which developed the software, aims to provide detailed targeted-ads by building up surfer profiles from scanning every data packet on TCP Port 80. It is estimated that over ten million customers will be affected.

BT have used this software which scans and intercepts all internet traffic on a customer’s broadband connection, feeding back data to Phorm’s advertising network, the Open Internet Exchange, about which “keywords” were used by the customer.

The revenue gained will be an estimated £85m by 2010 for BT alone as the software sits on the ISP’s servers, which prevents Internet users from switching off the program.

The comparison between traditional Internet advertising services and Phorm has been described as “Checking which phone numbers someone has called and actually listening in to every word of every conversation.”

BT also carried out secret trails without informing their customers. Government experts stated this was a breach of criminal law yet the British Government has refused to investigate the covert wiretapping of thousands during 2006 and 2007.

Pete John, who raised the issue with the authorities, stated: “BT and Phorm seem to be above the law. No one wants responsibility for enforcing complaints against ISPs. ICO say the Home Office. The Police say the Home Office. The Home Office say they have no investigative role.”

Have Your Say: Your Privacy for Sale: Internet Providers Cash In
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9 Responses to “Your Privacy for Sale: Internet Providers Cash In”

Jelv
Posted: May 15th, 2008 at 8:15 am

Phorm and BT were supposed to start running trials several weeks ago. But they have run in to such a wall of opposition and legal problems that they have been postponed. It begins to look a distinct possibility that conforming to the law may undermine the entire business model and so it may never happen.

There is speculation that Virgin Media may be on the verge of announcing that it is pulling out altogether.

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Richard Head
Posted: May 15th, 2008 at 8:36 am

This sytem is not live in the uk…yet.
Many people from MP’s, MEP’s, The Lords and thousands of people on many websites are fighting for your internet privacy on this matter.
Come and join the fight.
Google ‘phorm webwise’ and you’ll find us.

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revrob
Posted: May 15th, 2008 at 9:31 am

I am a BT customer and I can categorically state that BT are NOT yet using this technology. They have carried out secret illegal trials in 2006 and 2007, and they are planning to carry out further trials (much delayed and currently due to start prior to 26th May - about the third or fourth date they have announced) but there is NO evidence that any of the three ISP’s you name are currently using the despicable Webwise software designed by ex-spyware producers Phorm/121Media, the people responsible for PeopleonPage and also for rootkits. There are vigorous campaigns going on to prevent this technology being implemented and while your report is welcome, it needs to be accurate. For further information try here
http://www.inphormationdesk.org/
and then follow the links.

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PA
Posted: May 15th, 2008 at 1:57 pm

BT appear to be the only ISP who are so far down the line with this that they feel compelled to push on regardless. However, even they may have hit a brick wall. Read the post by BTInsider on the BadPhorm forum:

http://www.badphorm.co.uk/e107_plugins/forum/forum_viewtopic.php?5226.0#post_5235

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Mick Meaney
Posted: May 15th, 2008 at 2:16 pm

It has been reported that Phorm IS in use, see:

http://www.theregister.co.uk/2008/02/29/phorm_documents/
http://www.guardian.co.uk/technology/2008/mar/06/internet.privacy
http://bits.blogs.nytimes.com/2008/04/07/phorms-all-seeing-parasite-cookie/
http://www.theregister.co.uk/2008/02/29/phorm_roundup/

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Mark
Posted: May 15th, 2008 at 2:18 pm

I suggest your revenue estimates for BT are now wide of the mark.

This figure was based on ‘implementation by stealth’ with all users included by default. Clearly the covert nature has been blown and the Information Commissioner now insists on an opt-in with informed consent.

BT won’t make a fraction of the figure you publish.

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Mick Meaney
Posted: May 15th, 2008 at 2:24 pm

If they are making it an opt-in, then yes I agree they will not make anywhere near that amount. Afterall who would opt-in for this?

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Sul
Posted: May 15th, 2008 at 2:26 pm

All you people have to do is search for phorm and you’ll find loads of information about it from good sources, the article is correct all you have to do is research it and stop listening to BT.

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peter white
Posted: May 15th, 2008 at 2:32 pm

how many opt-in depends on the spin and lies and how little real detail of just how intrusive the product is, presented for the users to make the “informed choice”

if the full details of what the system can see and use then nobody in there right mind will opt-in

also look at http://blog.iwr.co.uk/2008/05/behaviour-model.html this seems to detail the possible planned mission creap of phorm / webwise from serving adverts to serving / meddling with actual content

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