British ISP Virgin Media may be pulling out of trials with behavioral targeting firm Phorm, which will come as a serious blow to Phorm's controversial consumer tracking technology.
England's number two Internet Service Provider announced plans to work with Phorm in March of 2007. But on Monday, Virgin CEO Neil Berkett told investors that the company was unlikely to roll out ad technology from firms such as Phorm, according to Clickz.
A Virgin spokesperson says that Virgin is still considering a partnership with Phorm, but "due to the complexities of the proposition we do not have any timescales on when, or if, we will progress to trial or full launch."
British Telecom, Britain's top ISP, is currently in consumer trials with Phorm's technology and Phorm announced in September that Virgin and Talk Talk would "commence consumer trials in due course." BT has not yet completed the trial that began in September and a spokesperson says there is no fixed date in mind that it will be concluded.
In the meantime, objections to Phorm's technologies continue to mount.
Phorm tracks consumer behavior online in order to serve targeting advertising to web users.
The company got into trouble in 2006 when it conducted trials with BT of its behavioral targeting technology without user consent, and privacy advocates continue to object to ISPs mining consumer data for advertising due to their extensive access to consumer data.
In the U.S., targeting firm NebuAds has suspended its work with ISPs while Congress investigates its practices, but Phorm has proceeded with trials of its software in Britain. In September, the U.K.'s Department for Business, Enterprise and Regulatory Reform (BERR), approved Phorm's technology, with reservations.
But if BT decides not to roll out a large scale contract with Phorm, the company's outlook will be bleak. In addition to Virgin's trepidation, ISP Orange announced in October that privacy concerns would keep them them from working with Phorm.
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