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By: MarkJ - 22 April, 2009 (12:17 PM)
The Phorm system, which controversially works with UK broadband ISPs (e.g. BT WebWise) to monitor what websites you visit for use in targeted advertising campaigns, has denied a report that both BT and Virgin Media were seeking to distance themselves from the system.

Phorms Email Statement: “There is no substance to today’s New Media Age story. Over the last year there have been continuous attempts to create the illusion that Phorm’s ISP partners are parting ways with the company. This is yet another example of such a story, which has no basis in fact.

The related story on New Media Age (NMA) noted that Virgin Media, which had previously viewed Phorm's technology with interest, was now pursuing alternatives; specifically one from Audience Science. The article included mention of a BT "source", which claims that the ISP could also move away from using Phorm.

The BT source added: “Amazon is one of the top ten sites in the UK. If 50-60% of the top 20 sites decide to abandon Phorm, I think everyone can guess what will happen.

Typically several major online websites, including Amazon, Wikipedia and LiveJournal among others, recently opted-out of having their sites users monitored and profiled by Phorm's system. The EU followed soon after by expanding its investigation of Deep Packet Technology (DPI) to cover Phorm as well.

However Virgin Media has since informed another site, The Register , that there is no truth to NMA's report and that they have taken discussions concerning different parts of the business out of context. Meanwhile BT, which has to date been one of Phorm's strongest supporters, cryptically chose not to comment.
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