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Orange Backs Out of Phorm Plan
UK mobile and broadband provider Orange has pulled out of plans to use behavioural targeting firm Phorm's controversial targeted ad technology, because of concerns about customer privacy.
Phorm's technology tracks web surfing and targets ads based on it, which it then shows to broadband customers who have opted to receive it.
Earlier in the year, UK 'phone giant BT faced a possible lawsuit after admitting using business customers' data without their consent, in a trial of Phorm's 'Webwise' software. This triggered protests from privacy campaigners and resulted in questions from the European Commission.
However, in September the UK Department for Business, Enterprise & Regulatory Reform (BERR) stated that the system does not break EU data protection laws so long as users are given an easy option to opt-out.
Paul-François Fournier, SVP of Orange's Online Advertising division, told the Financial Times that while there is huge potential for telecoms firms to use customer data to target advertising, the Phorm model 'lacked clarity' on customers' privacy.
'We have decided not to be in Phorm because of that,' Fournier added. 'The way it was proposed, the privacy issue was too strong.'
Last month, BT began trialing Webwise with around 10,000 volunteers. Virgin Media and Carphone Warehouse are also assessing the system.
Web site: www.phorm.com .
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