BT cools on ad targeting software

Shares in Phorm fell by a quarter on Monday morning after British Telecommunications Group said it had no "immediate plans" to adopt its targeted advertising technology. BT had been expected to be the first UK broadband provider to launch Phorm's service to its customers after completing a trial of the technology - which matches online advertisements to consumers' interests - earlier this year. Phorm's technology has come under fire from privacy campaigners since it first announced agreements with BT, Carphone Warehouse and Virgin Media in February 2008. The European Commission has also voiced its concerns about BT's trials of Phorm's technology in 2006 and 2007 without informing customers. Tim Berners-Lee, the inventor of the world wide web, has also said he opposes so-called behavioral targeting technology at the ISP level, which he branded "snooping". But Ed Richards, chief executive of telecoms watchdog Ofcom, Lord Carter, the communications minister, and the Information Commissioner's Office have backed Phorm's technology, provided it complies with data protection laws.