I found this article quite informative
http://www.economist.com/printeditio...ry_id=10789393
Though the article talks about what is happening in the USA it does suggest that similar thing will be used in Europe. The way I see it, the only reason someone like Virgin Media have been talking to Phorm is due the requirement to tap all web use. With the deal the ISP doesn't have to pay to host the equipment and yet will be able comply with the law and monitor all use. Revenue raised from the advertising would be a 'bonus'
It would also seem to imply that ALL ISPs would be required to have monitors so regardless of where people defect to, they are likely to be monitored.
One thought springs to mind however. The article refers to Skype and how packets are encrypted. Would it be practical to use Skype as pseudo dial up, rather than send voice over it data. I don't know what performance would be like, but just a thought
