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Originally Posted by Peter N
If BT et al use any income from Phorm to drop their montly fees then the other ISPs will either sign-up or go bust.
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The potential income from phorming for BT was estimated to be around £85 million per year, on the original opt-out model. That is only about £20 per opted-in customer per year, less than £2 per month.
Nebuad has real data to assertain its true income and apparently produces more detailed profiling than Phorm currently proposes, including higher value data such as zip codes and IP addresses, but ISPs expect to earn as little as $2.50 per opted-in customer per month (
http://en.wikipedia.org/wiki/NebuAd ).
I dare say over the longer term if the furor dies down the income could be increased by expanding the information they collect and offering value added services - quite possibly a phorm search engine (using peoples browsing to index pages instead of bots), maybe even the shopping cart "hijack" service I suggested in an earlier post.
Certainly a lot of people always go for the cheapest deal no matter what and would go with a phorming ISP for a £2 saving per month, but an awful lot already pay a premium ISP for a better quality service. Personally I think my privacy is worth far more than £2 and these ISPs propose to sell-out their customers trust far too cheaply.
If Phorm think the revenue they generate is enough to convince the majority of ISP customers, then why haven't they rolled out webwise as a proxy service without the participation of ISPs - cut out the ISPs and pay the end-users direct?
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Webwise will be advertised in such a way that the average person has no idea of the privacy inmplications and they'll be lead to believe that all internet use is risky and that this is no big deal.
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This is something we will need to challenge, by spreading the word and hopefully the recently introduced Unfair Trading regulations can be used against ISPs if they try to mislead
http://www.opsi.gov.uk/si/si2008/dra...110811574_en_1