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BT has abandoned plans to track the browsing habits of its broadband customers in order to provide them with targeted advertising.

The ISP had been one of several to sign up to the controversial Webwise service from Phorm, which has come under criticism from privacy groups since it was first unveiled.

However, it has now been revealed that it will not be joining other broadband suppliers in rolling out the service to its millions of customers, news that is sure to come as a blow to Phorm as it nears launch.

A spokesperson for the broadband provider said: "We continue to believe the interest-based advertising category offers major benefits for consumers and publishers alike.

"However, given our public commitment to developing next-generation broadband and television services in the UK we have decided to weigh up the balance of resources devoted to other opportunities."

Last month, Phorm claimed that delays by UK ISPs to the rollout of its service are costing the company approximately £1 million per month.

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