That has been tried with 'free internet' in the past. Same happened with phone calls and even free PCs where customers had to received xyz minutes of ads every day.
All of them failed...
Besides, the whole concept of Behavorial targetting internet ads is wrong. Whilst it is an ad executives ultimate deal in the real world it doesn't actually work that well and there are far too many negative sides to it.
Behavorial Targetting may work well with store club cards as the data is used for optimum pricing of goods which a store knows a user purchases.
But behavorial targetting will not work for serving ads 'a user may be interested in'.
Ads / Webpages are already targetted
This already happens at the moment. If I google for Paris Hotels google will return pages on paris hotels AND ads for paris hotels.
If I click on one of the pages (such as a holiday review site) the page will be about paris hotels. Again, on that very page I will see ads for paris hotels.
Now where is the advantage for phorm advertisers here if I am already seeing ads which I am already interested in!
On those pages I do not see ads for ford focuses and I do not see ads for apple strudel recipes... so the ads are already targetted.
Phorm Ads will be displayed AFTER a customer may have already purchased
The way phorm works is that it builds up a profile on a user based on the content he / she has read.
If I am looking for a new digital camera for the wife I will read some camera websites, look for some good models (cameras - not those in front of the lens

), possibly post a few questions on message boards, and then check price comparison sites and reviews for a model I would like to buy.
I could do all that this afternoon and then make an online purchase today.
Now the wife comes home from work and uses the PC. She browses unrelated sites but starts seeing ads for Digital Cameras!
My secret present is sussed. She knows I have been looking at digital cameras and can make the assumption that is what I am getting her. So thanks for nothing phorm.
But note too - the ads are being served AFTER I made a purchase. I am not interested in digital camera ads anymore so those which are being served to me are wasted ads. And they will be expensive ads for the retailer too as these are targetted to 'specific customers' of which I am now not.
Ads can be distressing
As already stated behavorial targetting will build up a profile of a user and serve ads based on what they have been reading.
Now imagine a young couple who are trying for a family but have sadly suffered a miscarriage. This can be a distressing time and the internet would be a good resource of information and support. The couple may read mother and baby message boards - self help sections, or articles on how to cope better with the loss etc.
Now the theme of these sites will be babies, toddlers, mums, dads etc.
So what if the behavorial targetting system thinks the users profile is on babies, toddlers, mums, dads? Can you see the extra distress the couple will experience for the next few days as their screens are bombarded with ads for Prams, Nappies and Baby Food?
How Much will BT Make and will Internet be cheaper?
First estimates stated that BT would make around £85 Million a year from running the phorm ad system.
But that was based on an opt-out mechanism where the onus was on the customer to turn the ads off.
Now that they have had to change it to Opt-in, even with their most devious of wording and use of green / red buttons that figure can at best now be a quarter.
So BT could make a net gain of around - being a bit extra generous - £25 million a year.
Work out the maths of how much they could pass that on in savings to customers.
If there are 4 Million BT customers BT could only ever knock off £6 A YEAR to each customer and still have £1 million profit.
So do you think customers will be happy to save 50p a month whilst their privacy is being invaded?
I just hope that those marketeers who dreamt up this nonsense and sold it to the board were the first to be sacked by the board.