U.K. Internet surfers will likely soon see the deployment of a controversial behavioral ad-targeting system, while the concept appears to be faltering due to privacy concerns in the U.S.

Online ad company Phorm said Thursday that BT's preparation to deploy its Webwise tracking system has taken longer than expected due to work to ensure the system can handle a large number of users.

Two other U.K. ISPs, Virgin Media and Carphone Warehouse, are also planning trials of Phorm.

Webwise examines the Web sites a person visits and keywords used in searches in order to deliver ads related to those topics. The system has raised concern over how that personal data is handled.

U.K government agencies have said that Phorm doesn't violate data protection regulations as long as ISPs have a user's consent before monitoring Web traffic. The European Commission has also queried the U.K. government for information on Phorm but has yet to take other action.

"We work with the regulatory authorities here very closely, and they have been very supportive of Phorm technology," Phorm spokesman David Sawday said.

Phorm's progress in the U.K. contrasts with the bumpy road encountered by a similar company, NebuAd, which has worked to market its behavioral ad delivery system in the U.S.

The CEO of NebuAd, Robert Dykes, Wednesday resigned and joined Verifone Holdings, an electronic payments hardware and software developer, as senior vice president. He remains listed as the founder and chairman of the company on its Web site.

Dykes testified before a U.S. Senate committee in July, maintaining that NebuAd does not retain information that could later be used to identify individuals and their online activities.

NebuAd had deals with U.S. ISPs to deploy its system, but some of those ISP partners have pulled out. On Wednesday, NebuAd said it has suspended deploying the system pending a Congressional inquiry, according to the Washington Post. NebuAd's London office could not immediately answer questions.

Phorm has been in discussions with U.S. ISPs but won't reveal which ones. "The main focus at the moment is the U.K. and getting to the trial and deployment stage with the three ISP partners here," said Justin Griffiths, who works for a public relations agency employed by Phorm.

The IDG News Service is a Network World affiliate.