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See coverage by Asiajin, here.
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The business case was to share advertising revenues between the ISP and the these companies. The ISP provides the facilities and subscribers base and Nebuad/Phorm the networking equipment that track the subscriber's activity (usually "anonymously" - without keeping record of the subscribers activity) and relations with advertisers.
However, the business case could be only justified with large volumes - so if the subscribers are required to opt-in (register) for the service - there just not going to be enough traffic, clicks and therefore revenues. Opt-out could be a better way, possibly leaving enough subscribers exposed to the process.
According to Asiajin, the Japanese report - "concludes that such technology cannot be used without constituting a breach of private communications if it does not first receive approval from the user (p. 58). However, elsewhere in the report it is stated that an opt-out mechanism must be in place (p. 59), suggesting that the system need not be opt-in." (the report is here, in Japanese).
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