While Internet providers in the United States have backed off, for now, from the idea they may be able to make money by selling information on where their customers surf on the Internet, British Telecom is still moving forward with the idea.

It announced Monday that it would begin testing an ad monitoring system developed by Phorm, which also has deals to work with two other big Internet providers in Britain. Phorm is going to monitor every most of the Web sites that customers visit and every most of the search terms they enter. It will test the system with 10,000 customers. It said it expects to roll out the system to all customers after studying the results, but it didn’t offer any schedule.

To read this New York Times article in full, see bits.blogs.nytimes.com/2008/09/29/british-telecom-wants-to-watch.