I have elsewhere discussed the incentives for ISPs and spooks to work together on DPI and other surveillance techniques, measured in cash terms against ISPs' core business of providing connectivity. Now Virgin has entered a trial with a subsidiary of BAE, the UK's largest arms dealer and most sophisticated large-scale technology exporter, to instigate DPI inspection of aggregated subscriber traffic - identifying pirated material according to copyright industry claims, using both deep and shallow packet inspection.
It will be interesting to see whether Virgin subscribers increasingly resort to encryption in response.
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