International Briefs

January 5


1998 Internet Predictions Vary

ActivMedia estimates that Web generated revenues will be worth $24 billion
this year; Forrester Research projects a lower estimate of $2 billion.


ActivMedia data shows that the U.S. accounts for about 86 percent of
revenues, Canada seven percent, Europe five percent and Asia 1.5 percent.


“We believe that the online retail market will grow from $2 billion in the
value of goods sold during 1997, to more than $17 billion in 2001,” said
Forrester Research.


“As in the PC era, we believe the commercialization of the Internet across
industries will represent net wealth creation of hundreds
of billions of dollars globally, across several industries, over the next
five to 10 years,” Goldman Sach analysts predicted in a recent report.


(Reuters News Agency; January 2, December 31, 1997)


IDC’s Internet Predictions For 1998

Market research group International Data Corporation predicts that by the
end of 1998, 22.8 million U.S. households will be wired for the Net.


Sub-$1,000 PCs with fast modems will ensure that the Web world will still
be PC-centered. But $500 WebTV set-top boxes will gain ground.


According to IDC Vice-President Anthony Picardi, the Internet has brought
about a change in mindset.


“Managers can think through the whole process of getting a widget from
concept to product, up to and including customer feedback. They can
conceive of the supply chain, think out of the box, and get with their
customers and partners,” he said.


(Business Week; January 5, 1997)


ISP Market Continues To Heat Up

1997 was a good year for ISPs. According to a study by Maloff Group
International, the ISP market has grown to nearly $8.4 billion, up from
only $1.85 billion in April 1996.


The top business-oriented providers are
IBM, WorldCom’s UUnet, AT&T’s Worldnet, and PSINet. IBM has climbed to the
top of the business provider market by providing value-added Web hosting
and content development services.


At the top of the consumer ISP food chain
is America OnLine, which recently crossed the 10 million-subscriber mark in
the U.S. in November, and the 1 million overseas subscribers mark.


(Wired News Service; January 1, 1997)


U.S. Internet Stores Find Growing Sales
Overseas


In increasing numbers, people who live overseas are turning to U.S.
Internet stores for their shopping needs.


Japan, South Korea, Germany and
Britain are all hot markets for overseas online sales, U.S.-based online
merchants say.


Booksellers Amazon.com and Barnes&Noble.com report that customers beyond
the U.S. border account for about 25 per cent of their total sales. CDs are
also popular products among overseas Net shoppers.


(Hong Kong Standard; January 1, 1997)


British Insurance Companies Venture Onto The
Net


More than 100 insurers in Britain, selling everything from car cover to
healthcare, have set up shop online.


But few allow insurance to be taken out electronically using a credit
card–most simply offer quotes, with applications and payment by telephone.
Eagle Star offers a 15 per cent discount on motor insurance through its
site, and takes credit card payment. Halifax offers travel insurance
online, also with credit card payments.


(Financial Times, Britain; December 31, 1997)


Thai Chapter Of ISOC Criticised For Proposing Internet
Censorship


The Thailand Chapter of the
Internet Society
(ISOC), formed in 1996, is being criticised for
proposing Internet censorship legislation which seeks to ban information
concerning the King and the Royal Family, political issues which impact the
nation’s security, and pornography.


Critics include Internet Society Vice President Vinton Cerf, who said the
proposed Internet Promotion Law “does not seem compatible with Internet
Society principles.”


These principles include open, unencumbered, beneficial use of the Internet
with self-regulated content providers, Cerf said.


(Bangkok Post; December 31, 1997)


News Publishers Lead Move To Charge For Web
Content


Online news publishers are leading the move to convert readers into paying
subscribers.


They include Business Week, The Economist, The New
York Times
, The Los Angeles Times, The Wall Street
Journal
, and San Jose Mercury News. Microsoft’s Slate also
plans to charge subscription fees.


While having a Web site has become almost essential for publishers, most
continue to lose money despite online advertising. Some are therefore
charging for access to current content; others charge for access to
archived material.


(Financial Times, Britain; December 29, 1997)


Three Tiers Of Eligibility Norms Proposed For Indian
ISPs


A task force on prospective ISP eligibility criteria in India, chaired by
former Telecom Commission member D.N. Nanda, has recommended a three-tier
eligibility structure for ISPs.


The proposed structure would feature separate sets of criteria for
applicants seeking international connectivity, national connectivity and
single point of presence.


The task force, constituted by the Federation of
Indian Chambers of Commerce & Industry (FICCI), favours selection on the
basis of technical and financial capability for national and regional
operators, and free entry for single POP operations.


Among the benchmarks,
the report has recommended a minimum annual turnover of Rs. 5 crore for
computer companies and two-years experience for foreign companies in the
operation of Internet services.


(Business Standard, India; December 27, 1997)


Jordanian ISP Offers Internet Access Service Via
Satellite


Jordanian ISP Global One is offering Jordanian subscribers a one way
Internet satellite down-link via Zaknet.


Global One, launched in March 1996, has a subscriber base of more than
5,000 users. It was formed via an alliance between France Telecom, Deutch
Telekom and Sprint.


(The Star, Jordan; December 26, 1997)


Stakes Increase For Winning Online Market Share
Through Advertising


The strategy for Web sites like Yahoo and Lycos has been to spend money to
develop Web sites, build recognition among consumers, and battle for the
dominant market share in the hopes of attracting users, advertisers and the
revenues they generate.


A year ago, an Internet company could capture 40
percent of its market just by advertising in New York and San Francisco.
Now capturing that same market share requires advertising in six cities,
according to Joe Kraus, senior vice president and co-founder of Excite.


“I am a big believer in spending $1 million today, rather than $10 million
five years from now,” Kraus said.


(Dow Jones News Service; December 24, 1997)


Internet Gambling Booming In The
Caribbean


The Caribbean is now witnessing a booming new industry: Internet casino
gambling.


To the chagrin of U.S. legislators, this could become a billion-dollar
industry by 2000.


“The Caribbean is a hotbed for gambling sites,” closely followed by Central
America, said Sue Schneider, editor of the gamblers’ magazine Rolling
Good Times Online
.


The new Grand Dominican Resort & Casino reports thousands of hits a day
from Internet betters within the first three months of operation.


The Internet’s global scope complicates enforcement, however. Countries
like Australia have reportedly considered ways to regulate and tax online
gambling.


(Associated Press; December 16, 1997)


U.S. Department of Transportation Unveils Online
Docket Management


The U.S. Department of Transportation’s
new Web site will offer information and searches on rule making, legal
issues, and other regulatory matter.


The system is the first of its kind in the federal government, according to
Vice President Al Gore.


“This is an excellent example of what President Clinton means by
reinventing government,” Gore said. “By making regulatory information
available on the information superhighway, we are taking government
directly to the people. Citizens can be better informed and play a better
role in developing the federal rules that govern transportation activities.”


(Knight-Ridder/Tribune Business News; December 12, 1997)

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