Asia To Have 64 million Net Users, $32B E-C Revenue By 2003
By Uday Lal Pai
InternetNews India Correspondent
[30 JULY 1999] Global investment banking and securities firm Goldman Sachs says the number of Internet users in Asia will grow at a compound annual rate of 40 per cent in the next five years to reach 64 million by 2003. This is twice the growth rate expected in the US during the same period.
The 'Goldman Sachs Asia Web' reports further says Internet business will generate about $32 billion in e-commerce sales in Asia by 2003. This represents a whopping 145 per cent CAGR growth. It expects Internet advertising into a $1.5 billion industry by 2001.
At the end of 1998, there were 15 million Internet users in Asia and the e-commerce market was to the tune of $ 700 million. By the year 2003, China, South Korea, India and Australia will represent 70 per cent of all Asia-pacific Internet users, the report stated.
Internet Service Providers (ISPs) will offer the best revenue generation potential over the next 12 months, says the Investment Research Report.And advertising and e-commerce will become the most significant revenue drivers for the Internet in Asia over the medium to longer term.
The Goldman Sachs report analyses the three main ways of generating revenue via Internet - connectivity, advertising and e-commerce. It provides an overview of Internet growth and profiles few Internet-related companies in Asia.
Successful initial public offers (IPOs) will be made by Asian Internet companies with qualified management teams, focused and sustainable business models and backed by strategic investors and/or credible venture capitalists.
The on-line advertising market will go through a rapid growth phase since it is a tried, tested and effective advertising medium in the US. The likely dominant markets will be China, Australia, South Korea and Taiwan.
Television technology may well become the Internet access device of choice in Asia. There are 110 million cable TV subscribers in Asia and places like Singapore and Hong Kong are increasingly focusing on cable networks to provide Net services.
Goldman Sachs study forecasts nine million Internet users in India by 2003. This would imply a 76 per cent compounded annualized growth, the fastest in Asia. The company plans to invest $1 billion in Indian Internet and ISPs.
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