Monty tells business: Internet or perish
Sooner or later, the majority of companies will have to connect to the network economy or face the threat of putting their existence at risk, and I am measuring my words carefully, says Jean Monty. (Montreal Gazette-Pierre Obendrauf)
ALLAN SWIFT: October 6, 1999
MONTREAL (CP) - Business people face a stark choice between getting on the Internet quickly or perishing, the chief executive of telecommunications giant BCE Inc. said Tuesday. "Sooner or later, the majority of companies will have to connect to the network economy or face the threat of putting their existence at risk, and I'm measuring my words carefully," Jean Monty told a business luncheon.
The head of Canada's biggest telecommunications company said the world is on the brink of a boom in electronic commerce.
Currently the most common use of the Internet is to look at static documents. But Monty cited a study by the University of Texas indicating that worldwide sales through the Internet will reach $300 billion US next year and $1 trillion US in 2002.
"Don't forget, this was a market that didn't exist five years ago."
The same study estimates that every second, seven new clients sign up as Internet customers.
"That's 600,000 potential customers every day," calculated Monty.
To prove his point that small firms as well as large companies must get connected, Monty said the Quebec government will require all of its thousands of suppliers to be connected to its electronic commerce network by 2001.
The government estimates its costs of handling documents will go from $8 per transaction to a few cents.
Contrary to warnings that Canada is lagging in electronic commerce, Monty said that "fortunately, Canada has a long lead in this domain, but the competitive advantage is fragile."
He called on the federal government to put a priority on framework legislation that will boost the sector.
He added that governments could encourage information technology and slow the brain drain by taxing well-off people less.
"Why not encourage and recognize performance, success and excellence, rather than tax heavily those who stand out?"
BCE, through its various subsidiaries, is heavily involved in e-commerce, as well as telephone, data processing, and even television through satellite dishes. It had revenues in 1998 of $27.5 billion. |
