No it hasn't. Here is an article that tends to make me positive on Europes manufacturer's.
Wired world edges nearer at Germany's CeBIT fair
Reuters Story - March 20, 1998 18:29
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By William Boston HANOVER, March 20 (Reuters) - If the world's leading technology companies attending Germany's CeBIT trade fair are right, it won't be long before the vision of a wired economy is a daily reality. In Europe, where high-tech firms have long been frustrated by slow growth and trailing the United States, executives see signs of a coming boom that could help close the gap. During the first days of the fair that runs to March 25, one trend became clear: companies are increasingly turning to the Internet to do business and liberalization of European telecoms is creating a competitive force driving down prices and forcing carriers to provide fast, innovative networks. An International Data Corp. survey, presented at a news conference by U.S. chip maker Intel Corp. , found that 18 percent of companies in eight major west European nations were trying to sell products over the Internet last year and 39 percent planned to get into cyberspace this year. The volume of goods and services purchased online in Europe would surge to $26 billion in 2001 from $3 billion this year. U.S. e-commerce would total $22 billion this year and top $155 billion in 2001. Worldwide, the total would hit $28 billion this year and $223 billion in 2001. "A year ago, we were describing a technology deficit. Europe was well behind North America," said Intel Europe chief Rob Eckelmann. "That is rapidly changing, the gap is closing." SMALL FIRMS RUSH ONLINE, PC MAKERS FOLLOW One example is Schuhhaus Eduard Meier, a German shoe retailer that lets customers view video clips of how it makes shoes by hand and see available models in 3-D images that can be turned and seen from all angles. Another is Rombach und Haas, a German maker of cuckoo clocks, who turned to the Internet to boost sales. Shoppers around the world can use its website to view its clocks from all angles and hear their distinctive chimes before pointing and clicking their way to an online order. Like Intel, Compaq Computer Corp . used CeBIT as a venue to outline its strategy to tap small and medium-sized businesses. It says this segment of the PC market is growing by 18 percent annually and will represent more than half of the total PC market by 2000. Intel, maker of the engines driving the technology railway, displayed dizzying gains in computing power that also would open up the market for home and small-office computers priced under $1,000. Intel demonstrated a PC with a Pentium II running at 700 megaherz -- more than twice the rate of today's speed king, a 333-megaherz model. Such leaps in processing power would help to spark a boom on the Internet and a rise in the world's PC population to more than one billion in the next few years, from 200 million now. COMPETITION DRIVES DOWN PRICES, FUELS INNOVATION The cost of going online has been a huge barrier to the Internet for many Europeans. But fierce competition since markets were opened in January is driving down prices. Germany's new phone companies announced price cuts for long-distance and mobile phone services and seemed surprised by the strong consumer response to new services. "The acceptance on the part of our customers is enormous," said Harald Stober, chief executive officer of Mannesmann Arcor AG & Co. , the main rival of dominant carrier Deutsche Telekom . "We are handling five million call minutes every working day," Stober said. Each of the three leading rivals of carrier Deutsche Telekom unveiled plans to start national Internet access services. Telekom responded this week by slashing charges at its online service T-Online and unveiling plans for a massive launch of Internet telephony services in the autumn, one of the first of the world's major carriers to do so. Competition also has led to improved service and is forcing carriers to meet the surge in demand for network capacity. Deutsche Telekom outlined its strategy for the next generation of high-speed digital access and a large number of manufacturers makers unveiled so-called ADSL equipment. ADSL stands for asymmetric digital subscriber line technology, which is designed for personal computers, notebook computers, set-top boxes, and personal digital assistants. Jozef Cornu, president and chief operating officer of French telecoms equipment maker Alcatel Alsthom , said ADSL would boost Internet access by a factor of 10 to 100 and lead to new services such as video Web sites. CELLULAR PHONE MARKET BOOMS, MOBILE PHONES HOOK UP TO NET Ericsson , the Swedish telecommunications equipment maker, predicted that the number of people subscribing to mobile phone networks worldwide would swell to more than 830 million by 2003 from around 200 million by the end of this year. To take full advantage of the boom, manufacturers have added features such as messaging services in the past and are now hooking mobile phones up to the Internet. French telecommunications equipment maker Alcatel used the fair to launch a mobile phone which can transmit electronic mail, an industry first, and an Internet phone for the home. HIGH-TECH BEAUTY CONTEST AND JOB SEEKER'S BONANZA Would-be German bourse debutantes aiming to list shares on the small-cap Neuer Markt used CeBIT as a high-tech beauty contest to display their charms to a specialized audience. Included in the roll call of firms looking to a bourse listing as a means of raising cash are computer equipment group CE AG, software firm Brokat GmbH and sections of the integrated data processing systems group IDS GmbH. "Certain visitors to the trade fair come to us and the first question they ask is about the Neuer Markt. Then they ask us about the company," Juergen Brintrup, management board chairman of the Bielefeld-based CE Computer Equipment AG. The CeBIT trade fair also became a bonanza for job seekers with computer skills, although it probably won't put much of a dent in the country's 12.6 percent unemployment rate. Scores of companies hope the computer and telecoms fair will lead them to badly needed software developers, systems consultants, support technicians and the like. "There's no question if you have a good education in high tech, you would have no problem getting a job in Germany today," said SAP co-chief executive Hasso Plattner. "But it is very hard for us to find the right people." Recent studies have found that each year, 4,000 to 7,000 graduate in this field -- but industry creates nearly 20,000 new jobs for network administrators, programmers and technicians. |