To: Jason Yantz who wrote (30824 ) 8/12/1998 6:44:00 AM From: Pakman2000 Respond to of 97611
Dataquest Sees Huge European PC, Net Growth (08/11/98; 5:01 p.m. ET) By Staff, Semiconductor Business News EGHAM, England -- Although Europe has been slow to embrace the Internet, that is beginning to change, according to Dataquest, a research company in San Jose, Calif. As a result, the potential for sales of PCs on the continent is considerable. The market researcher sees the European Internet market growing from 13.3 million computers connected to the Internet last year to 69 million computers in 2002. It said it projects the market will grow 60 percent in 1998, with 21.2 million Internet seats. The consumer segment led the market, with more than 7 million computers connected to the Internet in 1997, followed by the business sector with 6.2 million. This trend will change by the year 2000, however, when the business market is estimated to have 22.8 million Internet seats, passing the consumer market's 21.8 million Internet seats. "As telecommunications deregulation begins to show its impact in Europe, prices for higher-speed access such as leased lines will decrease, and some medium-sized companies that today can't afford leased-line access will switch over," said Petra Gartzen, senior industry analyst for Dataquest's Internet and Enterprise Strategies Europe program here in Britain. "Once a company has leased-line access, a much larger number of employees can be given Internet access." Germany led all countries in the region with 4.7 million Internet seats in 1997, followed by the United Kingdom and France with 2 million and 1 million Internet seats, respectively. These three countries will continue to account for more than half of all Internet seats in Europe through 2002. But France is projected to post the strongest growth among the top three countries, reaching 10.1 million Internet seats by 2002. "France was slow to start in Internet adoption because France Telecom was slow to enter the Internet market and because Minitel, France Telecom's proprietary online service, was so popular," said Gartzen. "France Telecom is now a driving force in the French Internet market, and recent growth figures show a big increase in interest in the Internet in both the business and consumer sectors."