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To: AmericanDane who wrote (35540)	1/20/1999 3:25:00 PM
From: Rob S.	Read Replies (1) \| Respond to of 164684

Here's an interesting article: fnews.yahoo.com - but they didn't mention another factor that will lead to a cool-down in the Internut sector: The Internet has grown rapidly. Much of that growth has been by adoption of the existing base of PC users. By the 3rd quarter of '99 about 60% of PC users are expected to be on the Internet. That is a dramatic increases from around 7% just a couple of years ago. Forecasts project that the huge bubble of early acceptance has already begun to peak - while the rate of acceptance accelerated last year it has already begun to diminish and will more precipitously diminish by the end of the year. Sure the Internet will continue to grow, but the rate of growth will depend more and moe on the growth in new PC owners. I don't know if anyone has analyzed this growth factor sufficiently to determine what the absorption rate will be at fixed points in time over the next few years, but it is expected that not every computer is destined to become connected to the Internet. The early gains are about over as the existing market get closer to absorption. Growth will continue to be much greater than the general economy because of new PC users. At some point the growth of other devices, such as Internet equipped TVs or set-top boxes will spur use but the expectation for that increase is quite high.