From: Nua Internet Surveys [mailto:[log in to unmask]]
Sent: Monday, December 11, 2000 6:46 PM
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Subject: Nua Internet Surveys: December 11, 2000
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NUA INTERNET SURVEYS - The Number One Resource for Statistics
Free Weekly Email For Latest Information & Trends on the Internet.
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December 11, 2000 Published By: Nua Limited Volume 5 No. 48
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Dear readers,
We are pleased to announce that, as part of the ongoing development of
Nua Internet Surveys, our daily news coverage is expanding from three
to five articles every day from Monday, December 11, 2000.
The format of our newsletter will also change slightly next week to make
it easier for you to scan the week's articles. Instead of sending you
the full text of every article, we will provide you with a summary and
a link to the full version of each article.
We hope that you will continue to find Nua Internet Surveys interesting
and informative. As ever, we welcome your feedback to <mailto:
[log in to unmask]>.
Best regards,
Kathy Foley,
Editor, Nua Internet Surveys.
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CONTENTS
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ACCESS DEVICES
:Internet, mobile costs low in UK
BUSINESS USE
:Return of the middleman
:Small firms use Web for promotion, not ecommerce
:Mid-sized companies turn to e-procurement
ECOMMERCE
:US consumers to buy more gifts online
:Online 'window shoppers' to boost offline sales
:30 percent of UK dotcoms in profit
FINANCIAL SERVICES
:Swiss online banks are European leaders
GENERAL DEMOGRAPHICS
:Scandinavia: a recipe for web success
:Constant growth for French Net population
GOV/LEG
:EU countries pass joint ecommerce law
:Japan passes Internet bill
:Most nations lack cyber crime laws
IT/COMPUTER INDUSTRY
:IT staff work longer, produce less
PUBLISHING/MEDIA
:US public turns to the Web for election crisis
news
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EDITORIAL
'The Neverending Fad'
by Kathy Foley
<http://www.nua.ie/surveys/analysis/weekly_editorial/archives/issue1no156.ht
ml>
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Internet users would have been forgiven for doing a double take at the
'Internet is just a passing fad' headlines that dominated news sites
last week. Had they accidentally clicked on The Onion or Satire Wire?
Surely, these weren't serious news articles?
They were serious, and they referred to a new report from the Virtual
Society project, which is backed by the British Economic and Social
Research Council, undertaken by 76 researchers from 25 universities
in Europe and the US. Most articles on the report picked up on certain
'facts' contained in the report: namely, that 28 million Americans had
stopped using the Internet and that teenagers were turned off the
Internet. "They came, they surfed, they went back to the beach," as
the report said.
While the news delighted the 'Internet, schminternet--I knew it would
never catch on' brigade, most people greeted the report with derision.
Well, can you see yourself at a party in 2010 saying to some pale,
bespectacled, nerdy type, "Oh God, you still use the Internet. That's
so 2000."
Of course, the Virtual Society report didn't say the Internet was a
passing fad. What it said was: "The current rate of straightforward
rapid expansion may not continue--in some respects the Net may have
been a fad."
Well, any dolt could tell you that the current rate of straightforward
rapid expansion won't continue. There are only so many people in the
world with the means, the time, and the interest to use the Internet,
so the growth has to stop sometime. Markets reach near-saturation point.
That does not mean, however, that the Internet may be a fad.
For the full story, go to:
http://www.nua.ie/surveys/analysis/weekly_editorial/archives/issue1no156.htm
l
For archives of editorials, go to:
http://www.nua.ie/surveys/analysis/weekly_editorial/archives/index.html
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DIGESTS START HERE
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ACCESS DEVICES
Archives: <http://www.nua.ie/surveys/index.cgi?f=FS&cat_id=26>
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Oftel: Internet, mobile costs low in UK
The UK has some of the lowest prices for Internet access and mobile
phone use, according to telecommunications regulator Oftel.
In a survey of Internet costs in the UK, Germany, France, Sweden, and
the US states of Ohio and California, UK households paid the lowest
amount for metered Internet access. Only the state of California had
cheaper rates for unmetered home access.
The survey found that the UK provides the cheapest unmetered access
rates for businesses. However, British businesses paid the second-
highest metered Internet access rates of the countries surveyed.
While Oftel highlighted the low cost of flat-rate web access, it said
improvements could be made in terms of metered access for companies.
In its research on mobile costs, which also included Italy, Oftel
found that Germany was the only country with significantly lower fees
than the UK.
<http://www.oftel.gov.uk/releases/2000/pr97_00.htm>
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BUSINESS USE
Archives: <http://www.nua.ie/surveys/index.cgi?f=FS&cat_id=6>
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Internet Week: Return of the middleman
Despite the promotion of the Internet as a direct-selling tool, many
companies are actively encouraging middlemen to join their supply
chains.
Although selling directly to the consumer seems like a logical way of
cutting costs, companies such as RetailExchange.com, an online
marketplace specializing in excess goods, believe that intermediaries
add value by offering services such as logistics and re-labeling.
On the RetailExchange.com website, intermediaries, known as jobbers,
can register as either buyers or sellers. The site will try to match
these jobbers with companies that have specific requirements, such as
a seller who needs to offload a batch of excess goods within a
certain period of time.
With the big motor companies moving tentatively into online dealing,
General Motors has also decided to include intermediaries in its
ecommerce strategy. Its new online marketplace, currently in
development, will let consumers price and specify equipment online
and use their local dealers for delivery and service. Ownership of
the marketplace will be split evenly between GM and its dealers.
For many manufacturers of consumer products, however, direct selling
on the Web seems to be the way forward. Nabisco and Polo Ralph Lauren
have started selling products online, while consumers can now buy
toys and apparel from Mattel through its Barbie.com site.
<http://www.internetwk.com/story/INW20001201S0002>
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Verizon: Small firms use Web for promotion, not ecommerce
Small businesses are setting up websites primarily to advertise and
promote their business, according to a new study.
Verizon's Small Business Internet Survey found that the number of
small businesses that established a website for advertising and
promotional reasons increased by 123 percent over the past year. In
the same period, the number of small business websites set up
primarily to provide ecommerce services decreased by 48 percent.
The survey highlighted the benefits for small businesses of having an
online presence. Over half (55 percent) of small businesses with a
website said their site had already broken even or paid for itself.
Sixty-five percent of these firms believed the Internet will play an
important role in the future of their business.
Figures from the survey suggest that small businesses with a website
may have an advantage over their competitors through broader
geographic reach and better understanding of the Internet.
Even so, small firms have been slow to embrace the Internet, with
only 27 percent of those polled having a website. The telephone
survey was conducted with 800 companies in the US with 50 or fewer
employees.
<http://newscenter.verizon.com/proactive/newsroom/release.vtml?
id=4646
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American Express: Mid-sized companies turn to e-procurement
New research from American Express has shown that e-procurement
activity is expected to intensify over the next 12 months, as an
increasing number of companies move to online purchasing.
The study found that 40 percent of mid-sized firms in the US are
already using the Internet to purchase supplies and equipment. Of
those that are not yet buying online, 37 percent plan to do so within
the next year.
For most companies, the chief advantages of buying online are not
lower costs, but time-saving and convenience. The top benefit cited
was faster order time (42 percent), followed by convenience (36
percent), while only 15 percent of online purchasers said the main
advantage was lower prices.
Although companies that purchase online still use checks as the main
form of payment, they spend less time dealing with salespeople and
faxing orders than companies using conventional purchasing methods.
<http://home3.americanexpress.com/corp/latestnews/ept_study.asp>
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ECOMMERCE
Archives: <http://www.nua.ie/surveys/index.cgi?f=FS&cat_id=14>
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PC Data: US consumers to buy more gifts online
Online consumers in the US plan to buy more gifts over the Web this
holiday season than the last, according to research by PC Data.
The survey found that online consumers intend to purchase 38 percent
of their holiday gifts online, up from 25 percent in 1999. Almost
half (47 percent) of their gifts will be bought at traditional retail
stores and 15 percent through catalogs.
Over 60 percent of Internet shoppers said their main motivation for
shopping online was to avoid the crowds, while 52 percent believed it
was easier to compare prices and products online. Nearly 45 percent
were attracted by the wide selection of products offered by Internet
stores.
Meanwhile, Forrester Research predicts that by 2005, consumers will
spend at least USD36 billion on gifts purchased over the Web.
Figures in the report 'Pulling in Online Gift Buyers' showed that 57
percent of Internet users have already purchased gifts online. Of
these shoppers, 84 percent said they were happy with their most
recent online gift purchase.
Forrester advised etailers to focus on their fulfillment capabilities-
for most online gift buyers, the top priority is that their gift
arrives on time.
<http://www.pcdataonline.com/press/pcdo113000.asp>
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Jupiter Media Metrix: Online 'window shoppers' to boost offline sales
Traditional high street stores in Europe will benefit this holiday
season from Internet 'window shopping,' according to Jupiter
Research.
Research from Jupiter suggests that the Internet may have a greater
impact on offline than online sales this season. It's estimated that
36 percent of European Internet users will use the Web to research
products before making their purchases in traditional stores, while
only 25 percent are expected to buy goods online.
Offline stores in Europe will benefit from sales of EUR7.5 billion
(USD6.6 billion) as a result of online window shopping. In
comparison, holiday sales on the Web are set to reach just EUR1.7
billion (USD1.5 billion).
According to Jupiter, traditional retailers can benefit from window
shopping by integrating their offline and online divisions. Although
many high street retailers have launched Internet stores, few have
managed to coordinate their physical and web-based operations
successfully.
Consumers who locate an item on a retailer's website should be able
to check that item's availability in the retailer's physical store.
Traditional retailers should also ensure that the returns policy
posted on their site is implemented properly by in-store staff.
Jupiter also advised traditional retailers to use online promotions
to drive Internet window shoppers to their physical stores.
<http://www.jup.com/company/pressrelease.jsp?doc=pr001204a>
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NOP Research Group: 30 percent of UK dotcoms in profit
Despite the stories of dotcom doom and gloom, new research shows that
30 percent of UK-based dotcoms made a profit last year.
The participants in NOP's Dotcom Panel appear to be an optimistic
bunch, with over 50 percent expecting to be in profit this year. Only
one of the 102 panel members believes they may not be in business by
this time next year.
In light of some high-profile dotcom failures earlier this year,
British ecommerce companies are changing their market strategies in
order to survive. The survey revealed that dotcoms plan to increase
their use of targeted campaigns with direct response measurement,
such as direct mails and advertisements in trade publications.
However, UK-based dotcoms may still be spending more than they can
afford on marketing. NOP advised dotcoms to focus on converting
registered users to buying customers rather than trying to acquire
new customers.
Companies in the US online retail sector are already taking this
route to profitability. A recent report by the Boston Consulting
Group found that spending on customer acquisition dropped
substantially between the second and third quarter of this year. In
an effort to reduce spending, US dotcoms have also cut back on
offline advertising.
<http://www.nop.co.uk/>
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FINANCIAL SERVICES
Archives: <http://www.nua.ie/surveys/index.cgi?f=FS&cat_id=4>
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Forrester Research: Swiss online banks are European leaders
Swiss banks Credit Suisse and UBS are the leading players in Europe's
online retail banking sector, according to the latest findings from
Forrester Research.
French banks Banque Directe and BNP Paribas rank third and fourth
respectively. Germany also features strongly, with four of its banks
(Advance Bank, Commerzbank, Deutsche Bank, and Direkt Anlage Bank) in
Forrester's top 10.
Although the UK has one of Europe's largest online populations,
British online banks have some way to go before reaching the
standards of their European counterparts-Barclay's, in sixth place,
was the only UK bank to feature in the top 10.
While Europe's top 25 banks are investing heavily in ecommerce
operations, Forrester warned that many will find it difficult to
compete with financial portals, brokerages, and insurers that can
deal with the overall financial needs of their customers.
In order to retain customers, online banks will need to provide user-
friendly, content-rich sites that integrate products, financial
planning tools, and services such as account aggregation and online
advice.
<http://www.forrester.com/ER/Press/Release/0,1769,453,FF.html>
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GENERAL DEMOGRAPHICS
Archives: <http://www.nua.ie/surveys/index.cgi?f=FS&cat_id=18>
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eMarketer: Scandinavia: a recipe for web success
The fact that all Scandinavian countries have higher rates of
Internet penetration than the rest of Europe is no coincidence, as
recent analysis from eMarketer shows.
PC penetration in Denmark was over 40 percent in 1999, largely due to
a government policy that allows companies to deduct the cost of
computers from their tax bills.
The high level of PC ownership in the country, widespread telephone
ownership, an IT-literate workforce, and the low cost of Internet
access have contributed toward the country's high rate of Internet
adoption. Currently, 38 percent of the adult population of Denmark
(1.7 million people) are active web users.
Finland, home of mobile-communications-giant Nokia, is a tech-savvy
nation, with two-thirds of the workforce using information technology
at work. The Finnish are motivated to use the Internet by low access
costs, the prevalence of free Internet terminals at public libraries
and schools, and the large distances separating people.
It's estimated that 1.9 million people, or 44 percent of the Finnish
adult population, will use the Internet for at least one hour a week
in 2000.
Sweden's rate of Internet adoption can be attributed to its well-
developed telecommunications infrastructure, high PC penetration,
prosperous economy, and educated population. Over 50 percent of
Swedish adults (3.9 million people) are active Internet users.
Internet penetration in Norway is currently at 45 percent of the
adult population. As with the other Nordic countries, the growth in
Internet access has been fostered by advanced infrastructures, high
PC and telephone penetration, a strong economy, and low connection
rates.
However, high taxes and the fact that it's not a member of the EU
(and therefore doesn't use the Euro) mean that there are more
constraints on Internet and ecommerce growth in Norway than in the
rest of Scandinavia.
<http://www.emarketer.com/etopics/articles/20001130_north.html?ref=dn>
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Mediametrie: Constant growth for French Net population
Internet penetration in France is continuing to grow steadily,
according to the latest findings from Midiamitrie.
The number of French Internet users over the age of 18 has increased
by 45 percent in a year, to 7.56 million from 5.21 million. About
16.3 percent of French adults are now online, compared with last
year's figure of 11.6 percent.
The percentage of women going online has also increased. Last year,
only 38.7 percent of French Internet users were women but that figure
has now increased to 40.5 percent.
Almost 35 percent of Internet users connect every day or nearly every
day, up from 28.1 percent last year. A further 37.1 percent go online
more than once a month while 28.2 percent only use the Internet once
a month or less often.
Over half of users (54.2 percent) go online at home, while 34.9
percent log on to the Internet at work and 34 percent use the
Internet in another location
All of the figures from Midiamitrie refer to Internet users who have
gone online at least once in the past year.
NOTE: The original report from Midiamitrie is in French.
<http://www.mediametrie.fr/fr/chiffre/plurimedia/2000/decembre.html>
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GOV/LEG
Archives: <http://www.nua.ie/surveys/index.cgi?f=FS&cat_id=19>
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IDG.net: EU countries pass joint ecommerce law
In an effort to increase consumer confidence in ecommerce, justice
ministers in the EU last week passed a bill that forces online stores
to abide by the laws of all EU member states.
The law, which comes into effect next March, will allow cross-border
disputes between consumers and online retailers to be settled in the
courts of the consumer's country. The EU hopes that handing
jurisdiction to the country in which the consumer is resident will
encourage more Europeans to shop online.
This bill pre-empts a global charter on cross-border online disputes,
expected to come into effect some time in the near future and
currently being discussed at a forum called the Hague Convention.
The current wording of the Hague Convention states that the consumer
country will only have jurisdiction if the online retailer
specifically targets that country. The EU's regulation, however,
states that if the website does not specify a country, it should be
assumed that the etailer is targeting all countries.
Some industry representatives have criticized the new bill, arguing
that protection against such cross-border settlements may prove too
costly for small and medium-sized enterprises. This legal
uncertainty may also deter venture capitalists from investing in
European web businesses.
Meanwhile, as reported by Europemedia.net, the European Commission
released figures last week which showed that the number of households
in the EU with Internet access has risen by 50 percent in the last
six months. In October 2000, 28 percent of EU households were
connected to the Web, compared with just 18 percent in March.
<http://www.idg.net/ic_300048_1794_9-10000.html>
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CompuServe: Japan passes Internet bill
Japan's parliament passed new legislation last week to encourage
Internet expansion in a bid to boost the country's flagging economy.
The bill, which comes into effect next January, is designed to ease
Internet regulations, expand ecommerce, and make Internet access more
affordable. It will establish a cabinet-level organization with
responsibility for introducing IT legislation and promoting the
principles outlined in the new law.
The law calls for the creation of programs to promote universal
Internet access and training in technology skills. The high cost of
Internet connection fees has long been seen as a major barrier to
Japan's development in the digital economy. The new legislation
encourages Government agencies to take regulatory measures to reduce
Internet access costs.
It also includes provisions for the development of egovernment
initiatives, which will enable Japanese people to access Government
services on the Web.
In other Japanese news, a recent survey by the US-based Center of
Social & Legal Research revealed that two-thirds of Japanese web
users are concerned about their privacy when going online.
Related links:
Center of Social & Legal Research
<http://newsroom.compuserve.com/gatewaynews/story.asp?
BTM=internet&idq=/apo/Tech/Tech_203.ASP&CoView=PORTAL&PV=TEC>
__________________________________________________________________
McConnell International: Most nations lack cyber crime laws
International cyber crimes may be impossible to prosecute, as most
countries have yet to update their laws to deal with computer-related
offenses.
In a report released this week by McConnell International, only 9 of
the 52 countries covered had legislation covering most types of cyber
crime, while 33 countries had no laws to deal with the problem.
Of the remaining countries, 10 had updated their laws to deal with
five or fewer types of computer-related crime.
Only one country, the Philippines, had extended its laws to deal with
every type of cyber crime. According to the report, the Philippines'
development of cyber crime legislation was prompted by its inability
to prosecute the student responsible for the Love Bug virus.
For its report, McConnell International looked at ten different types
of cyber crime, including data theft, unauthorized access, virus
dissemination, and computer-related fraud.
<http://www.mcconnellinternational.com/services/CyberCrime.htm>
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IT/COMPUTER INDUSTRY
Archives: <http://www.nua.ie/surveys/index.cgi?f=FS&cat_id=12>
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ZDNet: IT staff work longer, produce less
IT professionals are working longer hours but producing less,
according to a new report on global IT trends.
The study, by research firm Meta Group, found that US computer
professionals worked an average of 45 hours a week this year, an
increase of 36 percent from 1999. Working hours rose by 30 percent
outside the US.
Meta Group attributes the longer hours to the increasing complexity
of technology projects, which has led to a rise in on-the-job
learning. Because this learning takes time away from projects, IT
staff are forced to work longer hours to keep up.
Even with these extra hours, the high learning curve demanded by
projects has affected productivity among technology workers. The
average US software developer produced 9,000 lines of code in 1999.
This year, the average has fallen by 47 percent to 6,220 lines of
code. Productivity at non-US companies fell 29 percent, from 9,100
lines of code last year to 7,000 this year.
Other findings of the survey showed that the turnover of technology
staff has increased this year, both in the US and in other countries.
Turnover in the US rose from 8.4 percent in 1999 to 11.4 percent this
year, while outside the US the turnover rate stood at 12.6 percent,
up from 9 percent last year.
<http://www.zdnet.com/zdnn/stories/news/0,4586,2661710,00.html?
chkpt=zdhpnews01>
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PUBLISHING/MEDIA
Archives: <http://www.nua.ie/surveys/index.cgi?f=FS&cat_id=46>
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Gallup: US public turns to the Web for election crisis news
Over two-thirds (67 percent) of US Internet users have sought news
online about the election recount in Florida, according to a survey
by Gallup.
Sixty percent of those polled said they had followed the presidential
campaign online and half believe that Internet voting will become the
norm in the future.
When asked about their use of the Internet before the election, 60
percent said they had used the Web to keep track of political news,
while 52 percent said they had used it to find out about a
candidate's background and his position on certain issues. Just over
a third had visited a presidential candidate's campaign website.
Despite the widespread use of the Internet for news, most Internet
users (54 percent) cited TV as the news source they enjoyed the most.
TV was also deemed the most up-to-date and immediate news source by
59 percent of respondents, with 24 percent opting for the Internet.
<http://www.gallup.com/poll/releases/pr001130.asp>
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