By Felicity Ussher, 3 August 1998 13:02
NEWS Europe's spending on access to the Internet is expected to increase by over $9bn in the next three years, according to a recent report from Forrester Research. The report predicts that spending on Internet access will increase from $2.5bn in 1998 to $11.8bn in 2001, driven mainly by the growth in business-to-business ecommerce. Consumer access will grow too, but at a lower rate due to high phone rates and low PC usage. Matthew Hare, managing director of Oxford Community Net and a member of the Internet Service Providers Association, stressed that despite the growth in revenue, Internet service providers (ISP) are not making huge profits. "ISPs reinvest large amounts of money in hardware, new technologies and telecommunication connectivity," he said. "Our £10 per month price model has been pretty fixed for the past four years." Hare added that the main profit-makers from access spending are the telephone companies.
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