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Net access to grow 250 percent in Europe

December 8, 1998
Web posted at: 4:40 PM EST

by Jana Sanchez-Klein

LONDON (IDG) -- By 2003, one in three households in Europe will have Internet access, according to a new study produced by Datamonitor.

With only 12.5 million European households currently using the Internet today, usage is expected to increase by 250 percent to over 43 million users by 2003, according to the report.

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The most significant cause of the increased adoption of the Internet by Europeans is the continuous increase in the penetration of Internet-enabled devices, such as PCs, throughout the region, said Datamonitor in a statement.

Other drivers for the increased uptake will be falling subscription charges and improved content offerings, said Datamonitor.

"Despite huge and growing demand for Internet access services, increasing competition and commoditization of Internet access faced in each western European market is forcing ISPs to lower their prices," said the statement. The average monthly subscription fee in Europe is decreasing yearly and some ISPs in Germany and Sweden are offering free Internet access.

Today, the German Internet access market is by far the largest in Europe, making up more than 40 percent of the total Internet access market in Europe and generating US$948 million. The U.K. is the next largest market at $519 million in revenues and the Netherlands follows with $196 million. The least-developed Internet market is Greece, with only $4 million in revenues and 20,000 subscribers.

The report is called "PC-based Internet access markets in Europe, 1998-2003: Surviving Market Consolidation."

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