European Net Penetration May Plateau Below US, Finds EC
Internet penetration across Europe may have reached a plateau, according to a European Commission report – eEurope 2002 – released this month.
The report says that the plateau is a result of the level of PC ownership across Europe. Whilst Net access via interactive television and mobile devices remains negligible, PCs are the primary source of access. This means that the level of PC ownership effectively puts a ceiling on the reach of internet penetration.
In countries with the highest levels of PC ownership, Net penetration levels have reached around 60% of households and further growth will now be limited. As these countries are the key drivers of EU growth, if they have reached a ceiling, that might explain the slow-down in EU internet growth overall.
Population figures Internet use across the population in Europe is higher than the household penetration figures suggest. In November 2001, 50% of people over 15 years used the web either at home, work, school or in public places. More than 80% of users go online at least once a week.
In absolute numbers, internet usage in Europe is more or less as high as that of the US, although penetration growth last year lagged behind the States.
Forecasts The EC report predicts that by the end of this year European internet penetration will have reached a minimum of 30% and an average of 50% could be achieved.
However, European penetration may well settle below the US level. “It therefore seems necessary to give more policy attention to alternative platforms for internet access, such as mobile communication devices and digital TV,” the report advises.
E-commerce is facing particular difficulties. It is growing, but much slower than expected and seems to be mainly taken up by well-established companies. “An urgent review is required to identify obstacles to e-commerce take-up,” warns the EC.