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Penetration in Central and Eastern Europe
IDC
Internet Penetration in Central and Eastern
Europe
Prague, 12 February 2003 - Internet usage rates
in Central and Eastern Europe (CEE) continue to climb steadily, driven by users
in the workplace and schools, according to a new report from IDC. The percentage
of the population using the Internet at least once a month in the region is
forecast to reach 17% in 2003 and 27% in 2006.
"Although research indicates penetration levels in the region are continuing to
grow, the market is still trailing behind Western European levels. This trend
should continue through 2006," said Joshua Budd, Senior Analyst with IDC CEMA's
Telecoms and Internet group. "Low home penetration rates across the CEE region
are preventing the market from reaching its full potential."
The latest results of IDC's research on Internet and ecommerce trends in CEE
appear in a new report, Internet Usage and eCommerce in Central and Eastern
Europe, 2001-2006. The report covers Internet usage and Internet access device
trends, along with ecommerce markets in 11 Central and Eastern European
countries.
"Estonia and Slovenia stand out as leaders in the region, as both countries have
Internet penetration levels on par with Western Europe," Budd added. "This can
be attributed to government efforts to promote Internet usage in schools and
public access points, as well as to private initiatives among businesses to
promote the Internet."
Increasing Internet penetration levels are also contributing to growth in the
region's ecommerce markets. While B2C ecommerce still accounts for a small
percentage of the total ecommerce market, the appearance of several new
emarketplaces in the region and the growing availability of PCs and office
supplies for sale on the Internet are pushing B2B revenue upward.
Total ecommerce spending in the CEE region is projected to reach $4.4 billion in
2003. Of this total, B2B will account for 90%. B2B will continue to constitute
the bulk of ecommerce spending over the next five years. In 2006, the total
ecommerce market should reach a value of $17.6 billion.
"The key ecommerce markets in CEE continue to be the Czech Republic, Hungary,
and Poland," Budd said. "Together, the three countries represent nearly 90% of
the CEE market's total value."
One of the main inhibitors to ecommerce remains the high cost of Internet access
and low Internet penetration levels in the region. The growing availability of
broadband access services, particularly in Poland, Hungary, and the Baltic
States, should drive the market forward in terms of both time spent online and
penetration. Still, Internet usage in the region is currently driven primarily
by dial-up Internet access.
According to IDC's report Internet Access Services in Central and Eastern
Europe, 2001-2006, total Internet connections are projected to reach 5.6 million
in 2003. Dial-up connections should represent approximately 85% of the total.
"Broadband will have to become more widespread throughout the CEE region and
home penetration levels will have to increase before the market reaches its full
potential," Budd commented.
The Internet Usage and eCommerce in Central and Eastern Europe, 2001-2006 report
sizes and forecasts Internet usage and ecommerce both for the region as a whole
and on a country-by-country basis for Bulgaria, Croatia, the Czech Republic,
Estonia, Latvia, Lithuania, Hungary, Poland, Romania, Slovakia, and Slovenia.
Web user and Web device numbers are segmented by three access locations: home,
work, and school/public access. eCommerce is segmented by B2C, B2B 'end-use',
and B2B 'process' or 'supply chain'. For all indicators, historical data is
provided for 2001, with forecasts through to 2006. In addition to the
quantitative data, presented in more than 90 figures and tables, there is
extensive qualitative analysis outlining the relevant demographic and economic
background to the region.
The report Internet Access Services in Central and Eastern Europe, 2001-2006
sizes, forecasts, and analyzes the markets for consumer and business Internet
access services via dial-up, broadband, and leased line connections in the
Central and Eastern European countries of Bulgaria, Croatia, the Czech Republic,
Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia, and Slovenia.
Demand for Internet access services in the region continues to expand rapidly,
driven by sustained growth in new users joining the Internet, decreasing prices
for dial-up access services, the emergence of broadband access technologies, and
continuing price erosion of leased lines. This report includes the following: .
Forecasts of consumer and business Internet connections and revenue for dial-up
(PSTN and ISDN), broadband (an aggregation of DSL, cable, and fixed wireless
connections), and leased line access services . Analysis of major current market
developments . Profiles of service providers per country . An overview of market
and regulatory conditions in Central and Eastern Europe
IDC is the foremost global market intelligence and advisory firm helping clients
gain insight into technology and ebusiness trends to develop sound business
strategies. Using a combination of rigorous primary research, in-depth analysis,
and client interaction, IDC forecasts worldwide markets and trends to deliver
dependable service and client advice. More than 700 analysts in 43 countries
provide global research with local content. IDC's customers comprise the world's
leading IT suppliers, IT organizations, ebusiness companies and the financial
community.
IDC is a division of IDG, the world's leading IT media, research, and exposition
company.
For the Emerging Markets, IDC retains a coordinated network of offices and
agents in Budapest, Bucharest, Kiev, Moscow, Sofia, Warsaw, Zagreb, Dubai,
Johannesburg, Tel Aviv, and Cairo, supported by regional research centers in
Prague and Istanbul.
