Internet Penetration in Central and Eastern
Europe to Reach 17% in 2003
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.
