50 MILLION PEOPLE IN EU ACCESSION COUNTRIES WILL ACCESS THE INTERNET REGULARLY BY 2007

The latest findings from Aqute Research show that 15 per cent of the total population in the thirteen EU accession countries (Bulgaria, Cyprus, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Romania, Slovakia, Slovenia and Turkey) will access the internet by the end of 2003. This is set to grow to 28 per cent by 2007.

50 MILLION PEOPLE IN EU ACCESSION COUNTRIES WILL ACCESS THE INTERNET REGULARLY BY 2007

The latest findings from Aqute Research show that 15 per cent of the total population in the thirteen EU accession countries (Bulgaria, Cyprus, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Romania, Slovakia, Slovenia and Turkey) will access the internet by the end of 2003. This is set to grow to 28 per cent by 2007.

Overall, the online population of accession countries will grow from 25 million in 2003 to 50 million in 2007. Estonia, Slovenia and Malta will achieve the highest online penetration rates with 58 per cent, 43 per cent and 42 per cent of people online by 2007, respectively.

The EU accession countries start off with low credit card penetration, low home PC penetration, a high fear level about fraud and limited online tenure," says Michele Poliziani, analyst with Aqute Research. It will take these countries some years to get close to the levels of online activity we see among current EU members". On top of this, the social and cultural aspects of shopping make the internet less appealing, adds Poliziani.

Aqute Researchs findings show that the number of internet users actually buying online will remain low. By the end of 2003, the number of online buyers in the accession countries will grow to 1.9 million or almost 8 per cent of the total online population. Most shopping will be for low-value items, keeping average spending per buyer low and total online retail at €183million in 2003.

Three countries - Poland, Hungary and the Czech Republic - will account for 61 per cent of this spending. By 2007, 16 per cent of internet users in the thirteen accession countries will shop online and total online retail spending will reach almost €1 billion.

Poliziani: Most users have limited online experience so will be less likely to shop, since shoppers tend to be mature users. And with income levels far below those of many EU members, online spending is set to remain low. However, the group of accession countries as a whole will still become a billion euro market online by 2007".

About Aqute Research
Aqute Research, the analyst and market research company, is devoted to digital technology. Helping corporates and vendors to make sense of technology strategy, Aqute Research analysts focus exclusively on new technologies such as wireless, the internet and interactive television. Aqute Research services include market sizing and forecasting, industry and country analysis, benchmarking and best practice analysis.

For further information, contact:

James MacAonghus
Email : jmacaonghus@aqute.com
Tel : +44 20 7849 6134