The number of Internet users in Asia will grow at a compound annual rate of 40 per cent in the next five years to reach 64 million by 2003, says a Goldman Sachs Investment Research report. This is twice the growth rate expected in the US during the same period.
Titled `Goldman Sachs Asia Web', the report states Internet business will generate about $32 billion in e-commerce sales in the continent besides turning Internet advertising into a $ 1.5 billion industry by 2001.
The report analyses the three main ways of generating revenue through Internet _ connectivity, advertising and e-commerce. It also provides an overview of Internet growth in the seven Asia-Pacific nations and profiles more than 20 listed and unlisted Internet-related companies in Asia.
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Some of the other conclusions drawn in the report are:
l The e-commerce market in Asia is expected to be worth
$ 32 billion by 2003, a 145 per cent compound annual growth rate, against $ 700 million in 1998.
l Successful initial public offerings (IPOs) will be made by Asian Internet companies with qualified management teams, focused and sustainable business models and backed by strategic investors and/or credible venture capitalists
l In the next 12 months, Internet service providers (ISPs) offer the best revenue generation potential.
l Asia's Internet scene lags behind the US by two-three years but the gap is narrowing rapidly.
l The on-line advertising market will go through a rapid growth phase since it is a tried, tested and effective advertising medium in the US. The likely dominant markets will be China, Australia, South Korea and Taiwan.