China Telecom 2000

Market Studies

Internet & Online Services Market

Release: 2003

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    Internet & Online Services Market:


    Annual report on: Internet developments, IP telephony, Intranets and Extranets, Datacasting, Internet (KA-Band); websites, web hosting; videostreaming; highspeed services; telecities; e-communities.
    Report also contains: Technology information, Global overview, Trends and Developments, Business Strategies, User statistics, Revenues and forecasts, ISP Markets, Industry issues and regulatory.


    Overview:


    The Internet has grown at a remarkable rate since its inception, but that rate is now slowing, mainly due to the unmet need for increased speed. E-mail is still the major application, thriving because of its non-dependence on speed. However, the huge potential markets for such applications as e-commerce and webcasting demand broadband infrastructure that is slow in coming.

    The growing demand for data services is being accompanied by the development of Internet Protocol (IP) technologies allowing convergence of voice and data. Virtual Private Networks (VPNs) is the fastest growing market segment here.

    Governments are starting to catch up with the explosion in the Internet, and are now trying to cope with the nuisances that Internet has spawned, such as online gambling, porn, tax evasion, cybercrime and incessant spam. International cooperation is of the essence in solving these problems.

    At the same time, the Internet is opening us up to ready membership of international common interest groups and it allows us to gain vast knowledge. The huge growth of computer dating allows us to be intimate with people we have never met. The ability to interact with the whole world without leaving your study is entrancing for many, convenient for most.

    On the commercial and political side, the Internet facilitates international trade. It allows people in developing countries to participate profitably in the commerce of developed countries. Used wisely, it allows the barriers between cultures to be gradually broken down due to increased knowledge and understanding. It allows social groups to grow and exert sufficient pressure on governments to produce significant changes in national policy.

    The Report provides overviews of these developments and analyses of many of these trends and developments, allowing organisations to pursue those business opportunities that add to their bottom line, rather than chasing industry and technology hype. A range of statistics provides essential data for the development of business strategies and business plans.

    Table 3 – Internet population by region

    Region (millions)
    Europe 195
    Asia/Pacific 190
    Canada & USA 185
    Latin America 35
    Africa 6
    Middle East 5
    World Total 616

    (Source: Paul Budde Communication, International Internet Market

    Table of Contents

    1. MARKET ANALYSIS – 2003 
    1.1 Executive summary 
    1.1.1 Statistics overviews 
    1.1.2 Governing policies 
    1.1.3 Infrastructure 
    1.1.4 High-speed Internet 
    1.1.5 Marketing, advertising, pricing 
    1.1.6 Convergence – IP applications 
    1.1.7 VoIP 
    1.1.8 Websites, hosts, ISPs 
    1.1.9 Electronic communities 
    1.1.10 Webcasting, video streaming 
    1.1.11 Cybercrime and spam 

    2. STATISTICS OVERVIEWS 

    2.1 Latest research 
    2.1.1 ITU Mobile/Internet Index 
    2.1.2 Probe Research 
    2.1.3 Snapshot 
    2.2 Growth of the Internet 
    2.3 Most popular online activities 
    2.3.1 Internet for news gathering 
    2.3.2 Online government services 
    2.4 Regional overviews 
    2.5 Language statistics 
    2.6 Internet charges 
    2.7 Revenue statistics 
    2.8 Browser access 
    2.9 Residential and business markets 
    2.9.1 User statistics 
    2.9.2 Less residential use than we were told 
    2.9.3 Residential demographics 
    2.9.4 Usage patterns 
    2.9.5 Residential users 
    2.9.6 Seniors market 
    2.9.7 Business market 
    2.9.8 Business to employees (B2E) systems 
    2.10 Business trends and strategies 
    2.10.1 The Internet in 2003 
    2.10.2 New models for the telco industry 
    2.10.3 Permission-based marketing 

    3. GOVERNING POLICIES 

    3.1 Interconnect costs 
    3.1.1 Australia takes on the USA 
    3.1.2 Ruling not accepted by USA 
    3.2 Internet Telephone Numbering System 
    3.3 The Governing of Internet domain names
    3.3.1 Introduction 
    3.3.2 ICANN 
    3.3.3 Multilingual domain names 
    3.3.4 The World Intellectual Property Organisation process 

    4. INFRASTRUCTURE 

    4.1 Dramatic slow down in growth of global Internet backbone 
    4.2 The Internet network 
    4.2.1 A global network of networks 
    4.2.2 Key players 
    4.2.3 ARPA (Advanced Research Projects Agency) 
    4.2.4 National Science Foundation (NSF) 
    4.2.5 From defence to commerce 
    4.2.6 Exploding network growth 
    4.2.7 International bandwidth 
    4.2.8 New York is the global Internet capital 
    4.3 New distribution environment 
    4.4 The World Wide Web Consortium 
    4.5 IPV6 forum 
    4.6 Internet standard for privacy 
    4.7 Global Internet Project (GIP) 
    4.8 Next generation Internet 
    4.9 Global Terabit Research Network (GTRN) 
    4.9.1 Research partnership 
    4.9.2 Advanced networking 
    4.9.3 Global connectivity 

    5. BROADBAND INTERNET 

    5.1 Market analysis 
    5.1.1 Introduction 
    5.1.2 High-speed, always on Internet 
    5.1.3 Multi access services 
    5.1.4 IP-based applications 
    5.1.5 Cable TV networks for multi access 
    5.2 New distribution environment 
    5.3 Broadband Internet 
    5.4 Cable and DSL Internet connections to explode 
    5.5 ISPS try to force high-speed access 
    5.6 Internet via satellites 
    5.7 Wireless Internet access 
    5.7.1 Higher-speed access 
    5.8 Ka-Band 
    5.8.1 Preparing for a global data network 
    5.8.2 What is Ka-Band 
    5.8.3 Market issues 
    5.8.4 Internet-in-the-sky 
    5.8.5 Network issues 
    5.8.6 Industry issues 
    5.8.7 Market forecasts 
    5.9 Ka-Band – players and projects 
    5.9.1 What is Ka-Band 
    5.9.2 Major players 


    6. MARKETING, ADVERTISING, PRICING 

    6.1 Internet turns telecoms into marketing tool 
    6.2 Personal rich media 
    6.2.1 Video will transform the experience 
    6.2.2 People’s creativity will be unleashed 
    6.2.3 Web storage needs an increase 
    6.2.4 More and different end-user equipment 
    6.2.5 Business applications 
    6.3 Internet advertising 
    6.3.1 Revenue overview 
    6.3.2 Costs of Internet advertising 
    6.3.3 Costs of direct e-mails 
    6.3.4 Marketing issues 
    6.3.5 Internet stimulates other shopping habits 
    6.3.6 Changes in Web advertising 
    6.3.7 Dubious tactics 
    6.4 Trends in customer behaviour 
    6.5 Market segments 
    6.6 Price elasticity and interactive services 
    6.7 Public Internet terminals 
    6.8 Marketing – Paul’s opinion 
    6.8.1 Introduction by Paul Budde 
    6.8.2 The end of shopping malls and walled gardens 
    6.8.3 The dotcom crash 

    7. CONVERGENCE – IP APPLICATIONS 

    7.1 Converging networks 
    7.1.1 Dedicated voice and dedicated data networks 
    7.1.2 Changes driven by IP 
    7.1.3 Multi Protocol Label Switching (MLPS) 
    7.1.4 Next Generation packet networks 
    7.1.5 IP objectives 
    7.2 IP=IT 
    7.2.1 From Internet telephony to VoIP 
    7.2.2 From basis services to value added applications 
    7.3 IP - enhanced services 
    7.4 Technology Forecast: 2002-2004 
    7.4.1 Emerging patterns of Internet computing 
    7.4.2 Grid computing 
    7.4.3 Computing as a utility 
    7.4.4 IP dialtone 
    7.4.5 802.11 
    7.5 Other forecasts 
    7.5.1 Operators have no choice 
    7.5.2 Pent up demand for new IP based services 
    7.5.3 Competitors will built their bypasses on IP 
    7.5.4 Well suited for various access technologies 
    7.5.5 IP in other industries 

    8. VOIP 
    8.1 IP telephony is now mature 
    8.2 IP beyond VOIP 
    8.3 IP integrates voice and data 
    8.3.1 The continuing importance of voice 
    8.3.2 Quality issues 
    8.3.3 Corporate VPN 
    8.4 Historic overview 
    8.5 IP is turning telecommunications into IT 
    8.5.1 Opportunities in green field operations 
    8.5.2 Problems with traditional PABXs 
    8.5.3 IP PABX set of standards 
    8.6 H.gcp IP telephony standard 
    8.7 IP Market statistics and forecasts 
    8.7.1 Market overviews 
    8.7.2 Infrastructure 
    8.7.3 Revenue 
    8.7.4 Regional developments 
    8.7.5 IP traffic 
    8.7.6 Consumer demand 
    8.7.7 IP equipment markets 
    8.8 Technology issues 
    8.8.1 Voice over IP service (VoIP) 
    8.8.2 Video-On-Demand (VOD) 
    8.8.3 IP over mobile networks 
    8.9 Regulatory issues 
    8.9.1 Introduction 
    8.9.2 Carriers, governments and IP Telephony 
    8.9.3 The ITU opinions 
    9. WEBSITES, HOSTS, ISPS 
    9.1 Internet hosts 
    9.1.1 Web server software market 
    9.2 Domain names 
    9.3 Websites 
    9.3.1 The Web 
    9.3.2 Website statistics 
    9.4 Web hosting 
    9.5 Internet content 
    9.6 Search engines 
    9.7 Intelligent agent (knowbots) 
    9.8 The ISP market 
    9.8.1 ISPs conquering the world 
    9.8.2 Internet company failures declining 
    9.8.3 The costs of acquiring customers 
    9.8.4 Free Internet 
    9.8.5 The backbone/wholsale market 
    10. WEBCASTING, VIDEO STREAMING 
    10.1 Webcasting 
    10.1.1 What is Webcasting? 
    10.1.2 The advantages of Webcasting 
    10.2 Video streaming 
    10.2.1 Introduction 
    10.2.2 Key players 
    10.2.3 Key developments 
    10.2.4 Market forecasts 
    10.3 Internet TV 
    10.4 Multicasting 
    10.4.1 First initiatives 
    10.4.2 Global multicasting 
    10.5 Internet radio 
    10.5.1 Simulcasting 
    10.5.2 Secure digital music initiative 
    10.5.3 The perils of commercial radio stations on the Web 
    10.5.4 Brief timeline of music on the Internet 
    10.6 Developments and forecasts 
    10.6.1 Videostreaming still disappoints – late 2002 
    10.6.2 TV and/or PC? 
    10.6.3 Narrowband developments of the 1990s 
    10.6.4 Broadband networks key to breakthrough 
    10.6.5 Some early results 
    10.6.6 The International Webcasting Association (IWA) 
    10.6.7 Media streaming report from CTIN 
    10.6.8 Market analysis 
    10.6.9 Internet screenphones 
    10.6.10 Internet videoconferencing 
    11. CYBERCRIME AND SPAM 
    11.1 An international problem 
    11.1.1 Consumer fears in the US 
    11.2 Crime statistics 
    11.2.1 Statistics for 2002 
    11.3 Forms of cybercrime 
    11.3.1 Viruses 
    11.3.2 Hacking and cyberterrorism 
    11.3.3 The Nigerian scam 
    11.3.4 Identity theft 
    11.3.5 Libel 
    11.4 Efforts at crime prevention 
    11.4.1 Far reaching anti-crime powers in Britain 
    11.4.2 Internet crime bill in the USA 
    11.4.3 Filters 
    11.5 Unsolicited commercial e-mail (spam) 
    11.5.1 Coalition against unsolicited commercial e-mail 
    11.5.2 Deterrence measures for spam 
    12. TECHNOLOGY 
    12.1 Overview 
    12.1.1 Introduction 
    12.1.2 Conclusion 
    12.2 TCP, UDP 
    12.2.1 Introduction 
    12.2.2 UDP, TCP packets 
    12.2.3 IP Addresses 
    12.2.4 Upgrading to IPv6 
    12.3 Web browsing, Routing and Flexibility 
    12.3.1 A Web browsing example of TCP and HTTP 
    12.3.2 Routing, speed and reliability 
    12.3.3 Flexibility and contrasts with the phone system 
    12.4 The Domain Name System 
    12.4.1 The Domain Name System – DNS 
    12.4.2 Registering a Domain Name 
    12.4.3 DNS in action – translating a name into an IP address 
    12.5 Applications and Protocols 
    12.5.1 Introduction 
    12.5.2 Usenet ‘newsgroups’ – NNTP 
    12.5.3 IRC – Internet relay chat 
    12.5.4 Network File System – NFS 
    12.5.5 Windows networking – SMB, CIFS and SAMBA 
    12.5.6 Virtual Private Networks – VPNs 
    12.6 E-mail 
    12.6.1 Clients and servers 
    12.6.2 Simple Mail Transport Protocol – SMTP 
    12.6.3 Security limitations of SMTP 
    12.6.4 Encryption for security and authentication 
    12.6.5 Protocols for retrieving E-mails 
    12.6.6 Attachments 
    12.6.7 Operational guidelines and plain-text formats 
    12.6.8 E-mail discussion lists 
    12.7 HTTP and HTTPS 
    12.7.1 HTTP and FTP 
    12.7.2 FTP 
    12.7.3 HTTP 
    12.7.4 FTP more efficient for large files 
    12.7.5 URLs which encode session information 
    12.7.6 Cookies 
    12.7.7 Proxy Servers for HTTP and FTP 
    12.7.8 Simple servers and complex clients 
    12.7.9 The challenge of complex Websites 
    12.7.10 Server-side programming and database driven Websites 
    12.7.11 Secure HTTPS 
    12.8 Telephony and Voice over IP 
    12.8.1 VoIP 
    12.8.2 Internet telephony 
    12.8.3 VoIP on private networks 
    12.8.4 Comparing the Internet and the telephone network 
    12.9 Search engines and Directories 
    12.9.1 Introduction 
    12.9.2 Web Directories 
    12.9.3 Search engines 
    12.10 Streaming Media 
    12.10.1 Streaming video and audio 
    12.10.2 Unidirectional and bidirectional streaming 
    12.10.3 Video on demand and bandwidth restrictions 
    12.10.4 Open-standard streaming systems 
    12.10.5 Proprietary streaming systems 
    12.10.6 File download vs. server streaming 
    12.10.7 Commercial aspects of proprietary systems 
    12.11 Data and Internet Terminology Explained 
    12.11.1 Asynchronous Digital Subscriber Line - ADSL 
    12.11.2 Application Services Provider - ASP 
    12.11.3 ATM - Asynchronous Transfer Mode 
    12.11.4 Bandwidth 
    12.11.5 broadband-integrated services digital network - B-ISDN 
    12.11.6 Bits per second 
    12.11.7 Broadband (wideband) 
    12.11.8 Broadband network 
    12.11.9 Cable modem 
    12.11.10 Circuit switched networks 
    12.11.11 Client 
    12.11.12 Client server 
    12.11.13 Colocation, co-location or collocation 
    12.11.14 coarse wave division multiplexing - CWDM 
    12.11.15 Cyberspace 
    12.11.16 Dark fibre 
    12.11.17 Data services 
    12.11.18 Domain Name 
    12.11.19 Domain Name System (DNS) 
    12.11.20 Digital Subscriber Line - DSL 
    12.11.21 Dense Wavelength division multiplexing - DWDM 
    12.11.22 E-Commerce - electronic commerce 
    12.11.23 E-mail 
    12.11.24 Ethernet 
    12.11.25 Extranet 
    12.11.26 FDM - Frequency-Division Multiplexing 
    12.11.27 Fibre condominium arrangement 
    12.11.28 Fibre optics/optical fibre 
    12.11.29 File Transfer Protocol (FTP) 
    12.11.30 Firewall 
    12.11.31 Frame relay 
    12.11.32 Gateway 
    12.11.33 Host computer 
    12.11.34 HTML 
    12.11.35 HTTP 
    12.11.36 HTTPS 
    12.11.37 Internet Access Provider - IAP 
    12.11.38 Internet Protocol – IP 
    12.11.39 Internet services 
    12.11.40 Internet subscriber 
    12.11.41 Internet user 
    12.11.42 Intranet 
    12.11.43 IP address and port number 
    12.11.44 integrated services digital network - ISDN 
    12.11.45 Internet service provider – ISP 
    12.11.46 information technology - IT 
    12.11.47 kilobits per second - Kb/s 
    12.11.48 Local Area Network – LAN 
    12.11.49 Last mile 
    12.11.50 Metropolitan Area Network - MAN 
    12.11.51 Managed Applications Service Provision - MASP 
    12.11.52 MB - megabyte 
    12.11.53 Modem 
    12.11.54 Multimedia 
    12.11.55 Network 
    12.11.56 Online Service Provider - OSP 
    12.11.57 Outsourcing 
    12.11.58 Packet filtering 
    12.11.59 Packet dwitched networks 
    12.11.60 passive optical network - PON 
    12.11.61 Point of Presence - POP 
    12.11.62 Portal 
    12.11.63 Postalised rates 
    12.11.64 Protocol 
    12.11.65 Protocol stack 
    12.11.66 Proxy server 
    12.11.67 Router 
    12.11.68 Synchronous Digital Subscriber Line - SDSL 
    12.11.69 Security, vulnerability 
    12.11.70 Server 
    12.11.71 Transmission Control Protocol/Internet Protocol - TCP/IP 
    12.11.72 Time Division Multiplexing - TDM 
    12.11.73 Teleconferencing 
    12.11.74 Telnet 
    12.11.75 Terabyte 
    12.11.76 UDP 
    12.11.77 UNIX, BSD, LINUX 
    12.11.78 URL 
    12.11.79 Virtual Private Network – VPN 
    12.11.80 Value Added Network Or Virtual Area Network – VAN 
    12.11.81 Value-Added Services – VAS 
    12.11.82 Virus, worm, trojan 
    12.11.83 Voice over Internet Protocol – VoIP 
    12.11.84 VPN 
    12.11.85 VSAT networks 
    12.11.86 Wide Area Network - WAN 
    12.11.87 WDM - Wave Division Multiplexing 
    12.11.88 WWW 
    12.11.89 X.25 
    12.11.90 xDSL 
    13. GLOSSARY OF ABBREVIATIONS 


    Exhibit 1 – The business of Internet: market sizes, infrastructure and players – 2000 
    Exhibit 2 – Generic Top Level Domains 
    Exhibit 3 – Key Internet events – 1996-2002 
    Exhibit 4 – Drivers of high-speed Internet 
    Exhibit 5 – Frequency spectrum allocation for common commercial US SATCOM bands 
    Exhibit 6 – Satellite-based ISPs 
    Exhibit 7 – Consumer behaviour on Internet 
    Exhibit 8 – IP based enhanced services 
    Exhibit 9 – Recently launched VoIP services – late 2002 
    Exhibit 10 – Established IP Vendors 
    Exhibit 11 – The phenomenon of the 1990s 
    Exhibit 12 – What are Intelligent Agents? 
    Exhibit 13 – How to avoid ads 
    Exhibit 14 – Equivalence between access modes and traditional audiovisual use 
    Exhibit 15 – JANET 
    Exhibit 16 – Music Player 3 
    Exhibit 17 – Timeline of music on the Internet – 1984-2003 
    Exhibit 18 – Spam characteristics 
    Exhibit 19 – Most commonly seen Spam 
    Exhibit 20 – An 8 address TCP/IP subnet 
    Exhibit 21 – Traceroute of Routers between Melbourne and Iceland 
    Exhibit 22 – Generic Top Level Domains 
    Exhibit 23 – Australian Second Level Domains 
    Exhibit 24 – Contrasts between the telephone network and the Internet 
    Exhibit 25 – Estimated hours per month spent with major search engines 
    Exhibit 26 – Add URL pages for major search engines 
    Exhibit 27 – Adoption of digital broadband technologies 

    Table 1 – Worldwide top 20 mobile/Internet index ratings – 2002 
    Table 2 – Internet population by region – 2002 
    Table 3 – Worldwide connections to the Internet – 1993-2000 
    Table 4 – Internet users – 1990-2005 
    Table 5 - Online activities in US – 2002 
    Table 6 – Preferred US sources of news at work – 2002 
    Table 7 – Internet users per region – 1999-2002, 2005 
    Table 8 – Expected CAGR of Internet users by region – 1999-2005 
    Table 9 – Distribution of Internet users by language – 2001-2002 
    Table 10 – Global dial-up Internet tariffs – 2001 
    Table 11 – Internet revenue forecasts in 2001 – Europe vs USA 
    Table 12 – Browser market shares – 1997-2002 
    Table 13 – Online penetration in households – 1996-2000 
    Table 14 – Information sources of Internet users 
    Table 15 – Time spent online at home in top 10 countries – 2001 
    Table 16 – Internet bandwidth and business users by industry sector – 2000 
    Table 17 – Most responsive marketing methods worldwide – 2001 
    Table 18 – Media buyers’ prime source for e-mail marketing news and information – 2001 
    Table 19 – Permission e-mail message volume in the US – 1999-2003 
    Table 20 - Online language populations – 2002 
    Table 21 – International Internet bandwidth by region – 2000-2002 
    Table 22 - Share of capacity by provider on US Internet routes - 2002 
    Table 23 – Top 10 interregional Internet hub cities - mid-2001 
    Table 24 – High-speed growth – 1998–2002 
    Table 25 – Internet access – 2001 
    Table 26 – Value of satellite ISP link marketplace – 1998-2001; 2006 
    Table 27 – Total value of the IP over satellite market – 1998-2000 
    Table 28 – Global capacity of transponders – 1997, 1999 and 2002 
    Table 29 – Revenue predictions – 1998-2005 
    Table 30 – Interactive advertising by platform – 2005 
    Table 31 – World’s top 10 brands 
    Table 32 – Price elasticity 
    Table 33 – Preferred pricing: flat monthly or use-based charge 
    Table 34 – Growth of Network Traffic – 1999-2003 
    Table 35 – IP market-share of total telephony – 1997-2002 
    Table 36 – IP telephony service market by region – 1997-2002 
    Table 37 – Forecast IP and PSTN traffic – 1997-2002 
    Table 38 –VoIP minutes – 2000-2002 
    Table 39 – IP telephony hardware sales – 1997-2002 
    Table 40 – Growth in the number of Internet hosts – 1984-2002 
    Table 41 – Web server survey – 2002 
    Table 42 – TLDs and ccTLDs ranking – 2002 
    Table 43 – Total number of websites worldwide – 1997-2003 
    Table 44 – Worldwide market shares for search engines – 2002 
    Table 45 – US services with most fraud related complaints – 2002 
    Table 46 – Major Internet frauds in the US – 2002 
    Table 47 – Countries with most digital attacks – 2002 
    Table 48 – Proportion of pornography and health sites blocked by Internet filters – 2002 
    Table 49 – Spam received/user in US – 2000-2006