IP: Europe held back by phone charges

[Dave Farber <farber () cis upenn edu>]

> From: "the terminal of Geoff Goodfellow" <geoff () iconia com>
> To: "Dave e-mail pamphleteer Farber" <farber () cis upenn edu>
> Subject: Europe held back by phone charges
> Date: Fri, 18 Jun 1999 01:38:29 -0700
> X-Mailer: Microsoft Outlook 8.5, Build 4.71.2377.0
> Importance: Normal
>
> Europe held back by phone charges
> June 18, 1999
>
> The Scotsman via NewsEdge Corporation : EVIDENCE is mounting that Europeans are
> finally learning to love the internet, but doubts persist. New research shows
> that more Europeans than ever either have a personal computer linked to the
> net, or plan to log on in the next few years.
>
> Traditional barriers to internet access, such as high phone charges, are being
> eroded as liberalisation takes hold, specialists say and Europeans will soon be
> as adept as Americans, buying cars and stocks, booking holidays, banking and
> downloading software at the click of a computer mouse.
>
> But some say that although progress is being made, it is painfully slow and
> that a range of obstructions are inhibiting European internet use, including
> the charge that a European culture of envy is behind high taxation and
> crippling regulation. This will cramp potential European entrepreneurs and
> ensure them a permanent role as second-raters to the Americans.
>
> "We need to change Europe's culture, where creating wealth is attacked as an
> activity that is somehow anti-social. If I succeed in the United States and
> come home in a Ferrari, people will gather around and admire it and
> congratulate me. In Europe, they will mutter about greed and vandalise it if I
> don't put it in a garage at night," said Marco Landi, president of Britain's
> BMC Software.
>
> He was addressing an electronic commerce conference organised this month by the
> US hi-tech researcher IDC entitled "What's wrong with Europe?". IDC told the
> conference that its evidence pointed to a powerful rally by Europe in the race
> to match the United States. "The US-centric internet is history. We see Europe
> as big as the US in 2003," said IDC president, Roberto Masiero.
>
> He said the US dominated e-commerce last year. In 1998, about half the 150
> million internet surfers were in the US, while Europe accounted for about 25
> per cent. "By 2003, worldwide internet users will hit 500 million and Europe
> will account for about a third of that," Masiero said.
>
> The British researcher Inteco says 37 per cent of US households were internet
> users in 1998, compared with 8 per cent of Europeans. Inteco believes that 23
> per cent of European households will be online in four years, some way behind
> the projected US figure of 58 per cent in 2003.
>
> Kurt Bertone, chief technology officer of Nortel Networks Europe, says there is
> great potential for growth in Europe, but many handicaps must be overcome
> first. "If you have a great internet idea and you get $10 million to invest and
> you say to a US venture capital guy: 'I'm going to build the business in some
> country in Europe', he'll say: 'Why did you do that?'
>
> "In the US, there is a tremendous talent pool, labour law is very favourable to
> start-up companies, taxes are low on salaries and stocks, profits, social
> security and that stuff is all really low." He said things were changing in
> some European countries, such as the UK and Israel - " where you can do
> start-ups". He added that telecommunications deregulation was also spurring
> internet use in Europe.
>
> But that's not quite how Laurence Blackall, chief executive of the Internet
> Technology Group, sees it. Asked what he would do to help Europeans exploit the
> net, he said: "I'd take out all those (phone) regulators and I'd shoot 'em.
> Those monopolists at Deutsche Telekom, France Telecom and BT have solidified
> their positions in the marketplace because of weak and ineffective regulators."
> In a recent report, Jupiter Communications Europe warned that "there is a
> misperception that the European internet market is simply one or two years
> behind the US. Telephone usage is metered and that alone will continue to hold
> back the growth of online advertising, content and commerce ventures in
> Europe."
> <<The Scotsman -- 06-15-99>>
> [Copyright 1999, The McCarthy Files (Financial Times)]
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