Int. J. Electronic Business, Vol. 1, No. 1, 2003
23
International web development: a detailed analysis by
regions
Erach N. Deboo, George L. Robb and
David C. Yen*
Department of Decision Sciences and Management Information
Systems, Miami University, Oxford, Ohio 45056, USA
E-mail: debooen@hotmail.com
E-mail: robbgl@muohio.edu
E-mail: yendc@muohio.edu
*corresponding author
Abstract: The global internet market has grown very rapidly in the past decade
and continues to bring global communities closer together. Its development and
deployment has occurred differently in all parts of the globe reflecting the
developed, developing and underdeveloped economies of the world. The three
largest global regions from an economic perspective are North America, Asia,
and Europe. These regions also represent the largest group of internet users in
the world. The internet provides the basis for the global exchange of products,
services and ideas. The use of the internet can be used for both good and evil as
witnessed by the events leading up to September 11, 2001, when terrorists used
the internet for easy communication and information retrieval. Undoubtedly,
an adjustment period to assure secure and proper use of the internet will occur
after which time or in conjunction therewith, the internet’s growth and
continued use will expand. The internet’s development can be described as
being adopted in one of three stages: acquisition of web literacy, web use as an
information medium and finally, web use for the purchase of products and
services. This paper examines the development of the internet in seven major
regions of the world, namely, North America, South America, Africa, Europe,
Middle East, Asia and Oceania. For each region this study examines the current
status of web development, trends in web development and market penetration,
regional responsibilities for web development, relative concentration of the
web development effort, and finally, timing, constraints and limitations on web
development. All of these items are shown to be important factors impacting
internet growth and development. Though the USA currently leads in internet
development, it is entirely possible that the USA may fall behind as Japan and
Europe more quickly develop wireless internet access – the next growth engine
of the internet.
Keywords: Business to Business (B2B); Business to Consumers (B2C);
Information Technology (IT); internet; global web development; web analysis;
web design; World Wide Web (WWW).
Reference to this paper should be made as follows: Deboo, E.N., Robb, G.L.
and Yen, D.C. (2003) ‘International web development: a detailed analysis by
regions’, Int. J. Electronic Business, Vol. 1, No. 1, pp.23-40.
Biographical notes: Erach Deboo graduated in August 2001 from the School
of Business Administration at Miami University in Oxford, Ohio. Erach
majored in both Management Information Systems and Marketing. He is
currently the Network Administrator for Kimball Midwest in Columbus, Ohio.
Copyright © 2003 Inderscience Enterprises Ltd.
24
E.N. Deboo, G.L. Robb and D.C. Yen
He dedicates this paper to his parents for their continuing encouragement and
support of his endeavours.
George Robb is a visiting instructor for the Department of Decision Sciences
and Management Information Systems at Miami University – Oxford, Ohio and
currently teaches courses in Management Information Systems. He has taught
introductory classes in Marketing and Organization Behaviour at the University
of Cincinnati, as well as Intro to Quantitative Analysis for the MBA program at
Xavier University. He has served as the Chairman for the Cincinnati/Dayton
Chapter of the Institute for Management Sciences (currently INFORMS). His
current research interests are focused on networks and databases applications
and their implementation.
David C. Yen is a professor of MIS and chair of the Department of Decision
Sciences and Management Information Systems at Miami University. He
received a PhD in MIS and Master of Sciences in Computer Science from the
University of Nebraska. Professor Yen is active in research, he has published
two books and over 150 articles which have appeared in Communications of
the ACM, Information & Management, International Journal of Information
Management, Journal of Computer Information Systems, Interface, Telematics
and Informatics, Internet Research among others. He was also one of the
co-recipients for a number of grants such as the Cleveland Foundation
(1987-1988), GE Foundation (1989), and Microsoft Foundation (1996-1997).
1
Introduction
The internet is a global medium that transcends international boundaries. Although the
World Wide Web (WWW) brings the world closer; its development, its relative market
penetration, and the behaviours of internet users vary greatly country-by-country and
region-by-region. In the Information Technology (IT) industry, the term ‘web
development’ means the design, construction and enhancement of websites for display
via the internet. To the global community outside the IT industry, the web represents a
great deal more. The web is a portal to another world, a virtual world where internet users
have no need to leave the solitude of their homes or comforts of their offices to enjoy this
new medium and search for information or purchase goods and services.
With the advent of internet e-commerce, consumer and business purchase
transactions via the web are now a reality. Consumers can conveniently pay bills online
and bank online to transfer funds from one account to another. Further advancements in
technologies, such as wireless internet access technology will enhance web development
and continue the rapid growth of the internet, while at the same time bringing cultures, or
more specifically the world, closer together. The opportunities the web provides appear
endless, and web developers will continue to probe the web’s business generating
opportunities.
Issues that will be discussed in this paper include the current status of global web
development, various global technical standards, regulations and internet user patterns as
well as the future outlook for web development for a particular continent or region. This
paper presents a summary overview by global region and then an inter-regional
comparison of current web development that shows similarities and differences in terms
of the current statuses, future trends in improving web utilisation, regional
International web development: a detailed analysis by regions
25
responsibilities for web development, relative concentration of web efforts, and related
constraints and/or limitations. This paper also presents a summary inter-regional
comparison. Finally, a conclusion is developed that describes the future implications of
global web development for both consumers and businesses.
2
International web development: an overview
The first section of this study develops a summary overview of global web development
in the six major geographical regions of the world: North America, South America,
Africa, Europe, Middle East, Asia and Oceania. This section of this paper discusses the
current status, the similarities, and the differences of global web development, and the
relationship of global internet users and usage of specific websites.
2.1 Current status of global web development
The USA is the dominant leader of nations connected to the web with Japan in second
place with approximately a 160 million fewer users. The United Kingdom, Canada, and
Germany follow Japan to round out the top five [1]. Just over a quarter of European
households have internet access via a home PC, compared to one third of the households
in Asia and nearly half of the households in the USA. Compared with last year’s data, a
significant number of more households in Europe and Asia now have a PC in the home
and a greater proportion of homes are making use of the home PC to connect to the
internet. Wireless internet access is dominant in Japan and is a growing portion of the
European method of internet access. However, it must be noted that at least one out of
every three or four urban areas of China, India, Russia and the rest of the developing
world has yet to use the internet. This is indicative of the internet’s global potential for
future growth.
2.2 Similarities in global web development and internet use
Three similarities are common across all internet markets around the globe. Firstly, every
web user in various regions follows the model of three stages of consumer web
development. These three stages include:
1
acquisition of web literacy
2
web use as an information medium
3
web use for purchasing goods and services.
Secondly, as the number of users of the internet grows, so does the increasing need for
more advanced internet capabilities such as increased bandwidth, sophisticated website
development, better e-commerce applications, and reliable online marketing activities.
Thirdly, the sale of goods and services over the web will ultimately result in true
globalisation of retail e-commerce as products are no longer restrained by borders and
physical barriers but are able to reach millions of consumers worldwide. As a result, the
three similarities can be summarised as having similar stages of consumer web
26
E.N. Deboo, G.L. Robb and D.C. Yen
development, an increasing need for advanced web manipulation capabilities, and an
appearance of global internet marketing activities.
2.3 Differences in global web development and internet use
A major difference in web usage across different regions is the levels of Business-toBusiness (B2B) and Business-to-Consumers (B2C) e-commerce activity. The USA leads
all nations in both categories by a substantial margin. US B2B e-commerce activity was
around 67% of the global total in 2000, compared to 14% for the entire European
continent. The numbers are very similar for global B2C with the USA’s activity at 76%
of the global total and Europe’s share of this total is once again at 14% [2]. The USA is
the only nation whose B2C e-commerce activity is larger than its B2B e-commerce
activity. Outside the USA, B2B is sometimes the only form of e-commerce in a country.
This gap will close as ownership of PCs at home increases, as the number of PC’s in
places of work increases and as wireless internet access increases.
2.4 Relationship of global internet users to specific websites
Many web domains, most of which are in the USA, have done very well globally and are
visited by millions of unique visitors daily. Below is a list of the top 15 web domains in
the world and the number of unique users who have visited the sites (see Table 1).
Table 1
Top 15 global web and digital media properties March 2001
Rank
Website
Unique Visitors (000)
% Global Users
Reached
1
Microsoft Sites
119,024
64.8
2
3
AOL Time Warner Network
Yahoo!
104,907
104,025
57.1
56.6
4
5
Lycos
Excite Network
61,675
39,482
33.6
21.5
6
7
About The Human Internet
Napster Digital*
36,091
27,516
19.6
15.0
8
9
10
Walt Disney Internet Group
Infospace Impressions
CNET Networks
27,456
27,106
26,353
14.9
14.8
14.3
11
12
NBC Internet Sites
AltaVista Network
26,165
25,527
14.2
13.9
13
14
Amazon
eBay
24,702
22,625
13.4
12.3
15
FortuneCity Network
TOTAL:
21,334
693,948
11.6
Source: Jupiter Media Metrix, March 2001
International web development: a detailed analysis by regions
27
As can be seen, the top 15 sites have US domains. Most of these, especially those in the
top 10, are also among the top ten domains when categorised by county or global region.
Outside the USA, local sites are on the rise and there is usually a local site for each of the
individual countries that are in the top ten with the dominant domains representing the
USA. It must be noted that users may visit multiple domains, such as one unique user
visiting both the Microsoft and Yahoo sites.
3
A regional comparison of web development
This portion of the study examines international web development for each of the six
major geographical regions of the world, namely, North America, South America, Africa,
Europe, Middle East, Asia and Oceania. For each region this study examines the current
status of web development, trends in web development and market penetration, regional
responsibilities for web development, relative concentration of the web development
effort and finally, timing, constraints and limitations on web development. This section
concludes with a matrix that arrays, compares and contrasts each of these aforementioned
topics on a global basis.
3.1 North America (excluding Mexico)
3.1.1 Current status of web development
In North America (USA and Canada) there are approximately 151.5 million internet users
and this internet user population is forecast to grow by 10% per year through 2005 [3].
North America accounts for some 60% of the world’s internet users and the USA is
expected to continue as the leader of web development. It should be noted that as global
internet usage increases, North America’s percentage of the total global internet users
will begin to decrease. Although this percentage share of total world internet users will
decline, North America is expected to retain its significant technological lead over the
rest of the world. Currently, most North American internet users access the internet via a
PC because of its early adoption and development as a multimedia platform. North
Americans enjoy a rich multimedia internet environment to a greater extent than the rest
of the world, and as a result, global or regional market demand for more limited wireless
internet access option has not yet emerged. Hence, the development and rollout of global
technology supporting wireless internet access has not proceeded nor has the adoption of
global wireless standards. Currently, there are several wireless regional standards like
CDMA (Code Division Multiple access) and GMS (Global system for Mobile
Communications). In general, there is a global agreement on the new third generation –
3G standard know as UMTS (Universal Mobile Telephone System) that achieves a speed
of up to 2Mbps, but its implementation has been delayed by the global economic
slowdown and the ‘War on Terrorism’. These delays are currently seen as temporary
lasting between 12 to 18 months although it might be somewhat longer.
Nevertheless, the USA continues to keep a sharp eye on the wireless internet market
in Japan since it was wildly successful in its initial two-year growth period.
AT&T Wireless plus others are regularly monitoring 3G developments in Japan [4].
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E.N. Deboo, G.L. Robb and D.C. Yen
3.1.2 Trends in web development and market penetration
More affordable PCs and cheaper access fees to the internet have combined to fuel the
rapid development and market penetration of the web in North America. With over 50%
of the population online in the USA alone, there is an enormous potential for successful
e-business ventures, which extends the possible uses for the internet. As a result of web
development technologies, the consumer online retailing segment of the internet is
forecast to nearly double from $33 billion in 2000 to $61 billion by the end of 2001 [5].
At the present time business fundamentals are impacting the B2C sector and stabilisation
and redirection of this sector is expected to return in the second quarter of 2002.
3.1.3 Regional responsibilities for web development
Responsibility for the development of the web lies in the hands of the individual and
corporate users, who are active and daily users of the internet. ISPs (Internet Service
Providers) will also have a continuing need to provide state-of-the-art web services for
clients and search out new uses for the internet. Regulation of the web, although very
loose, is in the hands of the US and Canadian governments. As more and more business
is conducted over the internet, the regulation of the web will also increase, possibly
leading to the taxation of certain web activities by federal, state, provincial and local
governments.
3.1.4 Relative concentration of web development effort
The near term web development efforts are focused primarily on e-business. This is very
important because an increasing number of businesses are beginning to do business
online. To exemplify how large e-business, B2B and B2C will become, it is forecast that
by the end of 2003, e-commerce in North America will reach $3.0 trillion, while the rest
of the world will reach $1.8 trillion [5].
Another area of focus is the development of a wireless internet access. Wireless web
devices are already the dominant internet access method in Japan and are being
popularised in Europe. North America is currently refocusing its dependence on the
CDMA wireless standard by including a move towards GMS. If North America does not
move quickly enough towards adopting a wider and more global set of standards, it could
lag behind Asia and Europe in developing the future growth engine of the internet and
web development – wireless internet access.
3.1.5 Timing, constraints and limitations on web development
There are some factors that are limiting the growth of the web in North America. Some of
these include the lack of a solid wireless internet access network infrastructure. Another
possible limitation is that the web is nearing the end of the rapid growth stage in North
America, especially in the USA where internet access has reached more than half of the
entire population.
The War on Terrorism will dramatically increase defensive, security minded and
intelligence-gathering investments in the internet. These investments will include the
wireless web option for more rapid and secure telecommunications. The USA intends to
remain the leader of the internet, and will quickly establish the secure infrastructure and
standards for the internet of the future.
International web development: a detailed analysis by regions
29
3.2 South America (including Mexico)
3.2.1 Current status of web development
Although South America may not be as large as other regions in terms of the number of
internet users, it is the fastest growing in terms of PC purchase rates. For example, the
region led the world in PC sales during the third quarter of 2000, with PC purchases
increasing 37% over the same period in 1999 [6]. Brazil, Mexico, and Argentina together
account for approximately 65% of the region’s 9.9 million internet users, with Brazil
having 3.9 million, followed by Mexico with 1.5 million, and Argentina with 1 million.
3.2.2 Trends in web development and market penetration
South American e-commerce has been slow to adapt as a result of internet user concerns
over privacy. Most internet users are still in the second stage of consumer web
development, that is using the web as an information medium, and do not feel
comfortable revealing credit card information online. Marketers cited e-commerce as one
of their main online goals for the region, but currently few businesses have been
successful. However, it’s only a matter of time before global companies begin to develop
the e-commerce market and generate significant B2B and B2C revenues in South
America.
3.2.3 Regional responsibilities for web development
Government deregulation throughout South America has also made the region more
attractive as a market for foreign investors. The increasing number of foreign companies
operating in South America will likely impact both consumers and businesses. US based
IT companies, such as Hewlett Packard, Microsoft, Dell, and AOL have each built South
American headquarters to take advantage of this emerging region [7]. Their arrival in the
South American market will facilitate greater internet utilisation, as well as provide
regional South American companies with the necessary software and hardware to offer
their key products and services to global consumers and other businesses.
3.2.4 Relative concentration of web development effort
The region’s web utilisation is no longer just at work or in school. The web frenzy has
now spread into homes, libraries, and even cyber-cafes. E-mail and instant messaging are
currently the popular uses for South America’s web users. E-mail, for example, has
reached market penetration levels of 80% in Brazil and Argentina [7]. Also growing in
popularity, are chat rooms and the downloading of music, which has gained notoriety
outside South America as a result of web services such as those provided by Napster,
Audiogalaxy, etc. In terms of gender profiling the region’s internet users, 60% of web
users are male [7]. Moreover, the users are typically younger (18–35) and represent the
first generation for whom computers became commonplace at their inception in South
America.
When the regional e-commerce sector begins to grow, most of the focus will centre
on business-to-business transactions, and spread to consumer transactions as users
become more confident about privacy and security on the web.
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E.N. Deboo, G.L. Robb and D.C. Yen
3.2.5 Timing, constraints and limitations on web development
The high costs of hardware and wired internet access have combined with the region’s
poor communications infrastructure to divide internet user by social class, with the upper
class using the internet the most.
Industry analysts expect that in the coming months, corporations throughout South
America will turn their IT investments towards e-business, especially B2B commerce.
This expectation is driven by last year’s regional investments in Customer Relationship
Management systems and other related infrastructure technologies. This pattern of
investment and development was observed most recently in the USA followed by a rapid
growth in US e-business spending [6].
3.3 Africa
3.3.1 Current status of web development
Africa is a tech-poor continent that has a difficult time linking its remote communities to
the rest of the world, but change is coming slowly, one village at a time. Good things are
happening on the internet, even outside the highly developed nation of South Africa. Last
December, WorldCom and Africa’s leading ISP, Africa Online, signed an agreement to
develop internet use in 14 countries. Africa Online has been doing its part to bring the
internet to Africa by providing 607 ‘e-touch’ centres located around the continent [8]. It
is important to keep in mind that the internet is still in the introduction stage in Africa and
will take some time before internet use begins to grow rapidly.
3.3.2 Trends in web development and market penetration
The trend in Africa, at least for now, is to establish a network of solar powered
community multimedia centres, which have had a high level of success in Niger and Sri
Lanka where the program began. The project aims to develop community radio
‘browsing’, and then add on the capability to download from the web, and where
possible, engage in two-way traffic online, and finally, broadcasting via the internet. In
time, each radio station becomes a mini-ISP, offering direct internet access to the locals.
Currently, there are 8 media centres and all but one are in small villages and have a
transmission range 9.3 to 24.9 miles [8]. The final goal is to create a connected network
with 150 multimedia centres.
The demand for these media centres is very high. As soon as one village gets a centre,
there is immediate pressure from the surrounding villages to get their own. There is also
pressure to provide those villages, with a better media centre and a more powerful
transmitter so it can reach more people. However, establishing more centres, rather
than upgrading the current media centres, is a higher priority on Africa’s agenda. The
short-term goal for now is to get people ready for the first stage of consumer web
development: web literacy.
3.3.3 Regional responsibilities for web development
Currently, the responsibility for the development of the web is in the hands of the leading
African ISP provider, Africa Online, and the governments of the African nations. The
governments along with Africa Online need to coordinate their efforts in order to increase
International web development: a detailed analysis by regions
31
the literacy and the penetration level of the web. This may well become an International
priority in the coming decade as agencies seek to deal with regional economic, social
concerns and specific global health issues like AIDS, Ebola and the like.
3.3.4 Relative concentration of web development effort
For the time being, the web development effort in Africa should continue to focus on
educating consumers about the internet and the possibilities it can provide. This is an
important step because most users are still in the first stage of consumer web
development: web literacy. Also, focusing more effort on younger people will increase
market penetration levels due to the fact that they are more easily influenced by
technology and interested in the internet.
3.3.5 Timing, constraints and limitations on web development
Although the community media centres are a step in the right direction, there are still
some large hurdles to overcome. More than 60% of the people in Africa live in rural
communities, moreover, the illiteracy rate is extremely high. Generally, there is no
electricity, no phones, and many have never even seen a television, much less a
computer. Put simply, there is a serious lack of infrastructure and computing knowledge
on the continent. There is no easy way of connecting the rural population to the internet.
To exemplify how great the digital divide is on this continent compared to the rest of the
world, there are currently more internet users in New York City than in all of Africa [9].
Looking more specifically at a specific nation in Africa, like South Africa, it is
evident that the continent desires to be connected to the internet, however the lack of a
communication infrastructure and economic limitations must be overcome before any
substantial growth in web usage and development will be observed. Of Africa’s 750
million people, South Africa accounts for the vast majority of the Africa’s 2.58 million
internet users. The penetration rate within South Africa is only 6% of its total population,
which is low when compared to similar developed nations. The opportunity for African
development remains available but is currently constrained.
3.4 Europe
3.4.1 Current status of web development
Europe’s top three countries in terms of internet users are the UK with 13.7 million,
followed by Germany with 11.9 million, and finally, France with 7.8 million [10].
Internet user growth is skyrocketing from a base of 95 million users in 2000 and
according to e-marketer it is forecast to grow to 246 million in 2005. European growth
has been spurred by notable successes in the USA, by the emergence of web stocks in
European public markets, and by a consensus opinion that Europe is the next global
market development opportunity for the web [11]. Most major European cities currently
appear as if they are outfitted for the next big dot-com revolution. It is as if Silicon
Valley ‘moved’ to another continent.
Not only are more people logging on to the internet every month, but they are also
spending additional time online each month. In Europe’s biggest internet markets, the
UK, Germany, and France the total monthly time online has increased by 94% in the UK,
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E.N. Deboo, G.L. Robb and D.C. Yen
226% in Germany, and 225% in France, over an eight month period between June 2000
and February 2001 [12].
3.4.2 Trends in web development and market penetration
Europe is sharing the USA’s online obsession and is experiencing many of the same
growing pains in this technological boom. However, the continent lacks sufficient
venture capitalists and has a smaller and less mature web oriented consumer base [11]. At
the same time, Europe is developing wireless internet access supported in large part by
existing or future wireless communications systems. Today European wireless internet
access accounts for only 9.6% of internet users but it will become the norm in Europe by
2005, growing to 67% of internet users. This represents a substantial shift away from the
currently preferred PC based internet access by European internet users. By obtaining
more global venture capitalists and properly educating continental businesses and
consumers on the advantages of the internet, Europe is projected to experience a rapid
period of web development and expansion.
3.4.3 Regional responsibilities for web development
Currently, technologically advanced digital phones provide easy access to the internet via
wireless communication networks throughout Europe. Europe is racing to route the
internet through mobile phones. If it steals the mobile internet market, Europe could
leapfrog the USA in e-business [13]. Within a few years, more Europeans could be
searching the web from a mobile phone than a PC. Also, European use of the internet at
home has just now surpassed internet use at work. However, for many Europeans, the
internet is still a medium for sourcing information, rather than for purchasing products
online. They collect information online but return to the traditional bricks-and-mortar
store to purchase the product.
3.4.4 Relative concentration of web development effort
The internet and information technology is unevenly developed throughout Europe. The
Nordic countries, Sweden, Finland, Norway, and Denmark, are early technology adopters
with high PC, mobile phone, and internet usage rates while some counties are laggards
like Greece and Portugal, making the European market difficult to exploit [13]. In
addition, businesses find it difficult to navigate through burdensome and conflicting
regulations. European businesses and foreign investors face many obstacles including:
complex regional regulations, higher taxes, a diverse consumer base, and national and
regional economic differences [13].
B2B e-commerce is gaining ground fast in Europe. This is a result of the new
common currency and reduced impacts of cultural and language issues on business that
have traditionally overwhelmed consumers [13].
3.4.5 Timing, constraints and limitations on web development
Most of Europe’s users are in the second stage of web development, using the web as a
source for information. As a result, Europe is lagging behind the USA in terms of internet
adoption, and e-commerce activity. Business leaders are more conservative when
implementing new technologies and have less access to venture capital. There are many
International web development: a detailed analysis by regions
33
other factors contributing to Europe’s slow penetration of the internet, which include
higher connection and telephone charges and the lack of a single, homogenous market
[11]. These factors combine to place European web development about two years behind
the USA. Given these factors, web development in Europe will evolve in a way that
accounts for regional variations rather than simply following the USA model.
3.5 Middle East
3.5.1 Current status of web development
It is estimated that there are currently 4.3 million users in the Middle East. Although
internet use in the Middle East is not growing as fast as other regions, the number of
internet users is expected to double to around eight million by the end of 2002 [14]. This
growth is a result of purchase demand for personal computers, which is one of the highest
in the world. The demand for PCs is expected to reach 1.8 million units by the end of
2001, which is up nearly 30% compared to the previous year. The growth in PC purchase
patterns can also be attributed to a double-digit growth in gross domestic product for
some countries and moves to cut or eliminate import taxes on personal computers in
others [14].
3.5.2 Trends in web development and market penetration
Apart from South America, the Middle East has the fastest growing PC purchase rate.
This rapid growth rate has led to the use of e-commerce, mainly B2B, for a variety
of transactions. It is estimated that e-commerce will grow from $100 million in 2000 to
more than $1 billion by the end of 2002, an astonishing increase in a span of two
years [15].
3.5.3 Regional responsibilities for web development
As with many other regions of the world, the development of the web lies in the hands of
several bodies. These include such institutions as private corporations, who will seek out
new ways to improve e-business techniques, leading to the further development of the
web. Internet users will also encourage improvements in the web as the number of users
accessing the internet and the amount of time spent online increases. The ISPs will
continue to be responsible for providing access to those who desire to be connected.
Finally, the governments of the region will be responsible for regulation and taxation of
the web where deemed necessary.
3.5.4 Relative concentration of web development effort
Current internet access rates are low, but even conservative estimates expect the number
to rise to 30 million by 2005. More importantly in the region, 14% of internet users are in
countries where e-banking is an option. This is a relatively high percentage of internet
users with e-banking exposure compared to 17% in the USA [16].
Today, just 18 of the top 100 local and regional banks are offering online
transactions, but demand will rise rapidly as internet usage in the region grows. With a
number of Middle Eastern states joining the World Trade Organization (WTO), banks
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E.N. Deboo, G.L. Robb and D.C. Yen
will need to be larger and better capitalised to face global competition from major
international competitors. Government and private sector leaders in the Middle East are
also calling for better banking services, fewer restrictions on cross-border banking
transactions and improved information technology, all of which demands advanced web
development and improved technology [16].
3.5.5 Timing, constraints and limitations on web development
The limitations on web development in the Middle East are a result of a few major issues.
The largest issue is a lack of an infrastructure capable of providing access to millions of
users, many of whom live in remote areas. As advancements are made in wireless
communications, wireless internet access will eventually become the most popular way
to use the internet due to existing infrastructure barriers. Another issue that is limiting the
development of the web is the low market penetration in terms of the number of internet
users. The region has a large population, however, currently there are only 4.3 million
internet users in the area, with a total regional population of roughly 180 million. This is
a mere 2.3% of the region’s total population and indicates the region has future web
development potential.
3.6 Asia
3.6.1 Current status of web development
The Asian continent will experience explosive growth in its number of internet users in
the next four years. According to a new study from the Yankee Group, the number of
internet users in the region will leap from 98 million users in 2001 to 192 million in 2005
[17]. This growth rate is impressive, but the total number of users is about a 3% of the
total population. The affordability of the internet remains a regional concern. For
example, India has roughly 1 billion people and a middle class that is estimated at
between 250 million to 300 million people. Most of the remainder of the country is poor
– with no water, electricity or food. The internet is not in their near future [17].
Nevertheless a large market potential exists within the region for those that can afford
internet access.
3.6.2 Trends in web development and market penetration
Besides the huge population base in the region, the primary drivers for increased internet
usage are deregulation and cheaper bandwidth charges. In addition, the increased
awareness and usage of the internet in the region are also responsible for an increasing
demand for greater bandwidth. As a result of the decreasing price of bandwidth, ISPs can
acquire bandwidth at lower prices, and can pass this savings on to the consumer. In
theory, lower prices would mean more people would be able to subscribe to internet
services, which will in turn lead to increased web development [17].
3.6.3 Regional responsibilities for web development
The further development of the web is now the responsibility of the corporate users,
personal users, the ISPs, and the governing bodies. Internet users will demand better and
faster service, which the ISPs must provide or risk losing customers. It is an endless cycle
International web development: a detailed analysis by regions
35
that results in the further advancement of the web and continuing technology
improvements. With the current high level of wireless internet access in the region, as
exemplified by the 82% of internet users in Japan, telecommunication providers will also
play an important role in the future of web development in Asia.
3.6.4 Relative concentration of web development effort
The current focus should be on two major issues. One issue is increasing the internet
penetration rate as a percentage of the region’s total population. With more potential
users than in any other region, the development of the web will intensify as more users
begin to access the internet. The second area of concentration should be the further
development of e-business in the region. As mentioned, the potential is enormous as a
result of the region’s population. To give an example of Asia’s overall potential,
estimates suggest that e-commerce revenues will skyrocket in the next few years, from
just under $40 billion at the end of last year to $338 billion by year-end 2004 [18].
3.6.5 Timing, constraints and limitations on web development
One inhibitor to the growth of the internet is a low PC ownership rate, especially in India
and China, the two countries with the largest populations. This is important, because
most of Asia, with the exception of Japan, has the potential to be a PC-based internet for
the foreseeable future. However, rapid development and deployment of inexpensive 3G
Wireless internet access in the region could accelerate web growth and may be sustained
for the foreseeable future.
Regional content censorship is another significant impediment to internet growth,
especially in China, where strict regulations govern web development [19].
3.7 Oceania
3.7.1 Current status of web development
Oceania’s capable infrastructure, high PC ownership and usage rates, availability of
skilled resources, and support from regional governments for e-commerce development
enhances the speed of regional web development. This has led to the region’s 9.8 million
internet users, which includes 6.8 million users in Australia, 2 million in Singapore, and 1
million in the remaining countries in the region.
3.7.2 Trends in web development and market penetration
Oceania’s internet companies are establishing themselves in the still recovering Asian
economies that were impacted by the Asian financial crisis. During this period of time,
the operations for Australian internet companies have been more stable and the
Singaporean and Taiwanese economies are now healthier than they were prior to the
advent of the Asian financial crisis. As internet activity across the region continues to
grow and web development opportunities are bound to follow.
36
E.N. Deboo, G.L. Robb and D.C. Yen
3.7.3 Regional responsibilities for web development
Recently, the Singapore Government’s telecommunications authority, Infocomm
Development Authority of Singapore (IDA), awarded a facilities-based operator licence
(FBO) to Telstra, Australia’s largest telecommunications company, expanding the
region’s web market and development efforts. The FBO licence allows Telstra to connect
to its own cable capacity in Singapore and to provide wholesale bandwidth and data
services to a wide range of carriers, service providers and ISPs [20]. The new licence will
also enable Telstra to develop its operation as a regional gateway to the internet in
Southeast Asia by direct bandwidth connectivity to neighbouring countries including
Malaysia, Indonesia and Thailand.
Responsibility for web development will continue to remain in the hands of the ISP’s,
telecommunication providers, governments, and businesses that want to see web use
grow and flourish in the region.
3.7.4 Relative concentration of web development effort
E-commerce in this region is still lagging behind North America and Europe, but this
region has established several other unique uses for the web. Internet users extensively
access the web for audio and video services, with more than three times as many people
engaging in audio and video usage than Europeans. Singapore leads the way in AOL
Instant Messaging, with more than 62% of users using Instant Messenger.
3.7.5 Timing, constraints and limitations on web development
Current network carrying arrangements have made the cost incurred by Oceania’s ISP’s
higher because the ISP’s have to bear the cost of carrying US generated traffic on their
network, which is extremely costly since 70% of the network traffic in the region is
outbound to the USA. This increases the cost of hosting content/applications in Oceania
and consequently the cost to end users connecting to the internet. Moreover, regional
internet users normally pay the same price regardless of whether they use the internet to
communicate domestically or internationally [21].
Several listed Australian and Singaporean internet companies have made
announcements regarding expansion into Asia. The companies have the ambition to tap
into what will soon be a 200 million internet user market in Asia [20].
4
A comparison by different regions
The Inter-Regional Comparison Matrix seen in Table 2 summarises the previous section
of this study based on the reported criteria, namely, Current Status of Web Development,
Trends in Web Development and Market Penetration, Regional Responsibilities for Web
Development, Relative Concentration of Web Development Effort, and finally, Timing,
Constraints and Limitations on Web Development. The matrix allows for easy
comparison of the separate regions for each of these parameters on a global basis.
International web development: a detailed analysis by regions
Table 2
North
America
An inter-regional comparison matrix
Current Status of
Web Development
Trends in
Development
& Market
Penetration
Regional
Responsibility for
Web Development
Concentration of
Web Development
Effort
Timing,
Constraints
and
Limitations
on Web
Development
- USA and Canada
account for 60% of
worlds internet
population
- Decreasing
price of PC’s
and internet
access
- Large corporate
ISP’s provide
internet access
- Young
generations, such
as X & Y primary
internet users
- US global web
development leader
- Slow to
adopt wireless
web access
- Slowing
economy is
limiting
technological
innovation
- Web development
in late growth stage
South
America
- Business/consumer
drives usage patterns
- Telecommunication
companies foster
growth
- Fast growing
PC purchase
rate
- Governments
regulate web
development
- Brazil, Mexico,
and Argentina
leading countries
- E-commerce
slow to adopt
due to privacy
concerns
- ISP’s provide
access and services
- Tech-poor
continent
- Difficult to link
rural communities
- Internet
development in
introductory stage
Europe
- High speed
access
provides
continued
internet usage
growth
- Loosely regulated
by government
agencies
- Fastest growing
region in terms of
PC purchase rate
- Internet
development in
early growth stage
Africa
37
- UK, Germany,
France leading
users
- Web development
in growth stage
- 3rd largest user
population
- Government
incentive
programs
- Government
deregulation creates
attractive market
- Evolving to a
wide age range of
users
- Growing
e-business base
B2B and B2C
- Adopting new
wireless access
standards
- Cyber-cafés
popular
- E-mail and chat
rooms
- Younger
generation
primary users
- Information
search dominant
use
- Network of
8 solar
powered
multimedia
centres
- Governments
regulate and fund
development projects
with ISP providers
(Africa Online)
- Educating
consumers about
the internet
- Goal of
developing
150 connected
centres
- Businesses
- Younger
generation will
use web most
- Wireless
access will be
norm in a few
years
- ISP provide access
- ISP’s now
competing with
wireless companies
- Next web boom
in Nordic
countries
- Developed
wireless
network
infrastructure
- Governments
regulate, provide
program funds
- Increase web
literacy
- B-to-B
e-commerce
growing rapidly
- Younger users
- Nearing end
of rapid
growth stage
- Lack strong
wireless web
user base
- Large gap
between
social classes
- High cost of
hardware and
connections
- Limited
growth of
e-commerce
- 60% of
continent
lives in rural
areas
- Poor
infrastructure
- Lack of
necessary
hardware
- Regulation
varies
- Business
across borders
difficult
- High access
and telephone
charges
38
E.N. Deboo, G.L. Robb and D.C. Yen
Table 2
Middle
East
An inter-regional comparison matrix (continued)
Current Status of
Web Development
Trends in
Development &
Market
Penetration
Regional
Responsibility for
Web Development
Concentration of
Web Development
Effort
Timing,
Constraints
and
Limitations
on Web
Development
- 4.3 million users
in region
- Second fasted
PC purchase
rates
- Government
responsible for
development and
regulation
- Countries with
high GDP and
stable economy
- Regulations
differ across
borders
- Younger, male
users
- Poor
infrastructure
- Lack of
government
programs to
facilitate web
growth
- Users will
double by 2002
- Internet
development in
growth stage
- Double-digit
GDP growth in
some countries
- Development
of B-to-B
e-commerce
- Governments
provide financial
support to help
growth
- Information
searching
- ISP’s provide
access
- Constantly
at war
Asia
- 98 million users
- 36% yearly
increase
- 2nd largest user
population
- web
development in
growth stage
Oceania
- 9.8 million
internet users
- Australia and
Singapore leading
nations
- Web
development in
growth stage
5
- B-to-C
e-commerce
growing over
100% per year
- Large
companies lead
e-business
- Regulated and
funded by
government
- Younger
generations
- ISPs provided
access and web
services
- Information
searching,
financial
brokerage, travel
- Lack of
resources
- Wireless
network
development
- Content
control
- E-business
- Network
carrying
charges
- Business/Consumer
- Deregulation
(minimal)
- Asian
financial crisis
over
- Regulated and
funded by
government
- Businesses
expanding into
Asia
- Telecommunication
companies and ISP’s
- E-commerce
development
- Usage and
access rates
increasing
- Business/consumer
- Male dominated
- Entertainment
usage
(audio/video
downloading)
- Instant
messaging
- Poor
infrastructure
in rural areas
- Strict
regulations
- Limited
local site
development
- Still
recovering
from Asian
financial
crisis
Conclusion
Looking into the future of the web and its development, it is evident that the next growth
stage will emerge from wireless internet access that is growing in popularity in Europe
and is already the primary internet access method used in Japan. The global shift to
wireless internet access may be led by Japan, followed by Europe and finally the USA. In
general, the global mobile internet market can be thought of as three distinct markets,
namely, mobile operator driven – Japan, internet driven – the USA, and technology
driven – Finland [22]. Each of these of markets will develop in their own unique manner.
International web development: a detailed analysis by regions
39
Currently, the USA is using a different wireless internet access standard than either
Europe or Japan. On the brighter side Cingular, SBC and ATT wireless in the USA have
recently announced plans to adopt the GMS standard that will add new near term
opportunities for rapid growth in the global internet wireless market [23]. Both
Handspring [24], a US manufacturer, and Nokia [25], a European manufacturer, have
announced development of hybrid devices for the mobile internet market and will begin
marketing them in the fourth quarter of 2001. Both of these mobile phones with wireless
internet access support the GMS standard. As the wireless access standard (GSM)
becomes more globally uniform, internet development will again begin to grow rapidly,
opening up more opportunities for the use of the web as a global medium that transcends
international boundaries.
In the longer term, the global third generation (3G) wireless internet access standard
has been identified, however, the global economic slowdown combined with the ‘War on
Terrorism’ will delay rollout of the 3G standards and related technologies by 12 to 18
months. This represents a delay in implementation rather than a missed opportunity and
the future development of the internet indeed seems bright.
Nokia has announced that it will open up part of its 3G software in order to more
rapidly develop the wireless internet market [26]. DoCoMo has decided to implement its
3G service in Japan within the fourth quarter 2001 and invest $10 billion in developing
the market over the next decade [27]. Theses are very positive developments indicating a
robust growth period for the growth of the wireless internet.
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