Asiaone 1-42

BUSINESS
The increase in transmission bandwidth through higher speed Internet connections and wider adoption
of advanced content delivery technologies for the Internet and other multimedia enabling technologies
will increase the functionality of advertising and will make the Internet an even more attractive
advertising medium. Technological developments may result in a greater ability to provide information
and analysis about the effectiveness of Internet advertising. The demographic profiles of users and
the ability of advertisers to frequently modify and more closely tailor their messages should result in
more targeted, higher impact advertising opportunities and greater integration of web-based advertising
into the range of marketing channels available to advertisers.
Internet transactions are expected to increase as online transaction processing technology improves,
consumers become more accustomed to purchasing online and fulfilment systems become more
reliable.
Asia Internet Growth Opportunities
In Asia where the economies are largely export dependent and investment has priority over
consumption, businesses accelerate their e-business initiatives at an even faster rate. Consequently,
e-business is taking off rapidly in Asia. Further the Internet is also becoming widely accepted as a
platform for buyers and sellers of goods and services to interact and complete transactions.
The recent economic downturn in the Asia-Pacific region has not significantly slowed the rate of
Internet penetration in the Asia-Pacific markets, as consumers and corporate customers have
discovered that Internet applications, such as e-mail and website advertising, represent lower cost
substitutes for comparable non-Internet products and services. On the contrary, the recent volatility
in the Asia-Pacific financial markets has increased the demand for reliable, around-the-clock news
and information on local, regional and global events, which is often readily available through the
Internet.
We believe that the Asian region should register substantial growth in Internet usage for a number of
reasons:
(i) rising income level;
(ii) pent-up demand for appropriately priced communications;
(iii) greater local content focusing on cultural demands;
(iv) growing number and value of other Internet applications;
(v) falling personal computer prices;
(vi) modernisation and expansion of the telecommunication infrastructures;
(vii) supportive government policies; and
(viii) proliferation of other access devices and technologies such as televisions, mobile phones and
personal digital assistants.
IDC, in its biannual update of Internet user forecasts and the revenue generated online for 13 Asia-
Pacific countries in 1999, predicted that the compound annual growth rate of Internet users from
Asia-Pacific (excluding Japan) for 1997-2003 would be 56%. IDC forecasts a boom in Asia-Pacific’s
user population with an increase in the number of Internet users reaching approximately 95.2 million
by end 2004, which is expected to generate online revenue of approximately US$87.5 billion.
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