INTERNET
Irish Web use to remain stagnant: expert
02-05-2003
by John Cradden
The number of Irish people using the Internet is unlikely to be affected by broadband and flat-rate Internet access, according to an expert.
Bettina McCarvill, a senior consultant with research firm Amarach Consulting, told ElectricNews.Net that the introduction of consumer broadband services or the arrival of 24/7 flat-rate Internet access was not likely to result in big increases in the numbers of Irish people going on-line.
"The cost of going on-line is not a base deterrent," she said. "Its more likely just a lack of interest, a feeling that isn't relevant to them or are not familiar with the Internet." She said that numbers of new people going on-line were likely to steadily rise in any event.
Last year, it was estimated 38 percent of adults had Internet access, or about 1,065,000 people, which was an increase of 5 percent on 2001 figures. Amarach forecasts that an additional 5 percent of Irish adults will go on-line within the next 12 months, rising to nearly 50 percent by mid-2004.
In international terms, Internet penetration in Ireland is similar to that of the UK, but lags someway behind the US where Internet usage is more than 60 percent.
Consumer on-line spending in Ireland, however, is set to grow by almost one third in 2003, according to Amarach. The firm forecasts that EUR320 million will be spent on on-line purchases this year. An estimated 188,000 internet users made an on-line purchase in the last three months of 2002, spending an average of 328 on their purchases. Amarach estimated that, based on this figure, the total amount spent by Irish consumers on-line in 2002 was EUR250 million.
Travel services, specifically airline tickets, continue to account for the bulk of on-line purchases, while books, CDs and tickets for events also continue to be big on-line sellers.
Not having a credit card continues to be the main barrier to on-line shopping, particularly among younger Internet users and security concerns remain a major barrier.
McCarvill says that in the past, many teenagers would use their parents' credit cards to buy on-line, but now, banks are becoming more open to letting younger people have credit cards than they were a few years ago, particularly as young people are the keenest buyers of popular products bought on-line like concert tickets or cheap air flights.
According to Amarach, 34 percent of all adults aged 15 to 74 have a credit card. Among the 18-24 age bracket, the figure is 18 percent.
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