/ 30 March 2006

Internet growth is cooling, study shows

Growth in the use of the internet has come off its sizzling pace, even as people become more dependent on cyberspace for work and leisure, a global survey showed on Wednesday.

Ipsos Insight’s annual Face of the Web study showed the global online population grew just 5% last year, well behind the 20% growth rate seen in 2004.

The survey of 6 500 people in 12 major countries by the research firm suggested growth will be slow in 2006 as well.

Still, the survey indicates people are using the internet for a broad variety of activities and using newer devices such as wireless computers and cellphones for internet access.

”We think the results in 2005 really prove that measuring growth of the internet in the coming years will be less about user volume and more about consumers’ reliance on this medium as a way of life,” said Ipsos senior vice-president Brian Cruikshank.

”Whether it is checking RSS [news] feeds, blogging or picking up a podcast or yesterday’s sitcom, consumers continue to expand and apply new depth of internet use that we haven’t seen before.”

A major driver of global internet use last year was Japan, which now accounts for roughly 75-million users, Ipsos found.

Japan also remains the world’s number-one internet-based economy, with 89% of respondents using the internet at least once a month.

France witnessed the most significant year-on-year gains in internet adoption among the 12 global markets tracked in the study — and more than 60% of French adults use the internet regularly, representing more than a 12-point increase from 2004.

Growth is cooling in North America, specifically in the United States and Canada, where prevalence of regular internet usage was essentially flat in 2005 at 71% and 72%, respectively. Still, both of these markets remain important players in the evolving global internet economy, says Cruikshank.

”Despite marginal increases in internet user growth within North America, this region is leading the charge in wireless internet use on a PC as well as awareness and usage of Wi-Fi internet connectivity,” he said. ”These are key indicators that North Americans are turning the corner in mass and becoming more technically sophisticated internet users.”

The survey found voice-over-internet protocol telephony is rising steadily in France, Germany and Britain, indicating these nations may be emerging as the early adopter markets for this internet technology.

In East Asia, the urban China market is quickly evolving into one of the most dynamic internet-based economies in the world, with among the heaviest internet usage of any of the countries measured at 17,9 hours per week online.

Ipsos surveyed adults in urban Brazil, Canada, urban China, France, Germany, urban India, Japan, urban Mexico, urban Russia, South Korea, Britain and the US. — Sapa-AFP