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Project iCON


Market Overview and Key Statistics: Project iCON

Key Statistics

1. Internet Cafés

  • The Internet café market is forecast to grow at 24.5% per year to 630 outlets and 15,400 Internet terminals by 2002
  • The number of Internet café visitors is expected to rise from 21.8 million visitors per year to 42.2 million visitors by 2002
  • The market will see an increasing trend to chain operators such as EasyEverything and Internet Exchange, while other major UK retailers begin to offer Internet access to their customers
  • The largest Internet café chain, EasyEverything, currently attracts more visitors per week than the Millennium Dome
  • Allegra Strategies' study revealed a number of surprising user profiles, indicating that Internet cafés address the needs of a market much broader than previously thought.

2.Internet Kiosks

  • Internet kiosks and multimedia (web) payphones are expected to become a major feature in many popular UK venues including pubs, airports, train stations and busy shopping centres
  • The total number of UK Internet kiosk terminals is expected to rise to more than 23,000 units by 2002
  • The number of UK Internet kiosk visits is forecast to reach 240 million annually by December 2002
  • Internet kiosks will offer a number of features including web access, email, video-conferencing, games and music downloads
  • E-commerce, advertising and entertainment revenues will account for a substantial portion of profits
  • Despite the small installed base and the current low level of usage and awareness of kiosks, a high percentage of UK consumers mentioned that they would like to see more Internet kiosks in busy locations 

3.Mobile Internet (WAP and 3G Mobile)

  • The UK mobile Internet market is expected to explode in the next few years with the number of active mobile Internet users forecast to reach 44.5 million subscribers by December 2005, accounting for approximately 80.3% of total mobile subscriptions
  • By 2002, the number of active UK mobile Internet subscribers will already have reached 18.5 million
  • Consumer awareness of the mobile Internet is extremely high. More than 90% of current UK Internet users already know that it is possible to access the Internet through a mobile phone
  • Almost half of UK mobile phone owners surveyed intend to upgrade to WAP handsets within the next 12 months
  • Consumers view the mobile as a useful and exciting way to access information and services 'on-the-move'. The mobile phone is rated as the second best device to access the Internet on-the-move (30.7% of respondents). However, a number of factors were seen as limiting the quality and richness of the mobile Internet experience
  • According to consumers and industry experts, email is currently the 'killer application' for the mobile Internet but a number of other popular services were mentioned including: - Mobile Internet banking - News and location services - Traffic and location services - Fun, gimmick services such as games, music and entertainment 
  • The cost of airtime and cost of replacing the handsets were seen as the biggest factors limiting UK consumer use of the mobile Internet
  • A surprisingly high proportion of consumers mentioned that they would be willing to receive advertising on their mobile phone in exchange for cheaper calls
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