Asian internet users may soar by 40 percent in five years

["Irfan Khan" <KhanIA@super.net.pk>]

Asian internet users may soar by 40 percent in five years

SEOUL (July 23) : The number of Asian Internet users is expected to 
soar by 40 percent a year to hit 64 million in 2003, generating 
billions of dollars in e-commerce and advertising revenue, research 
seen Thursday showed.

US investment bank Goldman Sachs said in a report that electronic 
commerce revenues in the region would generate 32 billion dollars 
while Internet advertising would grow into a 1.5 billion dollar 
business by 2001.

"At the end of 1998 there were 15 million Internet users in Asia but 
this market is expected to grow by a compound annual rate of 40 
percent during the next five years to total 64 million by 2003," the 
report said.

The expected growth rate -- which will more than quadruple the number 
of web surfers in Asia from the current level -- will be twice as 
much as that in he giant US market, it said.

By 2003, China, South Korea, India and Australia will boast 70 
percent of Internet users in the booming Asia Pacific market, with e--
commerce exploding by 145 percent a year from its 1998 level of $ 700 
million.

Asia's Internet companies are expected to grow through a series of 
successful share offerings which look set to turn the region into a 
global Internet hub, the global investment giant said in its Asia Web 
report.

It suggested investor could ride the lucrative Internet wave in Asia 
by injecting funds into regional telecommunications firms such as 
South Korea's SK Telecom and Korea Telecom.

In addition, they could invest in firms with "imbedded Internet 
assets" such as Singapore Press Holdings and Hong Kong's Wharf 
Holdings, and also through dedicated Internet providers such as 
eCorp, China. com and Pacific Internet.

"Asia's Internet scene lags behind that of the US by about two to 
three years, but the gap is narrowing rapidly," Goldman's Rajeev 
Gupta said in an extract of the report seen here.

"Given that local content is developing and US companies are seeking 
local alliances, the Internet scene in Asia is becoming both real and 
highly lucrative," he added.

But the investment expert warned that valuations of Internet 
companies were tricky.

While the market capitalisation price to sales ration was the single 
most important benchmark, other variables such as discounted cash 
flow and discounted future earnings also had to be taken into 
account.--AFP

Copyright 1999 AFP (Published under arrangement with Associated Press 
of Pakistan)

http://www.brecorder.com/story/S0010/S1002/S1002110.htm