The report--commissioned by Cisco to establish the state of the Internet Economy in Australia--found that Internet-related business spending is currently AU$28 billion (US$14.2 billion) a year, or four percent of the country’s gross domestic product (GDP).
The United States’ Internet Economy during 1999 was estimated to be US$524 billion, or 5.6 percent of GDP.
The Allen Consulting Group study estimated that Australia’s Internet Economy revenue would grow to AU$49 billion (US$24.9billion) per year by 2003-04.
According to Cisco Australia and New Zealand managing director, Terry Walsh, the report shows that Australian industry is willingly adopting Internet solutions to improve its competitive position.
“This proves that the Internet is critical to conducting business in Australia,” he said.
The study also revealed that:
--all major industries were participating in the Internet growth, across all geographic regions.
--the communications industry is at the forefront of the Internet Economy
--Internet Economy firms were 50 percent more productive per worker than offline companies
--one fifth of small business estimated that overall revenue would increase by 20 percent in the next three years as a result of using the Internet
--62 percent of firms estimated that the Internet provides them with cost savings. A tenth of those said the savings were 15 percent or higher