FACTS & STATS

NEED FOR INCREASED BANDWIDTH

• Internet users wasted an estimated 2.5 billion hours in 1998 waiting for web pages to download. (NUA, Oct. 1999).

• Internet traffic will consume 90% of the available bandwidth by 2003. (Nicholas Lippis, Oct. 1999).

• The average file transfer from the Web is now 60KB, rendering traditional dial-up service increasingly inadequate. (Cyberatlas/Communications Industry Researchers, July 1999).

• E-commerce merchants may lose up to $4.35 billion in sales each year if Web sites do not maintain an average download time of eight seconds, effectively a potential monthly loss in excess of $362 million. (Zona Research, June 1999).

• 1 million Americans had broadband connections as of Oct. 1998. (NUA/Forrester Research, Oct. 1998).

• 16 million Americans will have high speed Internet access as of 2002. (NUA/Forrester Research, Oct. 1998).

• 33% of U.S. households will have broadband high-speed access by 2003. (NUA/IDC Oct. 1999).

• 31.7 million households will have signed up for Internet access at speeds near or above 1.5 Mbps by 2003, up from its current total of approximately 1.6 million. (Cyberatlas/Communications Industry Researchers, July 1999).

• 63% of online U.S. households will continue to connect to the Internet via analog modems by 2003. (NUA/Gartner Group, Oct. 1999).

• DSL: Worldwide shipment of DSL is expected to grow from 350,000 units in 1998 to 9.8 million units by 2003. (Cuberatlas/Gartner Group, Oct. 1999).

• DSL: There will be 1.3 million active DSL lines by the end of 1999. (ZDNet/In-Stat, Nov. 1999).

• DSL: 9.3 million U.S. households will have DSL lines by 2003, up from 50,000 in 1998, (220% cumulative average growth rate). (emarketer/IDC, Dec. 1999).

• DSL: 31% of the 4,850 ISPs in the United States claim to offer high-speed services based on DSL. (ZDNet/In-Stat, Nov. 1999).

• CABLE: Worldwide shipment of cable modems is expected to grow from 2.5 million in 1999 to 24.3 million by 2004. (Cyberatlas/Computer Economics, 1999).

• CABLE: By 2006, 39 million households will access high speed Internet over cable lines, while 25 million households will have DSL. (NUA/Kagan Associates, Apr. 1998).

• WIRELESS: Wireless broadband revenues will grow from $11.2 million in 1999 to $3.4 billion in 2003. (Strategis Group, Dec. 1999).

• WIRELESS: By 2003, no less than 34% of U.S. households and 45% of U.S. businesses will be serviceable by broadband wireless networks. (Strategis Group, Dec. 1999).

• SATELLITE: The market for satellite-delivered Internet access is doubling every six months and should reach $1.8-$2.4 billion worldwide by 2002. (Emarketer, Aug. 1998)

COST OF BROADBAND ACCESS

• CABLE: The price of cable modems is expected to drop from $215 per modem in 1999 to $50 per modem in 2004. (Computer Economics, 1999).

• CABLE: The average monthly service fees for broadband access over cable lines is expected to fall to $24 by 2004. (Computer Economics, 1999).

Digital Democracy

• INTERNET VOTING: 2/3rds of Americans would like the option to cast their vote over the Internet. (ActivMedia's FutureScapes study, Oct. 1998).

• INTERNET VOTING (UNREGISTERED): 6 out of 10 Americans who are not registered to vote said they would prefer to cast their ballots online (Wall Street Journal/NBC, Dec. 1999).

• INTERNET VOTING (AGE 18-24): 2/3rds of those 18-24 would prefer voting online. (Wall Street Journal/NBC, Dec. 1999).

• INTERNET VOTING (AGE 35-49): 61% of those 35-49 would prefer voting online. (Wall Street Journal/NBC, Dec. 1999).

• ONLINE INFORMATION: More than twice as many voters have sought information about political candidates online in 1999 as did in 1996. (Democracy Online Project, Oct. 1999).

• CAMPAIGNS ONLINE: Three-quarters of people asked find the information about candidates and campaigns on the Internet to be accurate. (Democracy Online Project, Oct. 1999).

• CAMPAIGNS ONLINE: 2/3rds of people asked trust the information they find about candidates and campaigns. (Democracy Online Project, Oct. 1999).

• LIBRARY OF CONGRESS ONLINE: The Library of Congress averages over 10 million web hits per month. (Library of Congress, Dec. 1999).

• U.S. CONGRESS ONLINE: All 100 Senators and 432 out of 435 Members of the House of Representatives maintain public web pages.

• PARLIAMENT ONLINE: British Parliament will be first in the world to relay parliamentary debates live over the Internet. (Sunday Times, Jun. 1999).

• AFRICAN POLITICS: Both Nigerian presidential candidates offered campaign Web sites even though only 1,000 Nigerian households have Internet access. (NUA/ Africa News, Feb. 1999).

PUBLIC DISCLOSURE

• 35 state disclosure agency web sites provide some kind of campaign finance disclosure information. (California Voter Foundation, Dec. 1999).

• 31 states have appropriated funding for disclosure agencies specifically to fund digital disclosure efforts. (California Voter Foundation, Dec. 1999).

• Public Disclosure Inc.’s web site – offering information on political candidate financing and campaign expenditures -- is getting 14,000 to 17,000 hits a day. (Associated Press, Nov. 26, 1999).

COMPUTERS

• BASELINE 1998: At the end of 1998, 50% of U.S. households owned a PC, compared to 43% in 1997, 36% in 1996, and just 27% in 1995. (Dataquest, Feb. 1999).
• BASELINE 1999: Nearly two-thirds of U.S. adults own a PC and, for 71% of those, it is their first or second PC. (U.S. News & World Report, 1999).

• African American household spending on computer hardware increased 400% from 1997 to 1998, while white household spending increased just 6%. (Target Market Media, Oct. 1999).

INTERNET ACCESS

• ISP CHOICES: 78% of Americans live in counties with 4 or more choices of Internet service, 14.5% have only 1-3 ISP choices, and only 7.5% have no service located within their county. (U.S. Internet Council, Apr. 1999).

• FREE ACCESS: Number of U.S. Internet users with free ISP accounts is expected to grow to 13 million by 2003, almost 13% of the entire ISP consumer market. (Jupiter Communications, Dec. 1999).

• INCOME-BASED DISTINCTIONS: 13.9% of U.S. households with incomes of under $35,000 were online (1997-1998), while 49% with incomes of $75,000 or more were online. (U.S. Dept. of Commerce, Dec. 1998).

• Education and income are not major determinants of whether a household will have an online connection once a computer is in the home. (Annenberg National Survey on the Internet and the Family, May 1999).

• RACE-BASED DISTINCTIONS: By the end of 1999, a roughly equivalent percentage of Black, Hispanic and White Americans will be online (40-44%), along with 68% of Asian Americans. (Forrester Research, "The Digital Melting Pot," Mar. 1999).

• Internet access for African Americans is expected to climb from 23% (early 1999) to 40% by 2000. (U.S. Internet Council/Forrester Research, Apr. 1999).

• 28% of African-Americans are online, as compared to 37% of the total adult population in the U.S. (Cyber Dialogue, Dec. 1999).

• Internet access for Hispanic Americans is expected to climb from 36% (early 1999) to 43% by 2000. (U.S. Internet Council citing Forrester Research, Apr. 1999).

• 28% of Hispanic Americans are online, as compared to 37% of the total adult population in the US use the Internet. (Cyber Dialogue, Dec. 1999).

• 64% of Asian-American homes are linked to the Internet, twice the U.S. national average figure. (LATimes/Forrester Research, Dec. 1999).

• Internet access for Asian Americans is expected to climb from 64% (early 1999) to 68% in 2000. (U.S. Internet Council/Forrester Research, Apr. 1999).

• E-Commerce grew 127% from Q1 1998 to Q1 1999. (Internet Indicators, Oct. 1999).

• By 2003, 80% of all business transactions will be carried out online and $2 million will change hands every minute. (NUA/IDC Oct. 1999).

• More than 56 million people reported shopping online in the first three months of 1999. (Intelliquest, 1999).

• 56% of U.S. companies will sell their products online by 2000, up from 24% in 1998. (NUA/Duke Business School, 1999).

• 7 million consumers will make their first online purchase this year. (NUA/Forrester Research, Sept. 1999).

• 27 million households will be online shoppers by the end of this season. (NFO Interactive, Oct. 1999).

• 30% of Americans aged 14+ will make online purchases by 2002, compared with 17.8% in 1999 and 7.9% in 1998. (eMarketer, 1999).

• 42% of people regularly or occasionally make a purchase online (1999), up from 31% in 1998. (AOL/Roper Starch Cyberstudy, Nov. 1999).

• B2B 2003: $2.8 trillion -- one quarter of all business-to-business purchases -- will be made online by 2003. (Boston Consulting Group, Dec. 1999); business-to-business e-commerce will grow to $1.4 trillion by 2003, up from just under $250 billion in 1999. (Forrester Research, Oct. 1999).

• B2B 2004: Business-to-business e-commerce will be worth $1.5 trillion by 2004, up from $114 billion in 1999, will generate $39 billion in 1998. (Goldman Sachs, Sept. 1999).

• B2B SERVICES 2003: U.S. e-commerce services market to reach $64.8 billion by 2003. (Forrester Research, Nov. 1999).

• B2B PROCUREMENT: Web based business procurement doubles in volume every year, with a compound annual growth rate of 105%. (IDC Sept. 1999)

• B2B PROCUREMENT 2003: The online business procurement market (worth $147 million in 1998) will be worth $5 billion by 2003. (IDC Sept. 1999).

• B2C USA 1999: 1999 Revenue predictions for U.S. business-to-consumer e-commerce range from $36 billion (Boston Consulting Group) to $3.9 billion (Direct Marketing Association). (eMarketer Comparison, Chart of Predictions, 1999).

• B2C 2003: Worldwide business-to-consumer e-commerce revenue will surpass $380 billion by 2003, up from $31.2 billion in 1999 and $11.2 billion in 1998. (NUA/Dataquest, Oct. 1999).

• B2C 2004: 49 million U.S. households are predicted to spend $184 billion online by 2004. (NUA/Forrester Research, Sept. 1999).

• B2C 1999: The average online shopping household will spend $1,167 online in 1999, increasing to $3,738 by 2004. (NUA/Forrester Research, Sept. 1999).

• B2c NETWORKING: The home networking market generated $37.9 million in the first two quarters of 1999 alone, more than double the total for all of 1998 ($34.5 million). (Cyberatlas/Frost & Sullivan, Nov. 1999).

VARIETY of E-COMMERCE

• REAL ESTATE: 64% of Americans in the market for real estate shopped online using the Internet. 85% of real estate shoppers used the ‘Net for its convenience, 65% to save time, and 38% to take advantage of the vast selection available online. (NPD Research, June 1999).

• AUTOMOTIVE: 40% of U.S. consumers who recently purchased a car or truck used the Net to shop for the vehicle, compared to just 25% last year (JD Power & Associates, July 1999).

• AUTOMOTIVE: Almost three-quarters of 19,500 franchised car dealerships now have web sites, allowing customers to view and research vehicles, complete financial applications online and schedule service appointments. (eMarketer/ National Automobile Dealers Association, Dec. 1999).

• HEALTH/MEDICAL: 60 million Americans went online in search of health and medical information in 1998 – up from 18 million in 1997 -- and over 90% reported that they found the information they were looking for. (NUA/Louis Harris & Associates, Feb. 1999).

• TRAVEL: 33.8 million Americans used the Internet for general travel planning and 6.7 million made reservations online in 1998 – up from 11.7 million and 5.4 million (respectively) in 1997. (NUA/Travel Industry Association, Jan. 1999).

• BROKERAGE: 3.1 million U.S. households will have online brokerage accounts by the end of 1999, compared with 2.2 million at the end of 1998. (NUA/Forrester Research, Oct. 1999)

• PUBLIC SCHOOL ACCESS: Over 90% of U.S. public schools now have some sort of access to the Internet, someplace in their building. (CRITO Teaching, Learning & Computing 1998 Survey: Internet Use By Teachers, Feb. 1999).

• PRIVATE SCHOOL ACCESS: 80% of Catholic schools and 70% of private schools had Internet access by 1999. (Market Data Research, "Teachers Use of Technology Increases as the Internet Permeates Schools," June 1999).

• CLASSROOM ACCESS: Nearly 71% of public schools provided Internet access in some classrooms in 1999, up from 58% last year. (Market Data Research, "Teachers Use of Technology Increases as the Internet Permeates Schools," June 1999).

• CLASSROOM ACCESS: 39% of 4th - 12th grade teachers have some kind of Internet access in their own classrooms. (CRITO Teaching, Learning & Computing 1998 Survey: Internet Use By Teachers, Feb. 1999).

• While 57% of public schools had higher speed (broadband) connections, only 47% of the private schools had this service. (CRITO Teaching, Learning & Computing 1998 Survey: Computers in American Schools, June 1999).

• TYPE OF BROADBAND: 30% of schools have high-speed (T1) Internet connections, 27% have slower broadband connections (e.g. ISDN), 33% have narrow band connections and 10% had no connection at all. (CRITO Teaching, Learning & Computing 1998 Survey: Computers in American Schools, June 1999).

• JAPAN: Japanese Ministry of Posts & Telecommunications will provide high-speed Internet connections in 1050 schools to encourage students' use of the Net. (NUA/ Ministry of Posts and Telecommunications, Nov. 1999).

• JAPAN: Satellite communication lines are installed in 387 Japanese schools, followed by cable TV networks in 327 schools, wireless local loop networks in 160 schools, optical fiber connections in 100 schools and XDSL at 76 schools. (NUA/ Ministry of Posts and Telecommunications, Nov. 1999).

E-RATE PROGRAM

• The E-Rate program will provide $1.92 billion to schools in 2000, up from $1.7 billion in 1999. (SLD, Oct. 1999).

• The E-Rate program has connected over 1 million classrooms to the Internet. (FCC, Oct. 1999).

• The average e-rate distribution per student totaled $30.39. (Market Data Research, "Which States Were the E-Rate Winners?" June 1999).

• 71% of e-rate funds went to urban schools, 29% to rural schools. (FCC, Oct. 1999).

• 87% of Americans support providing discounts to needy schools and libraries. (EdLiNC, May 1999).

• 83% of Americans think that Internet access in schools and libraries will improve educational opportunities for all Americans. (EdLiNC, May 1999).

• For a state-by-state analysis of E-Rate funding see "Going For the E-Rate Gold," (Funds For Learning, 1999).

• U.S. 12^th graders ranked 19^th out of 21 nations in math, 16^th out of 21 in science. (Third International Math and Science Study, 1997).

• Total number of U.S. students earning high tech degrees dropped 5% (1990-1996) even as the total number of degrees awarded at U.S. schools increased 16%. (AEA CyberEducation, 1999).

• Foreign nationals earned 45% of the total doctoral degrees, 64% of doctorates in engineering technology, 46% of doctorates in computer science, and 45% of doctorates in math. (AEA CyberEducation, 1999).

• Number of U.S. students earning bachelors’ degrees in electrical engineering fell 33%, with computer & information science degrees falling 27% (1990-1996). (AEA CyberEducation, 1999).

• 2 out of 3 children who have access to a computer at home use it to help them do their homework. (NPD Online Research, Aug. 1999).

• In 1999, public schools reported a 5.7-to-1 student-to-instructional-use computer ratio, improving over 1998’s ratio of 6.3-to-1. (Market Data Research, "Teachers Use of Technology Increases as the Internet Permeates Schools," June 1999).

• In the 1998-1999 school year, public schools across the nation spent more than $5.5 billion on K-12 technology. (Market Data Research, Oct. 1999).

• Public schools spent an average of $119.22 per student on technology in 1998-1999. (Market Data Research, "Teachers Use of Technology Increases as the Internet Permeates Schools," June 1999).

• 69% of public school spending on technology went to hardware, 17% to software, and 14% to staff development. (Market Data Research, "Teachers Use of Technology Increases as the Internet Permeates Schools," June 1999).

• 61% of newly constructed schools installed fiber optics / cable lines, and 79% established local area networks. (Market Data Research, "America’s Classrooms Approach the New Millennium," June 1999).

• Higher education institutions in the U.S. will spend close to $5 billion on IT related and services by 2003, up from $3.1 billion in 1998. (NUA/IDC, Jul. 1999).

TEACHERS & TECHNOLOGY

• 60% of new teachers reporting being either "somewhat prepared" or "not at all prepared" to use technology in the classroom, as compared to 62% of experienced teachers. (Market Data Research, Oct. 1999).

• Majority of teachers recalled that technology proficiency was not required to obtain teaching certification (67%) or their first teaching position (83%). (Market Data Research, Oct. 1999).

• 54% of all public schools reported that the majority of their teachers use the Internet for instructional purposes in 1999, compared with only 33% in 1998. (Market Data Research, "Teachers Use of Technology Increases as the Internet Permeates Schools," June 1999).

• Almost 70% of public schools stated that the majority of their teachers use computers daily, compared to 47% in 1998. (Market Data Research, "Teachers Use of Technology Increases as the Internet Permeates Schools," June 1999).

• 59% of teachers have Internet access at home, but 27% have no access either at home or in their classroom. (CRITO Teaching, Learning & Computing 1998 Survey: Internet Use By Teachers, Feb. 1999).

• 68% of teachers use the Internet to find information resources for use in lessons, and 28% report doing this on a weekly basis or more often. (CRITO Teaching, Learning & Computing 1998 Survey: Internet Use By Teachers, Feb. 1999).

• Only 16% of teachers communicated by e-mail with teachers from other schools as often as five times during the school year. (CRITO Teaching, Learning & Computing 1998 Survey: Internet Use By Teachers, Feb. 1999).

• Only 18% of teachers posted information, suggestions, opinions, or student work on the World Wide Web as of Feb. 1999. (CRITO Teaching, Learning & Computing 1998 Survey: Internet Use By Teachers, Feb. 1999).

• 7% of teachers had students send e-mail at least 3 times during the school year, and even fewer involved students in cross-classroom collaborative projects or in Web publishing. (CRITO Teaching, Learning & Computing 1998 Survey: Internet Use By Teachers, Feb. 1999).

• 46% of all public schools reported that the majority of their teachers know how to use a variety of computer applications in the classroom, while 35% indicated the majority of teachers are beginners. (Market Data Research, "Teachers Use of Technology Increases as the Internet Permeates Schools," June 1999).

• 64% of public schools reported WAN connectivity in the 1998-1999 school year – (Wide Area Network connections to other schools and districts across a state) -- compared with 47% the prior year. (Market Data Research, "Teachers Use of Technology Increases as the Internet Permeates Schools," June 1999).

• 84% of public schools reported LAN connectivity in the 1998-1999 school year – (Local Area Network connections within a school) – compared with 47% the prior year. (Market Data Research, "Teachers Use of Technology Increases as the Internet Permeates Schools," June 1999).

• 87% of schools in low-poverty areas had local area network connections – computers linked within the school – versus 78% of schools in higher-poverty school districts. (Market Data Research, "Teachers Use of Technology Increases as the Internet Permeates Schools," June 1999).

Encryption

• Protecting corporate computer assets will be a $1.3 billion business in the next two years. (NUA/TechServer, Apr. 1999).

• The information protection business will be a $50 billion industry by 2005. (NUA/TechServer, Apr. 1999).

Globalization & Trade

• 72% of Web sites continue to be U.S. based, and 92% of e-commerce stems from U.S.-based sites. (NUA/Activmedia, June 1999).

• By 2003, the U.S. will account for roughly 50% of Internet-based commerce, compared with 75% in 1998. (Business Week/IDC, Oct. 4, 1999).

• 100 million Europeans will be shopping online by 2004. (Forrester Research, Dec. 1999).

• Europe will experience e-business growth rates of over 100% a year for the next three years. (Forrester Research, Dec. 1999).

• European e-commerce online will reach $1.61 trillion by 2004. (Forrester Research, Dec. 1999).

• Revenue from Internet sales in Europe will reach $2 trillion by 2002, up from $288 billion in 1999. (KMPG Consulting, Nov. 1999).

• 70% of the 2000 largest companies in the European Union will have developed their own virtual "storefronts" by 2002. (META Group’s Electronic Business Strategies Study, 1999).

• E-commerce activity will increase Australia’s GDP by 2.7% by the year 2007 (National Office for the Information Economy, Nov. 1999).

• Australian e-commerce will grow to $1.3 billion in 2002 from $61 million in 1997. (National Office for the Information Economy, Nov. 1999).

• Traffic volume on the Internet doubles every 100 days. (U.S. Dept. of Commerce, Apr. 1998).

• The U.S. Postal Service delivered 101 billion pieces of paper mail in 1998. Estimates for e-mail messages sent in 1998 range from 618 billion to 4 trillion. (U.S. Internet Council, Apr. 1999).

• The capacity of the Internet backbone to carry information is doubling every 100 days. (U.S. Internet Council, Apr. 1999).

• There are 12,844,877 million unique domain names (e.g. Cisco.com) registered worldwide, with 428,023 new domain names registered each week. (NetNames Statistics 12/28/1999).

• In July 1999 there were 56.2 million "host" computers supporting web pages. In July 1997 there were 19.5 million host computers, with 3.2 million hosts in July 1994, and a mere 80,000 in July 1989. (Internet Software Consortium – Internet Domain Survey).

• The Internet Economy has grown to $507 billion 1999 from $301.4 billion in 1998. (Internet Indicators, Oct. 1999).

• The Internet Economy will be worth $1 trillion in 2001, and $2.8 trillion by 2003. (NUA/IDC Research, Nov. 1999).

• The Internet Economy accounts for 2.3 million jobs. (Internet Indicators, Oct. 1999).

• IT industries accounted for 35% of U.S. real economic growth between 1995 and 1998. (U.S. Dept. of Commerce, July 1999).

• Internet companies added $1.4 billion to non-Internet advertising revenues by Q3 1999, up 291.3% from the same period last year (Cyberatlas/Competitive Media Reporting, Dec. 1999).

• IT’s share of the U.S. economy nearly doubled between 1977 and 1998, growing from 4.2% to 8.1%. (U.S. Dept. of Commerce, July 1999).

• RADIO: One out of every 12 U.S. radio stations is now broadcasting on the Internet, with more than 2,000 radio and TV stations online in early 1999. (U.S. Internet Council/Broadcast.com, Apr. 1999).

• MUSIC: Online music sales will grow to over $5 billion by 2005 (11% of total music sales) from $169.9 million in 1998 (0.4% of total music sales). (eMarketer/Market Tracking International, Nov. 1999).

• WORLDWIDE 2002: Conducting business online will save companies around the world an estimated $1.25 trillion by 2002, compared to total savings of $17.6 billion in savings in 1998. (Giga Information Group, Aug. 1999).

• USA 2002: Conducting business online will save U.S. companies $360 - $480 billion by 2002. (Giga Information Group, Aug. 1999).

• Cisco Systems saves over $800 million per year by putting key business applications on the web. Other examples of companies saving money by using the web can be found in the Department of Commerce 1998 report, "The Emerging Digital Economy."

• Projected savings from Internet commerce procurement will surpass $103 billion on transactions, totaling $1.375 trillion by 2003. (NUA/IDC Sept. 1999).

• The number of people using online commerce procurement applications will explode from 600,000 in 1999 to 250 million by 2003. (NUA/IDC Sept. 1999)

• BANKING: Savings in processing costs from online banking range from $19.3 billion to $46 billion.

• AUTOMOTIVE: Ford and General Motors expect to save $1 billion in the first 18 months online and $4-5 billion in the proceeding 5 years by moving their supply chain operations online. (Financial Times, Nov. 1999).

• AUTOMOTIVE: Volkswagen's Brazilian subsidiary estimates it saves $400 million a year with computer software linking the automaker's purchasing department and parts suppliers. (Journal of Commerce, Nov. 23, 1999)

• GOVERNMENT: British civil service could save up to one billion pounds (or around $1.7 billion) if it fully used electronic purchasing. (Britain's National Audit Office study, Oct. 1999).

• BOOK SELLING: Internet efficiencies allow online booksellers to charge just 5% gross margin while equaling the return on investment capital that brick-and-mortar booksellers can only achieve by charging 30% margins. (Business Week/Harvard Business School Assoc. Prof. Clayton M. Christensen, Jun. 28, 1999).

• INTERNET TRANSPORT: The cost of transferring data over the Internet should plummet from $80,000/terabyte in 1998, to $10,000/terabyte in 2002, and just $300/terabyte by 2003. (NUA/Datamonitor, Feb. 1999).

• COMPUTER PROCESSING: The cost of computer processing fell from $230.00/MIPS in 1991 to $3.42/MIPS in 1997. (U.S. Dept. of Commerce, Apr. 1998). (MIPS = millions of instructions per second).

• DEFLATIONARY IMPACT: Falling IT prices reduced overall inflation in the U.S. by 1.1% in 1997. (U.S. Dept. of Commerce, Apr. 1998).

• BROADBAND ACCESS: The average monthly service fees for broadband access over cable lines is expected to fall to $24 by 2004. (Computer Economics, 1999).

• INTERNET ACCESS: Number of U.S. Internet users with free ISP accounts is expected to grow to 13 million by 2003, almost 13% of the entire ISP consumer market. (Jupiter Communications, Dec. 1999).

• Online advertising spending is projected to hit $13.3 billion by 2003, up from $8.9 billion by 2002, up from $1.5 billion in 1998, to $2.61 billion in 1999. (eMarketer eStats, 1999).
• Spending on Web advertising in the U.S. will grow to $13.3 billion by 2003, up from $3.1 billion in 1999. (Cyberatlas/eMarketer, Dec. 1999).

• Online advertising increased 80% between the fourth quarter of 1998 and first quarter of 1999. (Intermedia Advertising Solutions, Oct. 1999).

• Internet advertising revenue hit $693 million for the first quarter of 1999, nearly doubling the $351 million that was recorded in the first quarter of 1998. (Internet Advertising Bureau, Aug. 1999).

• Banner ads accounted for 58% of all online ad revenue, sponsorships 29%, interstitials 6% e-mail 1%, with 6% miscellaneous. (Internet Advertising Bureau, Aug. 1999).

• 27% of advertising was consumer related, 21% was for financial services, 20% for the computer industry, 13% in retail and 8% for new media. (Internet Advertising Bureau, Aug. 1999).

• 43% of advertising campaigns were priced according to CPM, 6% were performance-based and 51% were hybrid. (Internet Advertising Bureau, Aug. 1999).

• Only 0.13% of the total number of Web sites (3.6 million) are supported by advertising. (eMarketer eStats, 1999).

• 37% of U.S. small businesses are now online, up from 19% in 1998 and 9% in 1997. (Prodigy.Com, Nov. 1999).

• 427,000 small businesses went online in the 12 months between Q1 1998 and Q1 1999. (NUA/Cyber Dialogue, 1999).

• The number of small businesses with a Web presence nearly doubled since 1998, and the coming years will see an even more dramatic increase. (CyberAtlas / International Communications Research, Nov. 1999).

• 40% of small businesses without web sites (approximately 2.1 million) plan to establish an Internet presence within the next eight months. (Prodigy.Com, Nov. 1999).

• 9 out of 10 small businesses believe the Internet will benefit their business. (Prodigy.Com, Nov. 1999).

• Online orders at small business Web sites jumped to $19 billion by Q1 1999, up from $11.4 billion as of Q1 1998. (Cyber Dialogue, 1999).

• Small businesses that use the Internet have grown 46% faster than those that do not. (American City Business Journals).

• Internet revenue will be $1.2 trillion by 2002, with the top ten Internet companies only accounting for 27% of that total figure. (UT Internet Indicators, Oct. 1999).

• $37,000 (the average budgeted investment for e-commerce Web site development in 1999 across all Web sites other than media / portal sites). Media & portal sites averaged $78,000 (ActivMedia Research, Nov. 1999).

• Business-to-consumer sites selling exclusively online spent an average of $68,000 on their site, and typical retail and business-to-business sites committed in the mid-$20,000 range. (ActivMedia Research, Nov. 1999).

• Online advertising only accounts for 1.83% of the average company's total advertising budget. (Intermedia Advertising Solutions, Oct. 1999).

• Commercial use of the Net by firms and organizations is doubling every year (The Delphi Group, Oct. 1999).

Internet & Environment

• The Internet is making the U.S. more energy-efficient, and increasing Internet usage may reduce emission of greenhouse gasses blamed for global warming. In both 1997 and 1998 the amount of energy consumed to produce one dollar dropped by 4%, the largest drop in 50 years. (Center for Energy & Climate Solutions, Dec. 1999).

• E-mail use will reduce the amount of paper used for envelopes by 1 million tons by 2003. (NUA/Boston Consulting Group, Sep. 1999).

• Internet publishing will reduce magazine’s use of paper by 1 million tons by 2003, cut catalogues’ use of paper by 12% and reduce paper consumption for books by 9.5%. (NUA/Boston Consulting Group, Sep. 1999).

Internet & Family

• HOMEWORK: 2 out of 3 children who have access to a computer at home use it to help them do their homework. (NPD Online Research, Aug. 1999).

• 63% of children aged between 9 and 17 prefer the Internet to television, and 55% prefer the Internet to the telephone for communicating. (NUA/Roper Starch, Nov. 1999).

• Typical American child spends 2 hours 45 minutes watching TV, 1 hour 27 minutes listening to music, and only 21 minutes on computers each day. (Kaiser Foundation, Nov. 1999).

• HOME NETWORKS: 10 million homes will be "digitally remodeled" to include home networking by 2003, up from 650,000 homes today. (Yankee Group, Oct. 1999).

• Home PC Usage surpassed 1 billion hours/week, and 53% of that time is spent online. (CyberAtlas, July 1999).

• 60% of households with children aged 8 to 17 have home computers, and 61% of those are connected to the Internet. (Annenberg National Survey on the Internet and the Family, May 1999).

• Among children 8 and older, 21% have computers in their bedroom while 65% have televisions in their bedroom. (Kaiser Foundation, Nov. 1999).

• ONLINE SPENDING: The average online shopping household will spend $1,167 online in 1999, increasing to $3,738 by 2004. (NUA/Forrester Research, Sept. 1999).

• FILTERING: 32% of parents with online connections use protective software that guards children’s access to inappropriate sites. (Annenberg National Survey on the Internet and the Family, May 1999).

• 70% of parents with computers in the home say the Internet is a place for children to discover "fascinating, useful things" and nearly 60% say that children who don’t have the Internet are disadvantaged compared to their peers who do. (Annenberg National Survey on the Internet and the Family, May 1999).

• Over 75% of parents are concerned that their children might give out personal information and view sexually explicit images on the Internet. (Annenberg National Survey on the Internet and the Family, May 1999).

• PAYING BILLS: By 2002, 25% of all U.S. households will have the ability to view and pay at least eight monthly bills online. (Cyberatlas/Internet Research Group, Nov. 1999).

• HEALTH CARE: 78% of U.S. Internet users with health insurance would like to manage their benefits online (check extent of coverage, status of claims, find doctor or hospital, file claims). (NUA/Cyber Dialogue, Sep. 1999).

Internet Privacy

• 93 of the 100 most heavily trafficked dot-com Internet sites posted privacy policies to help consumers in 1999, up from 71/100 in 1998. (Online Privacy Alliance Survey, June 1999).

• 65.9% of the most visited Web sites post some privacy notice in 1999 (based upon a random sampling of 361 of the top 7,500 sites), up from 14% in 1998. (Georgetown University Privacy Study, Jul. 1999).

• 2/3rds of people using the Internet believe online privacy should be market-regulated, rather than legislated, including nearly 60% of registered Democrats and more than 70% of Republicans. (@plan, Nov. 1999).

• 66.7% of online "window shoppers" state that assurances of privacy will be the basis for their making online purchases. 80% said deep discounts would inspire their first online transaction. (NFO Interactive Study, Online Retail Monitor: Branding, Segmentation & Web Sites, 10/1999).

• 86% of Internet users believe individuals should be able to make informed choices on whether or not to give personal information in exchange for free service or benefits; 12% see such voluntary exchanges as invasive of privacy (Privacy & American Business Survey, Feb. 1999).

• 87% of Internet users feel it is fair to collect information about consumer interests and preferences for statistical analysis of interest and buying trends among net users (Privacy & American Business Survey, Feb. 1999).

• 98.2% of the top Web sites collect at least one type of personal identifying information (e.g. name, e-mail, address, postal address); 75% collected at least one type of demographic information (e.g. gender, preferences, zip code). (NFO Interactive Study, Online Retail Monitor: Branding, Segmentation & Web Sites, 10/1999).

• When asked to name the most pressing privacy issue on the Internet, the most common responses were the sale of personal information (42%) and tracking people's use of the Web (32%). Complaints about junk e-mail (aka "Spam") (18%) sparked the next largest number of responses. (Center for Democracy & Technology Survey, 1998).

• 79% of Internet users feel it is fair for people receiving free service or benefits to agree that banner-type ads for products and services appear on their PC. (Privacy & American Business Survey, Feb. 1999).

• 59% of Internet users feel it is fair for people receiving free service or benefits to agree that their e-mail addresses can be provided to reputable companies, so they can send offers of products or services that reflect that person’s interests. (Privacy & American Business Survey, Feb. 1999).

• CONTENTS OF SPAM: 30.2% of all unsolicited email is pornographic, 29.6% consists of "get rich" offers, 23.5% of spam e-mail seeks to sell other products or services, 9.9% offers health products, and 3.3% offers entry into sweepstakes or gambling. (ChooseYourMail.Com, Summer 1999).

ECONOMIC IMPACT

• $170 million in tax not collected on Internet sales is just 0.1% of the total sales and use taxes collected by state and local governments in 1998 (Ernst &Young, June 1999).

• 60% of consumers say they would make fewer purchases if they had to pay a sales tax on all Internet purchases. (Cyberatlas/BizRate.com, Dec. 1999).

• From 1994 through 1998 state and local governments collected more than $74 billion in surplus revenue. (Ernst &Young, June 1999).

• From 1997 - 1998, state sales tax revenues grew by 5.6%, three times the rate of inflation, even as Internet sales reached $9 billion. (Ernst &Young, June 1999).

• While collecting $1 in taxes costs traditional retailers 7 cents, it could cost Internet retailers as much as 87 cents. (Ernst &Young, June 1999).

• Consumers spent $4.2 billion in stores in 1997 after first learning information about the products online. (Cyber Dialogue)

• 60% of tangible items purchased on the Internet would have been purchased tax free via mail order without the net. (Ernst &Young, June 1999).

• 80% of online sales are business-to-business, most of which are not subject to a tax whether online or not. (Ernst &Young, June 1999).

• $20 billion in business-to-consumer online sales is less than 0.3% of total consumer spending. (Ernst &Young, June 1999).

• Applying existing sales taxes to the Internet would slash the number of online purchases by 30% or more. (National Bureau of Economic Research, 1999).

PUBLIC OPINION

• 75% of online consumers would be less inclined to shop the Web if they were faced with paying taxes on purchases made there. (BizRate.com, 9/99).

• 44% of registered voters who are active Internet users would be less likely to vote for a political candidate who supports online taxes. (ITAA, Sept. 1999) (vs. 36% according to a Gallup/@plan poll, Sept. 1999).

• 67% of online Democrats and 80% of online Republicans oppose Internet taxes. (Gallup/@plan poll, Sep. 1999).

• 55% of online buyers are aware that Congress is evaluating the question of Internet taxation. (BizRate.com, Sept. 1999).

• # ONLINE 1999: 118.4 million Americans had access to the Internet and 74 million actually went online in November, 1999. (Cyberatlas/Nielsen Net Ratings, Dec. 1999).

• # ONLINE 1998: 84 million Americans used the Internet from either home or work as of the end of 1998 (42% of the U.S. adult population). (Stratis Group, Apr. 1999); 68 million Americans used the Internet in 1998. (Strategis Group, Nov. 1999).

• # ONLINE DAILY 1998: 37 million Americans were using the Internet from home on a daily basis by the end of 1998, compared with 19 million mid-1997. (Stratis Group, Apr. 1999)

• # ONLINE 1993: Only 90,000 Americans had Internet access in early 1993. (U.S. Internet Council, Apr. 1999).

• % ONLINE 2003: 62% of the population in the U.S. will be online in the U.S. by 2003, up from 28% in 1998, according to research from IDC (Oct. 1999).

• % ONLINE 2003: 2/3rds of U.S. households will have Internet Access by 2003. (Yankee Group, 1999).

• % ONLINE 2005: 91% of U.S. homes will be online by 2005, with 90% using a PC and 73% also having interactive TV or other Internet appliances. (Strategy Analytics, Dec. 1999).

• WEB HITS/DAY 1999: U.S. web pages averaged one billion hits per day in October 1999. (eMarketer/Media Metrix, Nov. 1999).

• E-MAIL 1998: The U.S. Postal Service delivered 101 billion pieces of paper mail in 1998. Estimates for e-mail messages sent in 1998 range from 618 billion to 4 trillion. (U.S. Internet Council, Apr. 1999).

• E-MAIL 1999: There are 270 million e-mailboxes in the U.S. -- roughly 2.5 per user. (eMarketer/ Messaging Online, Nov. 1999).

• HOURS ONLINE: Time on the Internet is projected to reach 192 hours per capita by 2003, up from 74 hours in 1998 and just 28 hours in 1997. (Veronis, Suhler & Associates, Nov. 1999).

• HOURS ONLINE: Americans watch an average of 1,610 hours per year of TV and listen to 992 hours of radio, compared with 1999 Internet usage predictions of from 74 hours per capita in 1998. (Veronis, Suhler & Associates, Nov. 1999).

• PENETRATION, U.S.: The Internet reached 30% of the U.S. population in 7 years, beating television (17 years), telephones (38 years), and electricity (46 years). (U.S. Internet Council, Apr. 1999).

• PENETRATION, CITIES: Five U.S. cities have reached 50% Internet penetration among their adult populations, including Washington DC, San Francisco, Austin, TX, Seattle/Tacoma, and Salt Lake City. (Scarborough Research, Oct. 1999).

• FREE ISPs: Free ISPs will be used by 13 million U.S. households by 2003 (13% of total online market), including by 8.8 million as primary Internet access. (Jupiter Communications, Dec. 1999).

• 54% of active U.S. Internet users are business users versus 46% who access the Web mainly for personal reasons. (eMarketer, 1999).

• # ONLINE WORLDWIDE 1998: 95.43 million people used the Internet in 1998. (eMarketer eStats 1999).

• # ONLINE 1999 BY COUNTRY: The U.S. leads all nations in Internet users online in 1999, with over 110 million, followed by Japan (18M), U.K. (13.9M), Canada (13.2M) and Germany (12.2M) (Computer Industry Almanac, Nov. 1999).

• # ONLINE WORLDWIDE 2002: Over 490 million people will use the Internet by year-end 2002 (79.4 per 1,000 people). (Computer Industry Almanac, Nov. 1999).

• # ONLINE WORLDWIDE 2005: Over 765 million people will use the Internet by year-end 2005 (118 per 1,000 people). (Computer Industry Almanac, Nov. 1999).

• E-MAIL 1999: There are 435 million electronic mailboxes worldwide, serving an estimated 200 million e-mail users worldwide (up 66% since Sept. ‘98). (eMarketer/ Messaging Online, Nov. 1999).

• HOURS ONLINE, BY COUNTRY: French users spent an average of 3 hours on the Internet in October 1999, British 4 hours, Germans about 5 hours and the average American home user stays on the Internet for about five and a half hours each month. (Excite, Dec. 1999).

• % ONLINE EUROPE 2003: Internet penetration in Europe will grow from 19% to 33% by 2003. (CyberAtlas/Forrester, Dec. 1999).

• # ONLINE EUROPE 2003: 43 million Europeans will have Internet access by 2003. (Datamonitor, Dec. 1998).

• % COMPUTERS EUROPE 2003: PC adoption across Europe will grow from 36% to more than 46% in 2003, surpassing the U.S. in some European nations. . (CyberAtlas/Forrester, Dec. 1999).

• % ONLINE EUROPE 1999: 1/5^th of Europeans use the Internet, according to a telephone survey of 2,000 consumers in 12 European countries. (Cybersc@n Oct., 1999).

• ONLINE SALES EUROPE 2003: Online consumer sales in Europe are expected to exceed $115 billion in 2003, up from $5.4 billion in 1999. (Dataquest, Oct. 1999).

• B2B EUROPE 2003: The European business-to-business market is estimated to increase to $176 billion by 2003, up from $7.15 billion in 1998. (Visa International, Aug. 1999).

• # ONLINE MOBILE: More than 219 million people, or one-third of the European population, will access Internet services using mobile phones by 2003. (Forrester Research, Dec. 1999).

• # ONLINE W. EUROPE 2004: Over 121 million adults will have Internet access by 2004 in Western Europe, up from 59 million in 2000 and 45 million in 1999. (Fletcher Research, Aug. 1999).

• % ONLINE C. EUROPE: Only 3% of Central Europeans own a PC and less than 1% of people in the Baltic States own a computer. (NUA/Anderson Consulting, Nov. 1999).

• Online advertising market in Western Europe will be worth more than $3 billion by 2004, with consumers spending more than $18 billion online. (Fletcher Research, Aug. 1999).

• % ONLINE U.K.: More than one-quarter of the adult residents in the UK have used the Internet in the past month. 27% of the users have shopped online, and 49% have used the Web to compare prices for goods and services. (Nielsen / CommerceNet, 1999).

• # ONLINE N. IRELAND 1999: 78,000 homes (13% of the population) have access to the Internet in Northern Ireland (Quest Research & Consulting, Dec. 1999).

• $ ONLINE U.K. 2004: Online consumer spending in the UK will grow over 1,100% between 1999 and 2004, from $943 million to $12 billion. (emarketer/ Verdict Research, Dec. 1999).

ASIA / PACIFIC

• Internet users in China and India will outnumber those in the U.S. by 2010 due to a combination of their high population density and their current investment in infrastructure. (Computer Industry Almanac, Nov. 1999).

• # ONLINE ASIA 2006: 370 million people will use the Internet in Asia by 2006, up from 43.6 million in 1999. (Phillips Group, Nov. 1999).

• # ONLINE ASIA 2003: Number of people online in Asia will have exploded by 600% to 90 million people by 2003. (Gartner Group, Dec. 1999).

• While Pacific Rim Asian nations accounted for 14.8% of Internet users at the end of 1998, they will account for 21.5% of users by the end of 2002. (eMarketer eStats, 1999).

• # ONLINE JAPAN 1999: 12.9 million people subscribe to online networked services in Japan (4.85 million from companies, 440,000 from government agencies and 2.53 million from educational institutions). (New Media Development Association, Nov. 1999).

• # ONLINE TAIWAN: 4.2 million Taiwanese are online in 1999, up from 360,000 users in 1996. The number of Internet users in Taiwan has grown by 50% every six months in the last three years. (Institute for Information Industries, Dec. 1999).

• # ONLINE TAIWAN: 74.8% of companies in Taiwan use computers and 40% are online. (Institute for Information Industries, Dec. 1999).

• $ ONLINE AUSTRALIA 2002: 5.6 million Australians are now online and 23% of households have Internet access. The numbers of people buying goods over the Internet has almost doubled to 652,000 between August 1998 and August 1999. (Australian Bureau of Statistics, Dec. 1999).

LATIN AMERICA

• # ONLINE LATIN AMERICA 2003: 19.1 million Latin Americans are expected online by 2003, up from 4.8 million at the end of 1998. (IDC Research, June 1999).

• # ONLINE LATIN AMERICA 2003: 38 million Latin Americans are expected online by 2003. (NUA/Jupiter Communications, Nov. 1999).

• $ ONLINE LATIN AMERICA 2003: E-commerce spending in Latin America will reach $8 billion by 2003, up from $167 million in 1998. (IDC Research, June 1999).

MIDDLE EAST

• Roughly 1.1 million people in the Middle East are now online. (DIT.net/Internet Arab World Magazine, Aug. 1999).

• Online consumers in Arab countries spent $95 million on e-commerce in the past year, according to (NUA/DITnet, July 1999).

• Israeli e-commerce generates $1 million per month. (NetVision, Jul. 1999).

• E-commerce in South Africa is expected to generate $1.1 billion this year. (Acuity Media Africa, Sep. 1999).

• Only two African nations lack Internet access -- Eritrea and Congo-Brazzaville. (BBC, Sep. 1999).

• AFRICAN POLITICS: Both Nigerian presidential candidates offered campaign Web sites even though only 1,000 Nigerian households have Internet access. (NUA/ Africa News, Feb. 1999)

INTERNET USAGE DEMOGRAPHICS

• AGE: 31.2% of U.S. Internet users are between the ages of 35-54, 28.5% are 18-34, 14.5% are 1-12 years old, 13.7% are 13-17, and just 12.1% are 55 or older. (eMarketer, 1999).

• EXPERIENCE: Those who have been online for 3 years or more average 10.5 hours online each week, while newcomers spend an average of 6.6 hours online per week. (NUA/Roper Starch, Nov. 1999).

• GENDER: There are 27 million women online in the US, according to eMarketer, and while they continue to grow, NetSmart America predicts they can catch and possibly surpass their male counterparts in the near future. (eMarketer, 1999).

• GENDER: 37% of women now shop online (1999), a 54% increase from 1998. (AOL/Roper Starch Cyberstudy, Nov. 1999).

• RACE: 5 million African-Americans are now connected to the Internet and are America’s largest ethnic minority group online (Cyber Dialogue, Dec. 1999).

• URBAN: Inner-city dwellers with access to computers and the Internet are as active online, if not more so, then the general U.S. user population (30% of these users buy goods online, compared with 27% of the general user population). (eMarketer/PricewaterhouseCooper, Nov. 1999).

• FARMERS: 2/3rds of U.S. farmers now own at least one PC, spending an average of two hours per week surfing the Net in search of agricultural information including commodity prices, weather information, chemicals and machinery. (NUA/Rockwood Research, 1999).

• DOCTORS: 85% of U.S. physicians are Internet users (NUA/Healtheon Corporation, May 1999).

• DOCTORS: Online access has more than doubled in the past year among hospital employees, with the greatest increase among staff physicians, where Internet access jumped from 28% to 82% in the last 12 months. (VHA, Dec. 1999).

• EXECUTIVES: 92% of CEOs, CFOs and CIOs had Net access in 1998, up from 90% in 1997, with 83% going online at least once a week, up from 71% the previous year. (NUA/Anderson Consulting, May 1999).

• COLLEGE STUDENTS: Over 50 percent of U.S. college students now surf the Net from their dorm room, while 84 percent access the Net from another campus location. (NUA/Greenfield Online, 1999).

• COLLEGE GRADUATES: This summer 82% of college graduates will search for careers and employment information online. (NUA)

Research & Development

• Permanent extension of the R&D tax credit would generate $41 billion more in new R&D spending (in real terms) over 13 years. (PricewaterhouseCoopers, Jan. 1998).

• Permanent extension of the R&D tax credit would result in $1.75 in tax revenue for each $1 invested in the tax credit. (PricewaterhouseCoopers, Jan. 1998).

• Permanent extension of the R&D tax credit would increase personal incomes by $11 billion after 13 years. (PricewaterhouseCoopers, Jan. 1998).

• Permanent extension of the R&D tax credit would reduce prices of manufactured goods, saving consumers money. (PricewaterhouseCoopers, Jan. 1998).

• Permanent extension of the R&D tax credit would provide a 31% return on investment (more than twice the typical rate of return on plant and equipment investments). (PricewaterhouseCoopers, Jan. 1998).

IT LABOR SHORTAGE

• In 1999, high tech companies reached the annual cap of available H-1B visas (115,000) on June 15. In 1998, the 60,000 H-1B cap was reached May 8. (American Electronics Association).

• Silicon Valley’s workforce falls short of meeting area high tech employers’ needs by 1/3^rd, costing employers at least $3 billion annually. (Joint Venture Silicon Valley, 1999).

• In Europe alone there will be a shortage of over 1 million IT professionals by 2002, with the U.S. expected to experience a shortage of close to 850,000 that year. (IDC Research, Sept. 1999).

• 90% of European IT companies are suffering from a skills shortage and two thirds experience delay on projects or problems with delivery as a result. (Forrester Research, Dec. 1999).

• High tech centers have lower unemployment rates than the 4.5% national average… as of May / June 1999, unemployment was 3.3% in Silicon Valley, 2.6% in Austin, Texas, and 1.7% in Fairfax, Virginia. (AEA CyberEducation, 1999).

• IT workers earned 78% more than the average U.S. worker in 1997, but worker shortages grow. (U.S. Dept. of Commerce, June 1999).

• Demand for database administrators, computer science specialists and computer scientists in the U.S. is expected to jump 118% by 2006. (U.S. Dept. of Commerce, June 1999).

• Demand for computer engineers in the U.S. is expected to jump 109% by 2006. (U.S. Dept. of Commerce, June 1999).

• Demand for systems analysts in the U.S. is expected to jump 103% by 2006. (U.S. Dept. of Commerce, June 1999).

• Demand for workers in IT occupations requiring at least an associate’s degree is expected to grow by 57% over the decade in the US. (U.S. Dept. of Commerce, June 1999).

• Almost half of all U.S. workers will work in industries that either produce IT products or use IT products extensively by 2006. (U.S. Dept. of Commerce, June 1999).

• Nearly 400,000 e-commerce jobs were added from Q1 1998 to Q1 1999. (UT’s Internet Indicators, Oct. 1999).

• State-by-State High Tech engineering employment, wage and tax revenue numbers (Nathan Associates 5/1998)

Y2K

• American businesses and the government have spent over $100 billion preparing for the 2000 date change. (U.S. Dept of Commerce Y2K Cost Report, Nov. 1999).

• Y2K spending in the U.S. & 11 European countries doubled from $256 billion in April 1998 to $494 billion by November. (Cap Gemini America tracking poll 11/1998).

• Nearly 60% of all available IT labor resources have been focused on Year 2000 activity. (Cap Gemini America tracking poll, 11/1998).

• 56% of large corporations expect 100% of their critical systems to be compliant by year's end as of 9/1999, up from 48% in 8/1999. 38% expect that between 76%-99% of their systems will be compliant. (Cap Gemini America tracking poll, 9/22/1999).

• It costs between $450 and $600 to fix each Y2K computer program (Gartner Group).

• Companies spent 29% of their computer budgets on Y2K in 1998; in 1999 costs are predicted to rise to 44% (Gartner Group).

• The cost of addressing Y2K issues will total between $150-$225 billion in the US, and $300 to $600 billion worldwide (Gartner Group).

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CHARTS & GRAPHS

• CHART: Internet Generated Revenue 1996-2002 (NUA from ActivMedia).

• How Many High Tech Entrepreneurs are in your State? (Nathan Associates, May 1998).
• See CHART on Internet usage by region. (Computer Industry Almanac, Aug. 1999).

PLEASE BE ADVISED:

Research organizations differ on many measurements and predictions. Cisco Systems cannot verify the accuracy of all of the findings. We include all credible information to offer a glimpse into the range of estimates and predictions.

Abbreviations / acronyms used herein are defined and explained more fully in the issue briefs available at Cisco’s public policy page. Most common acronyms include DSL (digital subscriber line service, which is high speed Internet access over telephone lines); WAN (wide area network connections link different organizations such as schools across a region); LAN (local area network connections link computers within an organization)