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JAPAN ANTICIPATES BIG BOOM IN B2B

Source: PioneerPlanet.com

Posted on June 23, 2000

      Japan's Internet business market is likely to boom over the next few years, according to government forecasts released Tuesday.

      The online market for business-to-business commerce will grow to 103.4 trillion yen ($980 billion) in 2005, up from 14.43 trillion yen in 1999, the Post and Telecommunications Ministry said in its annual report on the communications industry.

      Despite consumer concerns about privacy protection in Internet shopping, online commerce is likely to expand rapidly as connection fees drop and more people hook up to the Internet, the ministry said.

      Last year, about 27.06 million people used the Internet in Japan. The number will grow to about 76.6 million by the end of 2005, the ministry predicted.

      The online ``Internet-related business market'' was worth 6.40 trillion yen ($61 billion) in 1999, and will hit 31.25 trillion yen ($297 billion) in 2005, the Ministry said.

      The market includes Internet connection services, Internet infrastructure-related investment and peripheral business such as online advertising.

      Nippon Telegraph and Telephone Corp., which offers Internet connection for a monthly charge of 4,500 yen ($43) only in Tokyo and Osaka, plans to extend the service to other areas beginning July.




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