Tiscali 2001 Annual Report Download - page 24

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REPORT ON OPERATING PERFORMANCE
Market profile
2001 was crucial for the Internet, with strong competition leading to a concentration of
providers through mergers and acquisitions, as well as the failure of some ventures that
were mainly national in scope.
With about 47mn active users, the European Internet access market is currently dominated
by three providers which, together with Tiscali, account for about 54% of total market
share:
– T-Online, ISP subsidiary of Deutsche Telekom AG, and market leader in Germany;
– Wanadoo, ISP subsidiary of France Telecom and market leader in France and the UK
(operating as Freeserve);
– AOL Europe, European branch of AOL Time Warner, which operates mainly in
Germany, France and the UK.
European Internet Market 2001
16
Added to these Companies are ISPs controlled by ex-incumbent operators, including Terra-
Lycos in Spain, Seat-Tin.it in Italy and BT Openworld in the UK. These enjoy important
positions in their respective markets, often thanks to their first-mover advantage.
In 2001, user demand for Internet services jumped sharply, as evidenced by the increase in
minutes of Internet traffic as well as the growing use of services like e-mail, Instant
Messenger, value added services including Internet banking and e-travel.
The Internet has consolidated its position as one of the major media. Its development
shows no signs of slowing and seems set to continue in the years to come, as regards not
only its penetration amongst the public, but also the number and scope of products and
services on offer.
Source: IDC