The Australian Internet Industry Association has come to the Internet's defence, responding to a survey suggesting that Australian businesses are losing interest in it.

The survey of commercial Internet usage, conducted by corporate intelligence provider Dun and Bradstreet, has prompted reports that businesses have lost enthusiasm for the Internet.

Surveying 400 business executives, it revealed that the number of businesses not conducting transactions online has grown 20 percent over last year's figure.

Responding to reports this morning Internet Industry Association (IIA)executive director Peter Coroneos defended the Internet.

"The Internet is alive and well, and rumours of its demise are profoundly exaggerated," he said.

Seeking to put parts of the survey in context, Coroneos agreed that businesses may carry negative attitudes toward the Web in the wake of the dot-com era, but said that it didn't reflect the broad sentiments of the industry toward the Net.

According to Coroneos, the survey results ignore the fundamental value additions that the Internet brings to companies. He compares the rejection of the Net to removing the telephone.

"A lot of companies over-invested in Web Development without having a strategy in place," he explained. "You can't blame that on the Internet."

The IIA agreed, however, with the report's suggestions that security problems are giving the Internet a poor reputation with businesses, having touched upon the subject itself at recent industry events.

Coroneus said that small to medium size enterprises may be experiencing difficulty utilising the Internet due to bandwidth costs.

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