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 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 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
