BBC News Online: Business

Brits poised for Internet explosion

Cable and Wireless bought MCI's Internet business arm in a move which the industry's analysts see as a major vote of confidence in the growth of Internet trade.

Market experts predict that e-commerce, business conducted over or with the help of the Internet, will be worth at least £6 billion by the year 2000.

And while the growth of the Internet's business potential has so far largely taken place in the USA, the next big market could become the UK.

Cable and Wireless chief executive, Richard Brown, said: "This transaction catapults us into a leading role in the World League of Internet and data traffic carriers.

"It gives us the scale and scope we need in the United States."

World Wide Buy-ups

Cable and Wireless' move is just the latest in a line of moves by large communications companies to move into Internet business.

Earlier in May, US entertainment giant Disney signalled its intent to become a major player on the Internet stage when it bought all the shares in Starwave Corp, a Seattle based company managing some of the USA's largest commercial websites.

Another major Seattle Internet firm, online bookstore Amazon.com, says it is already looking for major growth in commerce in the UK market.

Founder Jeff Bezos said: "Britain is not only ready for us but ready for the Internet.

"It's a global phenomenon and it is growing faster in the UK than in the US."

Deloitte and Touche Consulting Group is predicting up to 300% growth in Internet trading in the coming two years.

British businesses keen to jump onto the Internet train could do no better than turn to Seattle where a major portion of its economy is based on Internet services.

The city and Washington State's business leaders say the Internet points to a future of high employment - and high profits.

Bob Watt of the Seattle Chamber of Commerce said: "Today in Washington State (the Internet) represents 88,000 jobs.

"The average wages of jobs on the software portion is an income of $118,000 a year which is an unbelievably good income."

In this section

Microsoft trial mediator welcomed
Vodafone takeover battle heats up
EU fraud: a billion dollar bill
NatWest bid timetable frozen
No longer Liffe as we know it
France faces EU action over electricity
Inquiry into energy provider loyalty
The growing threat of internet fraud
Christmas turkey strike vote
Brown considers IMF job
Train robbery game hope for SCi
League to rule on Sky shares (From Sport)
Mannesmann fights back
Online share dealing triples
Chinese imports boost US trade gap
Pace enters US cable heartland
The rapid rise of Vodafone
Storehouse splits up Mothercare and Bhs
Brown's bulging war-chest
The hidden shopping bills
Europe's top net stock
House passes US budget
Rate fears as sales soar
Safeway faces cash demand probe
Mitchell intervenes to help shipyard
Maxwell pledge to pensioners
Power cuts spark union warning
New factory creates 500 jobs
Drugs company announces 300 jobs
Oil reaches nine-year high
'Asian management culture must change'
US 'prepared for Millennium Bug'
Gucci on a spending spree