After the Dot.com Crash ; as Internet Business Models Soured, the World Wide Web Still Grew 33 Percent

By Tom Regan writer of The Christian Science Monitor | The Christian Science Monitor, December 27, 2001 | Go to article overview
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After the Dot.com Crash ; as Internet Business Models Soured, the World Wide Web Still Grew 33 Percent


Tom Regan writer of The Christian Science Monitor, The Christian Science Monitor


On the surface, it was a bad year for the Internet.

The dot.com bust left hundreds of companies out of business, thousands of people out of work, and millions of investors out-of- pocket.

But as investors and the economy tried to avoid being sucked down in the whirlpool created when dot.com companies and their stocks capsized, the actual, everyday world of cyberspace continued to transform the ways we live, work, study, play, and just, well, waste time.

Part of the reason that some people may have missed the significance of the Internet's increasing impact is that it was no longer a fad, but more and more an everyday part of life, and thus less noticeable.

Even if you decided you didn't want to use it to buy groceries, when you clear out all the Wall Street static, the facts online speak for themselves: Web users grew at a healthy pace.

As of August 2001, more than 513 million people were online, an increase of about 150 million from the year before. And that's not counting the many others who signed up after Sept. 11. Many of them came from the US - 72.3 percent of Americans use the Internet, an increase of about 6 percent from last year, according to the UCLA Internet Report 2001.

New classroom - the Internet

Take education, for instance. The Pew Internet and American Life Project found that "94 percent of youth aged 12-17 who have Internet access say they use the Internet for school research, 78 percent say they believe the Internet helps them with schoolwork, and 71 percent of online teens say that they used the Internet as the major source for their most recent school project or report."

Of course, that was when they weren't chatting online using AOL's Instant Messenger software. Almost 13 million American teenagers used some kind of instant message service as the new way to "hang out." Overall, about 130 million people used the new software so much that people referred to the current era of the Internet as "the instant message generation."

The Internet's role as a tool for communication was even more obvious in Europe, where an Internet-like system offered on cell phones called the Short Message Service (SMS) was responsible for almost 30 billion messages in Europe alone.

Next year, European and Asian cell phone providers hope to be able to offer even more services over cell phones, including streaming video (trials are already underway in South Korea). Globally, 950 million people currently use wireless phones, with that number reaching 1 billion by the summer of 2002.

People also used the Internet for more mundane tasks, often ones that meant they wouldn't have to stand in lines. Almost 50 percent of America's community banks now allow their customers to view their balances online, according to a 2001 survey by The Independent Community Bankers of America, with 39 percent of them allowing people to use the Net to pay bills. The other 50 percent say that moving in this direction is their top technology priority in the next 12 months.

And even if the overall retail market was down this Christmas, online shopping was way up. According to Neilsen NetRatings, online consumer spending in the US went up 91 percent from November. More important for online retailers, 45 percent of those surveyed said they were very satisfied with their experience, up more than 20 percent from last year.

One of the most interesting books written this year about the Internet and its future was Michael Lewis's "Next: The Future Just Happened" (reviewed July 19). One theme of the book is that technology acts as the "great leveler," often taking power away from the elites and giving it to the masses. A very important example of this happened late in 2001 when a New York Supreme Court Judge ruled in a libel case that online journalists have the same "heightened" First Amendment rights that protect big media outlets like The New York Times or CBS.

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