News Release

Cisco report shows Australia's Internet Economy continues to expand rapidly

95% of surveyed Australian businesses now online; Online
Oct 23, 2002

95% of surveyed Australian businesses now online; Online business revenue grows to A$43 billion or 6.4% of National Income; Broadband-enabled businesses achieve significant economic advantages

SYDNEY, Australia - October 23, 2002 - October 17, 2002 - Australia's Internet economy has expanded rapidly over the past year to produce online revenues of $43 billion, with the vast majority of Australian businesses connected to the Internet, a Cisco Systems Inc., study has found.

The study, carried out for Cisco by The Allen Consulting Group, also found that those businesses using broadband are generating higher levels of revenue per employee, per year than those businesses not using broadband.

The "Built for Business II - Beyond Basic Connectivity" report is the second report of its kind in two years and was based on research gathered from 634 businesses across Australia in ten industries. The report shows that online revenue derived by Australian businesses during 2001-02 was $43 billion, the equivalent of 6.4 percent of Gross Domestic Product. That compares with $28 billion (4.3 percent of GDP) in the previous financial year, when the first "Built For Business" report was conducted for Cisco.

The study found that 72 percent of Australian businesses have built websites to showcase their capabilities, 55 percent use online purchasing, 48 percent have adopted online sales and 21 per cent are using e-learning to increase employee skills. As the business usage of Internet-related applications grows, The Allen Consulting Group reports that Australian business is now forecasting online revenue to grow to $112 billion or 16 per cent of GDP by 2004-05.

Launching the report, Cisco Australia and New Zealand Managing Director, Terry Walsh said; "This report shows that Internet business activity is national, spread across all major industries and continues to grow. What is perhaps more significant is the fact that those businesses using broadband are reporting even stronger efficiencies."

In "Built For Business II", surveyed businesses using broadband as one of their means of Internet access were analysed separately for the first time. The study found that of businesses surveyed, broadband-enabled (using high-speed Internet connections) businesses reported higher cost savings and have revenue per employee of an average $500,000 per year, almost two thirds higher than those not using broadband.

The Allen Consulting Group Director, Mara Bun said; "Broadband use was an eye opener. Our analysis shows businesses with Broadband connectivity have advanced further into the Internet Economy and are obtaining greater benefits by doing so."

Specific findings from the analysis of broadband adoption included:

7 Almost 45 per cent of broadband enabled businesses use either Intranet or Extranet facilities, compared with 24 percent of non-broadband connected businesses.

7 Transactional capabilities to allow customers and suppliers to place a secure order and make electronic bill payments is almost three times more common in the Broadband world (28 percent against 10 percent.)

7 Twenty three per cent of broadband connected businesses are providing customer/supplier account information and order status via Internet, compared with 12 percent of non-broadband businesses.

About The Allen Consulting Group

The Allen Consulting Group is a strategic consulting firm working at the interface between business and government and specialising in public policy and economic analysis. More information available at

About Cisco Systems

Cisco Systems, Inc. (NASDAQ: CSCO) is the worldwide leader in networking for the Internet. Cisco news and information are available at

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