Consumer Confidence Key to Growing Internet Economy

Europe’s digital economy is expected to grow by 18% annually, reaching €436bn by 2012, with consumer confidence in the safety of digital markets being the most important driver for sustainable growth, according to a new study published by the global management consulting firm Booz & Company.

The study, commissioned by Liberty Global, Inc., the largest international cable operator and parent company of UPC Broadband and Telenet, found that the next phase of market growth value will increasingly shift from the access business to more advanced services such as e-commerce, content and advertising. Future growth therefore relies on internet users using new services and increasing their online spending. This brings with it significant industry challenges for network operators.

The report reveals that digital confidence is key to market growth. Using the analysis of cases of success and failure, a comprehensive analysis of consumer research and more than 50 expert interviews, the report concludes that there are four areas key to building digital confidence.