Report Recommends Major Increase in Internet Access for the UK

London, March 7, 2000 — Booz Allen Hamilton, the leading management and technology consulting firm, today (March 7) publishes a report conducted for the UK Government on Internet Access warning of the potential for a "digital divide" in the UK. Its findings and recommendations contributed to the policy initiative announced today by Prime Minister Tony Blair MP at the CBI/TUC conference on the Knowledge Economy.

In summary, the report finds that:

• The UK is already the largest e-commerce market in Europe, with a value of $1.9 billion in 1999.
• Penetration (i.e., regular usage of the Internet) is high by European standards at 22% but lags some countries, especially the US.
• Universal access—all individuals being able to use the Internet and most doing so on a regular basis—is important in terms of economic development, educational progress and social inclusiveness.
• Governments in other leading online economies (such as the US) are addressing the access issue with a range of policy initiatives.
• Market forces and existing government initiatives will bring UK penetration to at most 60% by 2003, which is not sufficient.
• A new government programme should set targets for access and usage. Bringing 70% of the UK population online is ambitious but achievable.

Barrie Berg, the vice president who led the Booz Allen Hamilton team, commented: "The UK has a tremendous opportunity to take the lead on expanding Internet access to all. The Internet market is developing at breathtaking speed, but large sections of the population could still remain 'unconnected' for many years, creating a damaging digital divide. Clear government leadership in close partnership with the private sector can address this problem and secure the UK's position at the forefront of the Knowledge Economy."

In addition, the report recommends a wide range of measures to support a policy objective of universal access, expanding the government's existing Knowledge Economy policies. Examples include:

• Offer tax incentives to companies that provide Internet equipment or access to underserved populations or that provide employees with equipment or training
• Encourage National Lottery grants to be awarded to projects driving penetration among underserved sections of society
• Stimulate development of a national infrastructure of low-cost, publicly available Internet terminals, and issue "Internet Credits" that underserved communities can redeem for free access
• Make Internet skills a major part of the National Curriculum Transform job centres into "e-career" centres providing the unemployed with free access, Internet training, and Web-based, job-matching programs
• Offer Internet-based job and skills retraining at the newly e-enabled job centres
• Provide bonuses and incentives for more people to use the Internet to access government services
• Establish a portal for government-to-business and government-to-citizen "one stop" transactions

Notes to Editors: The "Universal Access Report" is the result of work conducted on a pro-bono basis by Booz Allen Hamilton for the UK Government.