Internet Usage/Coverage in Belgium

Belgium is one of the top countries in the European Union for internet coverage, although actual usage still lags behind its neighboring countries. With a population of 10,392,226, approximately 58.3% of persons living in Belgium are internet users. (globaltechforum.com[1], Encarta.com[2]) As could be expected, most Belgians partake in this usage at their place of residence. Home usage makes up 53% of usage, and work usage makes up 22% of usage, with the remaining 25% of usage divided between users at school and other various locations. (globaltechforum.com[3]) Internet coverage in Belgium has improved drastically in recent years, placing Belgium within the top five countries in the European Union for internet coverage. With 100% of the country covered by DSL technology, Broadband penetration in Belgium has stalled at a minimal 20%. (globaltechforum.com[4])

E-Commerce

As internet availability and usage increase throughout Belgium, so does the use of e-commerce (defined as “commerce conducted electronically, as on the internet). Currently, approximately 6,058,667 persons living in Belgium (58% of the population) use the internet. Of those people, 54% report sending and receiving e-mails, 50% report looking for goods and services on the web, 20% report downloading games and music, while only 8% report using telephone or videoconferencing features over the internet. (globaltechforum.com[5]) These figures primarily represent consumers, but are also representative of the percentages of Belgian businesses that also take advantage of the ability to conduct business electronically. Globaltechforum.com[6] reports that while 43% of Belgian companies conduct business purchases and transactions over the internet, only 15% actually accept electronic orders/transactions.

Within the meager amounts of Belgian commerce that are conducted over the internet, Belgium’s strengths include e-banking features such as online banking and bill paying features, and shopping via the web. (ebusinessforum.com[7]) As mentioned above, 50% of Belgians with internet access report searching for goods and services on the web. It was reported in late 2005 by InSite Consulting that approximately just over two million consumers purchased goods and services over the web, with an average of approximately 4 transactions per person annually. (ebusinessforum.com[8]) The majority of these purchases were of simple goods such as events tickets, clothing, and books.

The Future

As more companies both inside and outside of Belgium begin to target internet users, online marketing and promotion aimed at those consumers continues to increase. As of late 2004, 39% of Belgian companies were using e-mail marketing directed at consumers, while only 15%-17% of those businesses are capable of accepting online orders. (ebusinessforum.com[9]) While it is difficult to disagree that internet access and usage by Belgians is at record highs for any country, there is much to be desired concerning the amount of e-commerce that actually takes place. The majority of Belgian e-commerce for the time being is mostly made up of small transactions made by approximately ¼ of the population to businesses located within the country’s boundaries. Hopefully as Belgium continues to embrace this new technology, outside companies will more aggressively target Belgian’s and the potential revenue at stake. As of now, there are not many benefits compelling enough to persuade outside companies to market and cater to the interests of Belgian consumers. In order to do so, a company would have to structure itself in a manner that would allow it to operate within the rules and regulations set forward by Belgium’s government. As a relatively small country with a slowly developing internet economy, the benefits do not quite outweigh the costs as of yet.

For more information concerning e-commerce in Belgium, please refer to the references below:

"Belgium." MSN Encarta. 23 Mar. 2008 <[10]>.

"Doing E-Business in Belgium." Global Technology Forum. The Economist Intelligence Unit. 23 Mar. 2008 <[11]>.

"Overview of E-Commerce in Belgium." Global Technology Forum. 13 Jan. 2006. Economist Intelligence Unit. 23 Mar. 2008 <[12]>.

Sanghani, Nirav. "EU Aims for 30% Broadband Coverage by 2010." Daily Tech. 19 Mar. 2008. 23 Mar. 2008 <[13]>.

Erik Edison e1608126

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