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The Internet

By now everyone has become acquainted with the vast potential of the Internet to expand communications, provide entertainment, and increase commerce.

Every major print publication has articles on the Internet in every issue. Ads for most Fortune 500 companies include their URL (web address) as often as their main telephone number. This is the fastest growing market/industry in the world. While the number of Internet users is doubling every six months the number of Web pages is doubling every 53 days!

It is this market that holds enormous potential for the new ISP market. Whilst the creation of content increases at exponential rates so will the demand for the sites to host that data.

There are several models of the Internet that are important to an ISP. The topological model deals with the Internet infrastructure. The distribution model is how an ISP fits into the market. The commerce model is how the ISP’s customers look at the Internet.

Internet Topology

The Internet consists of high speed circuits connecting routers that that transmit data in the form of IP packets. The circuits are maintained by large telco’s (Telstra, Optus OneNet) and the routers are owned by ISP’s. The national ISP’s such as Oz-Email, One-Net, Telstra Big Pond, lease circuits from the telco’s to connect their routers in their various Points Of presence (POPs). Regional and local ISP’s purchase connections from the national ISP’s. The national ISP’s have connections to the Network Access Points (NAPs) where they exchange routes and traffic. Thus the Internet Backbone is really several backbones owned by the National ISP’s that come together at the various NAP’s.

Internet Commerce

A business customer sees the Internet as a resource for providing information, communicating, conducting commerce, and doing business. Generally the value to them of an Internet presence is hundreds of times greater than the annual fee for their web presence. Those businesses that do not embrace this revolution in communications will be simply left behind. This fear in itself is driving traditional businesses to be "on the web" and ready to conduct business online.

The Market



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Copyright 1999 Pacific Technologies International P/L
Last modified: May 02, 2000