Researcher voices fears of 'offline underclass'

More than three quarters of Europeans will become electronically interactive by 2004 using two or more digital devices, a report published today has revealed.

According to research company Datamonitor, over 85 per cent of Europeans will live in digital homes by 2004 using a number of interactive devices such as PCs, TVs, mobile phones and game consoles.

But despite the expected growth in the number of consumers getting online and the number of interactive digital devices, Datamonitor found that over a quarter of Europeans belong to an 'offline underclass', as they do not have the use of such devices.

The extent of the disadvantage the so-called underclass could face is not yet clear, said Datamonitor, but problems such as the closure of high street bank branches and the availability of internet-only financial services could lead to their alienation.

However, with the growth of interactive TV among low income families and the continued drop in PC prices, Datamonitor estimated this underclass will drop to 14 per cent by 2004.

"An online and digital Europe is here to stay. As the number of devices for accessing the internet and interactive services grow, there will be opportunities for ubiquitous networks with less than a quarter of Europe isolated from such services," said Doug Wilson, director at Datamonitor.

The researcher's Impact report, based on 17,500 telephone interviews in the UK, France, Germany, Spain, Scandinavia and the US, predicted huge opportunities for interactive TV services with 31 per cent of the UK population having, or intending to get, digital television in the next six months.

The mass ownership of other interactive devices, such as Wap-enabled phones, will mean more access channels through which businesses can conduct online sales and services to a large audience, and the total European online ordering population will grow to 100 million by 2004, Datamonitor predicted.