The Information Technology Landscape in

Luxembourg

Electronic Commerce  

 5.0  Overview

The use of e-commerce is growing in Luxembourg as it is in many of the European countries.  With its high penetration of computer and internet users and its well-developed telecommunications infrastructure, Luxembourg has established key cornerstones on which to build a robust e-commerce market.  In fact, OECD reports that Luxembourg is one of the "smaller member countries, along with Iceland and New Zealand, who are rapidly expanding their electronic commerce infrastructure."  Because of the predominance of banking  and investment fund management  in Luxembourg's economy, it is not surprising that many of the developments in the e-commerce arena are being led by this industry.

One major improvement in Luxembourg's infrastructure is the increased number of secure servers per million inhabitants, where Luxembourg has passed 75 and stands behind just four countries (U.S., Iceland, Australia, and New Zealand).  In terms of secure Web servers for electronic commerce, Luxembourg ranks just behind the U.S., Iceland, Australia, and Canada.  (Source:  OECD from Netcraft Data)

    The number of internet hosts is at 40 per 1000 inhabitants, a rate comparable to Germany and slightly ahead of Ireland and France.


 

5.1    Overall Revenues and Number of Sales for Domestic and International Business

            Business-to-Business Electronic Commerce

In August 1999, Nua Internet Surveys projected that there will be 121 million users online in Europe by 2004.  Estimates of users online increased from 34 million in 1998 to 45 million in 1999. One third of European companies now use ecommerce in business procurement, logistics, finance, and product development.  (Source:  www.nua.ie/surveys)

            Business to Consumer Electronic Commerce

An ECATT (Electronic Commerce and Telework Trends) survey in October of 1999 found that European online consumers were spending a total of US$16.8 billion online.  UK, Germany, and France accounted for the highest percentage of the sales, but on a per capita basis, scandinavian countries were ahead by a wide margin.  With a population of just 420,000 people, Luxembourg's e-commerce sales on a total basis are not likely to match those of its much more populous neighbors; however, given the relative wealth and sophistication of its population and their access to the internet, one could predict that their per capita e-commerce spending would be among the highest in the world. (Source:  www.nua.ie/surveys)
 
 
Country
Per Capita On-line Spending (US$)
United States/Canada
$250
Germany
$83
France
$200
Holland
$400
 Source: The Current State of European E-Commerce - Market Insight - ch7europe.com, www.ch7europe.com

5.2    Commercial Websites, Internet Service Providers, and Major Portals

As of December 1999, there are approximately 500 commercial websites operating in Luxembourg.  For a complete listing of the sites, please see www.restena.lu/other/com_servers.html.  There are also approximately 70 internet service providers, please see www.resetena.lu/other/int_servers.html.

The following chart provides information on select providers and their pricing for business customers; lower pricing may exist for personal or limited access accounts.
 
 
Company
Price per month (US$)
 PiNG  $19
Info Partners $19
Postes Luxembourg $19
C.M.D. Luxembourg $19
Visual Online $21
Internet Club Luxembourg $12.50
BIM Systems Luxembourg $69
Imaginet Luxembourg $22
Global Media Systems Luxembourg $16
UUNet Luxembourg $19
Selection Line $12.50
Luxembourg Online $7
Hermes Net $43
EUNet Luxembourg $69
Folz Luxembourg Details unclear
Compuserve $9
 I.B.M. $23
Microsoft Network Service Discontinued
AOL Details unavailable
Connexion Interway $29
Telephonie sa $19
Digit 352 $25
Klinke & Co. $10.50
AASCI Computer Luxemourg $20
Perceval $29
Infeurope $75
Source:  www.theblade.org/iap/europe/Luxembourg/index.html

In reviewing the Luxembourg landscape, theblade iNFO service reports that the most important Luxembourg links are:

Luxembourg Homepage Independent directory
Forum Luxembourg Contemporary local information updated daily
LuxPoint Directory The Latest Luxembourg Directory

Source:  www.theblade.org/iap/europe/Luxembourg/index.html


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