B. Sizing the Internet and Online Service Market Internet and online services are experiencing rapid growth, but it is important to recognize that the industry is still relatively young. The Internet and online service marketplace has enormous potential, but the current level of revenues is quite small both in absolute dollars and relative to non-electronic sales of communication and information services. Most consumers use online services principally for electronic mail and accessing information. Content, which traditionally was supported by subscription revenues from online services, is increasingly being supported by advertising revenues as more content moves to the World Wide Web. C. Growth Potential Internet and online services are projected to grow rapidly during the next five years, assuming that those services can continue to develop in the unimpeded manner that they have over the past few years.
Projections also differ on the mix of subscription and advertising revenues.
This would represent less than five percent of mail order sales. The growth of Internet and online services will generate new sources of tax revenues for states from expanded employment, increased profitability from business productivity improvements, and expanded use of telecommunication services. Industry Observations A. Distinctions Between Telecommunications Services and the Industrys Services 1. The essence of the Industrys services is not telecommunications services. While telecommunications-like services may be a component of Internet and online services, it is a minor one.