The European IT Observatory (EITO) is Europe's most authoritative and
comprehensive source for market data about the Information Society. Each year
the EITO annual report provides current and forecast data and trends about
Europe's use of computers and telecommunications, together with new material
about different aspects of the market.

This year's EITO report will be launched at a Brussels press conference on 5th
March 1998, with presentations from European Commission officials and members
of the EITO Board, including (Carola please provide names). Some example show
the range and depth of content:

Consumers and Technology - Big Variations

A special article on the current and future use of technology in the home
reveals wide variations in access to the Internet by European citizens. By
1997, 23% of UK homes had a PC, compared with 13% in Italy and 11% in Spain.
By 2000, according to EITO forecasts, more than six million German households
will have Internet access, but only about half a million Spanish households.

Europe Continues to Lag the US - and now Japan

Western Europe as a whole continues to lag the USA in our use - and therefore
our understanding of the new technologies. By 1997 only 19% of all Western
European homes had PCs compared with 37% in the USA and 26% in Japan, reports
EITO. However, there are some areas in which Europe leads - notably in the use
of mobile telephones, with Western Europe having an estimated 72 million
subscribers in 1998 compared with 68 million in the US, and also having a
higher growth rate of subscriptions - nearly 30% compound between 1996-2001
agains the USA's 21%. Eastern Europe is taking to the mobile phone with
enthusiasm, with nearly 60% growth expected in the same period.

Telework Begins to Bite

Another major article in EITO 1998 provides a summary of the status and growth
opportunities for telework in Europe. Working at home is a major reason for
acquiring home PCs, with 72% of all home PC users reporting work activities as
a major application. The European Telework Development initiative reports that
telework is in transition, with a new market model showing an "early" period
(to the mid 1990s) when telework was promoted only by a few enthusiasts, a
current "middle" period, with widespread adoption of telework methods by
leading companies and the emergence of new forms of telework-based
enterprises, and a future (c.2005) "mature" market when a combination of skill
shortages, environment pressures and the cost benefits of telework will have
led to widespread adoption. EITO reports that over half of all European jobs
are now "teleworkable", but that growth from 1997's estimated 4 million
teleworkers is constrained by uncertainties in the legal, regulatory and
social welfare treatment of telework. By 2002 there could be more than 15
million telework jobs in Europe and by 2007 more than 40 million, but reaching
these levels is as much dependent on public policies as on the attitudes of
employers and workers.

EURO and Year 2000 IT "Preparedness"

EITO 1998 also reports on Europe's preparedness for the imminent arrival of
the EURO (new common currency unit) and on the clash between preparing IT
systems for EURO and investigating and addressing the potential problems of
computer applications that may not recognise the year 2000. EITO's task force
has estimated the total cost of handling both these requirements at XXX
billion ECUs (Carola, I don't have the final version of the EURO article?),
but the main concern is that it may already be too late for the many companies
who haven't planned and started their preparations.

Europe will have a net shortage of the relevant computer skills over the next
three years and already suppliers and users of ICTs are bidding up the rates
of pay and fees for those with the right experience, forcing up the cost of
the changes and making it more difficult to find solutions.

Tables, Graphs and Charts

The annual EITO reports contain a wealth of tables, graphs and charts,
providing an unrivalled resource for anyone with an interest in the,
computers, telecommunications, the Information Society, telework, electronic
commerce, Internet and other applications. In many cases, time series and
growth rates show the pattern of developments year on year, with future
forecasts, and there is country-by-country analysis of both the data and the
trends.