THE INTERNET DEMAND

CHAPTER 3 - INTERNET ECONOMICS

This chapter deals with the analysis of the Internet from the point of view of demand.

Generally, studies on Internet demand focus on infrastructure and the demand for Internet connection. Using our LIIF framework, however, we can grasp that the Internet demand can instead be analyzed from different points of view, that is, we can identify a demand for each layer of our model so as to have the demand for infrastructure, the demand for connection, the demand for IT services related to the Internet, the demand for intermediary services and the demand for content and products on the Internet.

In this chapter, we will analyze the aggregate demand studies of the entire Internet industry by referring to the spending analysis carried out by leading global consulting firms such as McKinsey, BCG and IDC. We will then go into the details of the reference framework by analyzing the contextual question of the model layers.