eBusiness 'to explode in Europe'

Online business transactions will be worth €2.2bn throughout Europe in the next two years.

The use of wireless broadband and mobile devices - while currently still in their infancy - will propel these changes.

eBusiness in Europe is worth €77bn but is set to increase dramatically over the next two years.

Executives said they expected broadband penetration in European households to reach 30% by 2008 from 8% this year, at the first CEO Roundtable at an EU Ministerial meeting.

This would see revenues from broadband increase from €3.3bn this year to €21.7bn in 2008.

However, the implementation of anti-spam, privacy and security regulatory frameworks as well as the application of broadband in key public services and the development of innovative broadband content and services, was key to the future success of eBusiness.

The companies present at today's event were estimated to have a collective market capitalisation of almost $200bn (€168bn).

They held a two hour meeting with EU Communication Ministers which included Ireland's Dermot Ahern.

Ahern said later: "This roundtable has been a great success as it has allowed both policy makers and industry to focus on our strategic priorities for the future.

"Broadband, through the services and content it can deliver, is providing a platform for sustaining and creating jobs across Europe as well as helping business and consumers work and play smarter," he added.

The report - prepared by PriceWaterhouseCoopers - was presented to the Chief Executive's Roundtable at Dundalk Institute of Technology, Co Louth today.