E-commerce revenues in 2002 are now estimated to be 95 per cent below earlier expectations of this year, according to an Ernst & Young survey of 86 CEOs and senior executives from the telecomms, media and technology industries.
This huge drop, the report said, stems from unrealistic expectations about customer adoption rates of technology and services.
More than 60 per cent of those surveyed said their company's ability to grow depends less on taking market share from competitors and more on gaining a greater share of their customer's overall spending.
The most frequently mentioned concerns by CEOs are government regulation (38 per cent), increased competition (29 per cent) and market uncertainty (19 per cent).
Despite a massive global retrenchment in which market values of telecomms and technology companies fell some $7.6 trillion from March 2000 to September 2002, CEOs still believe in the vision of a future in which everyone and everything is connected.
Ernst & Young's national industry leader for Technology, Communications and Entertainment Mick Bardella said high debt levels are at their worst with telecomms and media accounting for 75 per cent of total defaults in the second quarter of 2002.