Home - Key Questions - Fixed Networks: Section 5 - Question 14

Section 5: Questions regarding the IT companies and e-commerce

Question 14: Where does e-commerce fit in?

The activities involved in e-commerce are distributed among several of the layers of the industry and different categories of players currently dominate these activities depending on the layer in question (see Industry Mapping)

For example, web hosting is located in Layer III which provides connectivity and this activity has been dominated by network operators, including incumbents like AT&T, BT and NTT, and new operators such as MCI WorldCom, Qwest, COLT and Energis. Important e-commerce services are also provided in Layer IV which consists of navigation services – such as browsers, search engines, portals and directories – as well as middleware products such as security and electronic payment systems. However, Layer IV tends to be dominated by a different group of players from Layer III, namely IT companies and new specialist companies like Yahoo and software firms, many of which are recent venture capital start-ups, that provide middleware products.

Layer V, providing applications and contents packaging, is dominated by yet more companies, ranging from those directly engaging in e-commerce, such as Amazon, E-Bay and financial services providers, to companies providing information and content like Bloomberg and Reuters, and broadcast, music and software distributors.

As is clear from this brief description, e-commerce consists of a number of specialised activities, distributed among the various layers of the industry and provided by different specialised players.

Will this pattern of distribution and specialisation continue in the future?

Will some players extend their activities into new layers and if so how successful are they likely to be?

And, more generally, does the layer model throw new light on the way in which e-commerce is organised and on how it is likely to evolve in the future?

If you wish to express your views on questions such as these go to the Workshop (Area 2). To compare your visions with those of others go to Vision Check.