and services (direct advantages) but can also be
indirect (Hansons, 2000). For example, among the
most important of these are reduced costs, image
consolidation, greater customer loyalty, and a wider
diffusion of products offered by the company. They
are referred to as “indirect” since they do not lead
directly to sales and do not generate immediate
profits; however, they are important since they will
probably be the greatest benefits offered to
businesses by the Internet.
The gradual confirmation of the Internet as a
means of communication also permits companies to
access data and a variety of other information; for
example, it is possible to rapidly obtain information
about the market in which one operates by visiting
websites specialized in economic information or
areas that furnish updates on laws, price changes, the
appearance of any new operators in the field, fairs,
competitive bidding, and other news of interest to
operators. One can also identify the competition and
analyze them by means of information published on
company websites, etc.
Our study analyzes the spread of the Internet
among Italian firms utilizing as metrics the number
of domain names registered under the ccTLD “.it”.
We took into consideration domain names, names
that are associated to IP addresses in the net, because
we believe it to be really important for a firm to have
a domain name, as through this name an Italian firm
can exploit the above mentioned direct and/or
indirect advantages. Moreover, it is helpful for a
firm to register a domain name not only to have its
own web site, but also to benefit from the
advantages related to on-line means of
communications (for example e-mails, FTP and so
on). As a matter of fact, on-line means of
communications unlike traditional ones (for example
call-center services or telemarketing) are more
effective as they allow firms to reach, for example,
several customers at the same time, and more
flexible, as some of them allow customers to solve
problems on their own (for example with the FAQs).
In this way, a twenty-four hours a day access to
resources is granted. On the contrary, traditional
customer care methods require intensive work and a
considerable engagement of resources to ensure
prompt and accessible assistance.
Besides, the analysis of the Internet presence in
various social activities and economic and political
areas indicates a critical issue: the existence of a
“digital divide” between those who possess the
material and cultural conditions to exploit the new
technologies, and those who do not, or those who
lack the crucial ability to adapt to the rapid continual
change that characterizes the Internet today
(Warschauer, 2001; OECD, 2001, Kirkam et al.
2002; Norris, 2001; Rogers, 2001). Therefore, it is
not surprising that the announcement of the Internet
potential as “a liberty, productivity and
communication instrument, goes hand in hand with
the digital divide exposure” caused by the uneven
Internet diffusion (Castells, 2001). The 1999 World
Human Development Report written by the United
Nations organization considers the number of
Internet users one of the most widely used indicators
that show the divide between rich and poor
countries. Statistics compiled by the International
Telecommunication Union indicate that by the end
of 2002 Internet users represent in countries such as
Africa, Central America and South America only
1% of the population while this percentage goes up
of 50-60% in countries such as Iceland, United
States, Scandinavia, Singapore or South Korea (ITU,
2003).
In this paper we are going to analyze the factors
contributing to the existence of the digital divide in
Italy, taking into consideration not only economic
variables, but also educational, cultural,
demographic and in the end, technological variables.
2 METHODS
Several metrics are available for measuring Internet
diffusion. The most convenient are the so-called
endogenous metrics which can be “obtained in an
automatic or semiautomatic way from the Internet
itself” (Diez-Picazo, 1999). These metrics have the
undeniable advantage of accuracy, being based on
automatic data collection and retrieval; in addition
they allow good geographical characterization of the
phenomenon being based on data that allow
differentiation of users on a national, regional and
provincial level. Among the endogenous metrics,
according to literature, the most frequently used
ones to evaluate Internet diffusion analysis are
Internet hosts based on host count procedures (see
studies published by Internet Software Consortium
or by RIPE-NCC) and second-level domain names
(Naldi, 1997; Zook, 1999; Bauer, Berne and
Maitland, 2002). Despite the advantages offered by
endogenous measures, there are also a few
disadvantages, since in some cases they tend to
underestimate and in others to overestimate the
phenomenon being studied (Zook, 1999, 2000,
2001). Overestimation can occur when the number
of hosts is used, often associated with IP addresses,
while if we consider the number of registered
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