Key Ratios/Terms The rate at which a portal is spending its capital while waiting for profitable operation.
Most internet companies, still in their early stages of development, tend to spend cash faster than they can generate revenue.
There is a major investment opportunity in companies that will be developing the associated IT infrastructure.
With many markets across the world aiming to connect more users, billions will be spent in infrastructure.
A portfolio of revenue-generation sources appears to be the way forward, and portal operators are starting to open up to new models.
The search for real revenues has led the move toward charging for content.
Even lawmakers have taken note of the universal Internet access need.
In Wisconsin, the state has awarded 0,000 in grants to expand rural Internet access to incentivize private corporations to offer their services. Residents of Alberta’s Strathcona County are heavily underserved, only 35% of the county’s residents have access to Internet.
Meanwhile, portals are pitching themselves as e Commerce sites, hoping to enjoy some of the same successes of online retail portals like The infographic shows that the North American market generates the most business traffic, watches the most internet TV, and is second in internet gaming.Underserved Africa is seeing similar investment in infrastructure.Canadian telecommunications giant, Telus (TSE: T), recently announced it will invest .8 billion in infrastructure in order to gain market share in underserved markets.This is on trend with growing North American demand, as evidenced by the infographic.Others were search engines like Alta Vista and Excite that offered users ways of finding the information they were looking for on the web.