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Real downturn hits virtual world

New registrations for internet domain names are the latest victim of the economic downturn, according to research published on Wednesday.

Verisign, the company which manages the .com and .net domains, has found the number of domain names registered in the fourth quarter of last year fell 17 per cent compared with the same period in 2007.

More new sites are being registered in Russia and China, but most areas of the world saw a decline. Only 36 per cent of the 25 largest country-code domains saw growth in the fourth quarter, Verisign said, “driven largely by the weakening of the world economy”.

Analysts said the decline reflected a reduction in the number of companies starting up and a slowdown in online advertising.

The Russian domain, .ru, saw growth of 11 per cent and the Chinese domain, .cn, grew 8 per cent, driven in part by the relatively new availability of domain names that do not use the Latin alphabet.

Some 10.1m new domain names were registered in the fourth quarter, taking total registrations to 117m.

In 2008, an average of 11.9m new domain names were registered each quarter, compared with a quarterly average of 12.2m in 2007.

“What we can see is a little slowdown on the [pay per click] market,” said Tobias Wann, leader for Verisign’s domain name services in Europe, referring to domains registered for putting up advertising sites. “But there is also a little less [registration] activity on traditional domain names, like [individuals] or a company.”

Consumer demand for data services on mobile phones, such as accessing e-mail or browsing the internet, is rising despite the global economic downturn, a survey released on Monday found, Reuters reports from Barcelona. The survey of 50,000 consumers in Britain, France, Italy, Germany, Spain and the US found more than half of those who already used mobile data expected to use it more often in the next two years.

Источник: Financial Times

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