Research released by Internet analyst Red Sheriff reveals the information gap between regional and metropolitan areas is closing. However, a report by Monash University, published late last year, says regional areas are missing out on IT jobs.

The uptake of the Internet in regional areas increased considerably in the last year, the Red Sherrif report says. The analyst praises Federal Governments initiatives, such as the $464 million "Networking the Nation program launched in 1997, for encouraging growth.

Red Sheriff point to significant gains for companies operating in regional areas.

"With almost seven million Australians living outside the capital cities, there is now a significant opportunity for Australian businesses, education services and the government to reach a new audience and capitalise on the vast array of new opportunities and benefits delivered by this medium."

"There has been very little information available about the online attitudes, behaviours and sophistication of rural and regional Australians to guide the development of targeted products and services, marketing strategies, and communication campaigns," says Virginia Mee, Research Director for Red Sheriff.