DAVOS, Feb 2: Internet industry leaders trumpeted yesterday the wonders of mega-niergers like the recent AOL-Time Warner tie-up — but admitted the world s poor will not benefit If they don’t even had a phone, says AFP.

The warning was backed up by South African President Thabo Mbeki, who called for an international initiative to prevent the continent from being left behind.

You will not have ... participation by African countries in the involvement In this technological revolution (when) we don’t even have the electricity infrastructure which make possible die access to this tech-nology." he said.

America Online (AOL) chief Steve Case and Microsoft boss Bill Gates agreed that the Internet revolution has only Just begun — but said coming years will determine if the "digital divide" between rich and poor will narrow or widen.

We recognize that there are many countries where the kind of discussions we're having are almost relevant, because they have much more basic needs, and in many cases there’s so few telephones." Case told a press conference.

Gates also admitted that, while in the wealthy West cable companies are frantically digging up roads to provide highspeed Internet access, that is Just a dream in poorer continents.

If you're going to reach out to Africa, you can t dig ditches." he said on a panel discussion on "Winning strategies for the Internet race."

The Internet and its role in shaping the developing global economy is a central theme of the World Economic Forum (WEF) annual meeting in Davos. Switzerland.

The merged AOL-Time Warner giant, bringing together

the world s largest online service and a huge media content producer, Is set to become the world's dominant media group once its deal is finalized later this year. Case said.

But Its potential for growth was also inextricably linked to the development of other technologies. Including television and mobile telephony, which could help poor countries leapfrog Into the wired world.

"It's not only your PC that will be revolutionized; your TV will be revolutionized: your phones will be revolutionized." said Gates, who recently gave up the Microsoft helm to return to hls software developing roots.

But Case warned that such development needed positive decisions by both business and government. If the gap between rich and poor was not going to widen as the US and Western nations pulled ahead.

"If people don't pro-actively address this there is a risk that

the digital divide will grow,'

'1 think there's an opportunity for It to shrink, but that's going to require a concerted effort. not Just from companies but also from countries and more of a spirit of public-private partnership," he added.

The risk of the Internet widening the gap between rich and poor was underlined in a survey of corporate bosses’ views unveiled at the Davos meeting, which gathers more than 1.500 business and political leaders.

The survey by consultants Pricewaterhouse Coopers indicated that 50 per cent of business bosses say the Internet risks widening the gap. while only 38 per cent see it narrowing the divide.

South Africa's president meanwhile said there was a real risk that the continent's poverty could be compounded by lack of access to the online revolution.