This study investigates the characteristics of the process of the Internet's diffusion in Hungary. The theoretical frame of our research is based on Everett M. Rogers' diffusion theory enabling us to examine the penetration flow of new technology. In the first part of our paper we outlined the conclusion based on our findings that the Internet users in Hungary - based on their socio-economic and attitudinal characteristics - can still be considered to belong to the so-called early adopters. This means that the Internet's diffusion in Hungary in 2002, has not reached yet the phase of the “qualitative leap”, the sudden rise in the S-curve. In the second part of our study we describe the characteristics of the Internet as perceived by Hungarian users. We conclude that the Internet's compatibility is limited in respect of the existing knowledge and demands of the potential users, and its relative advantage is still ambiguous for the majority of the potential users.