C. M. Chocmcho@kado.or.kr

June. 2006

Application of the DOI for Policy Development

II. Review of the DOI

I. Benchmarking of Other Indices

III. Development of the Policy Tool

ContentsContents

Benchmarking of Other

Indices

Global Information Technology Report - WEF, INSEAD

Network Readiness Index

9 sub-indexes, based on 48 indicators (survey and public data),

produce rankings for 102 countries, 2002-3

Readiness

- individuals

- business

- government

Environment - market

- policy & regulatory

- infrastructure

Usage

- individuals

- business

- government

Network Readiness IndexNetwork Readiness Index

Monitoring the Digital Divide - ORBICOM INFOSTATE

4 components, based on 21 indicators (public data),produce time-series for 139-192 countries, 1996-2001

Infodensity (ICT stocks) - NetworkMain telephone lines per 1,000 personsCellular subscribers per 1,000 persons

- SkillAdult literacy ratesGross enrollment ratios

Info-use (flows of ICTs)

- ICT uptakeRadio per 1,000 personsProportion of households with TVProportion of households with cable or satellite connectionsComputer per 1,000 personsInternet users per 1,000 persons

- ICT intensity of useInternational outgoing telephone traffic per inhabitantICT spending as % of GDP

Monitoring the digital divideMonitoring the digital divide

The Digital Access Index - ITU

DAI

4 components, based on 8 indicators (public data),

produce rankings for 178 countries, 2002

Infrastructure

Knowledge

Affordability Quality

Usage

Infrastructure : Fixed telephone and mobile cellular subscribersAffordability : Internet access priceUsage : Internet usersQuality : Broadband subscribers, international internet bandwidthKnowledge : Literacy, school enrollment

Digital Access IndexDigital Access Index

ICT Development Indices - UNCTAD ICT DIFFUSION

3 components, based on 22 indicators (public data), produce rankings for 166-200 countries, 1999-2001

Connectivity Access Policy

Connectivity : Internet hosts per capita, number of PCs per capita, telephone mainlines per capita, cellular subscribers per capita

Access : Internet users per capita, Literacy, GDP per capita, Cost of a local call

Policy : Presence of internet exchange, competition in local loop telecoms, competition in domestic long distance, competition in ISP market

ICT Development IndicesICT Development Indices

Information Society Index - IDC

4 components, 15 indicators (survey, unpublished data), produce rankings for 52countries, 2000 to 2008

Computer : PCs per household, IT spending/GDP, IT service/GDP, Packaged software/Total IT

Telecom : Broadband Households, Wireless subscribers, Handset Spending /GDP

Internet : Internet users, Mobile internet users, home internet users, e-commerce spending

Social : Secondary Education Enrollment, Tertiary education enrollment, Civil liberties, Corruption index

Information Society IndexInformation Society Index

Information Society Index

Computer Social Telecom Internet

Countries Indicators Years

WEF- e-readiness index 102 48 2002-3

Orbicom-Monitoring the digital divide

139-192 21 1996-2001

ITU- Digital Access Index 178 8 2002

IDC- Information Society Index

53 15 2000-2008

UNCTAD- ICT Development Indices

166-200 12 1999-2001

Summary of Indices

Summary of Existing IndicesSummary of Existing Indices

Two many indicators Two many indicators

- 48 indicators in e-readiness index

Outdated indicators Outdated indicators - Radio and TV in Infostate

Subjective or Unpublished indicators Subjective or Unpublished indicators

- Using opinion survey date in e-readiness index - Using unpublished date in ISI

-GDP per Capita(ICT Development Indices)- Literacy, School enrollment (DAI, ICT Development Indices)

Not relevant

Evaluation of existing IndicesEvaluation of existing Indices

Review of the DOI

NetworkTele-density

Internet-density

AccessibilityAccessibility for

the handicapped

CoverageGeographic coverage

of tel service

AffordabilityAffordability of

tel service

Device Computer

Hand held device

Quality of usageBandwidth

Usage Level Internet usage

Telephone usageUtilization Utilization

Opportunity Opportunity

InfrastructureInfrastructure

Category Sub-Category

Idea Structure of the DOIIdea Structure of the DOI

AbilityDigital literacy

Device

수신 차단 방안 강구 Proportion of households with a computer

Network

Proportion of households with a fixed lines telephone Mobile cellular subscribers per 100 inhabitants Proportion of households with Internet access at home Mobile Internet subscribers per 100 inhabitants

InfrastructureInfrastructure

Mobile cellular tariff as a % of per capita income Fixed telephony tariff as a % of per capita income Internet access tariff as a % of per capita income

Coverage

수신 차단 방안 강구 % of population covered by mobile cellular telephony Number of telecenter per 1,000 persons % of population covered by fixed telephony % of population covered by internet service

Affordability

Accessibility

수신 차단 방안 강구 Existence of guideline or regulation for the accessibility of the people with disabilities

OpportunityOpportunity

Quality

Ratio of (fixed) broadband internet subscribers to total Internet subscribers Ratio of (mobile) broadband internet subscribers to total mobile Internet subscribers

Usage

Fixed Internet users per 100 inhabitants Mobile Internet users per 100 inhabitants Fixed telephony users per 100 inhabitants Mobile telephony users per 100 inhabitants

UtilizationUtilization

Ability

수신 차단 방안 강구 Rate of digital literate per 100 inhabitants

Household focused Household focused

- Internet and PC are shared by members of household

Opportunity related Indicators Opportunity related Indicators - Coverage, Affordability, Accessibility

Transparency Transparency

- Only objective indicator

- Possible to include as many nations as possible

-9-

Simple

Special Features of the DOISpecial Features of the DOI

New technology oriented New technology oriented

- Delete radio and TV, while focusing Broadband

Development of Policy Tool

based on the DOI

Policy Tool based on single variable analysis Policy Tool based on single variable analysis

First Stage : Grouping Countries into Certain Types First Stage : Grouping Countries into Certain Types

- Make distribution chart of all six indicators (network, device, affordability, coverage, usage, quality - Categorizing all countries into certain types (High, Middle, Low or High, Low) For instance, scoring .5 or above is high scoring .2 to .5 is middle scoring .2 or less is low - Method for categorizing .2 and .5 should not be decided not by allotting equal number of cases to the groups, rather .2 or .5 should have a real meaning

Policy Tool based on single variable analysis Policy Tool based on single variable analysis

Network

Nu

mb

er of

Co

untries

Low Middle High

0.2 0.5

Hypothetical Distribution Chart of Network

Policy Tool based on Single Variable AnalysisPolicy Tool based on Single Variable Analysis

Second Stage : Suggestion of Policy Tips Second Stage : Suggestion of Policy Tips

- Identify policy issues for particular indicators (Network, Device, Affordability, Coverage, Usage, and Quality) - Sort policy issues and develop policy tips by certain types(Low, Middle, High) - Repeat this process for all 6 indicators - While considering common characteristics of each group(high, middle, low) Demographic factors : Size of Pop., Pop. density, Geographic factors : Size of Territory Economic factors : GDP, Economic growth rate Social factors : Literacy rate, rate of school enrollment

Network Device Affordability Coverage Usage Quality

Hig

hM

idd

le

Lo

w

Summary Table of Policy SuggestionSummary Table of Policy Suggestion

Policy Tool based on Multivariate Analysis Policy Tool based on Multivariate Analysis

1st Stage:Analysis of Relationship between Indicators 1st Stage:Analysis of Relationship between Indicators

- Calculate the magnitude of relationships of all 15 possible pairs between six indicators (e.g. network – device, network – affordability Network – coverage, affordability – coverage)- Compare and analyze the relationships

Why Multivariate Analysis Why Multivariate Analysis

- Possible to make more detail grouping by multi- dimension analysis e. g. good in network but poor in device, good affordability but poor coverage - More accurate and customized policy suggestion

Policy Tool based on Multivariate Analysis Policy Tool based on Multivariate Analysis

2nd Stage 2nd Stage

- Identify meaningful combination between indicators after careful review of the relationships of indicators

- Suggest customized policy tips for the countries of certain types by using method like Delphi Method

Affo

rdab

ility

Policy Suggestion based on Multivariate AnalysisPolicy Suggestion based on Multivariate Analysis

Coverage

Low High

Hig

hLow

Refinement and Modification of Policy Guideline Refinement and Modification of Policy Guideline

Follow up of Policy Tool Follow up of Policy Tool

- Conduct case study to apply suggested policy tools

- Continuous modification and refinement of Guideline not only policy tips but also grouping of countries

Thank you

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