Digital Opportunity Index

Digital Transformations in the Information Society, ITU, Geneva, 1-2 June 2006

The Digital Opportunity Index (DOI)

Michael MingesSenior Market Analyst

Telecommunications Management Group, Inc.


Contents

• History• What is digital opportunity?• ICT Indexes: Problems & solutions• About DOI• Results• DOI and wealth, etc.• Extending DOI


History• “In cooperation with each country

concerned, develop and launch a composite ICT Development (Digital Opportunity) Index.”— WSIS I, Geneva, Plan of Action, December 2003

• “We also note the launch of the … Digital Opportunity Index, which will build upon the common set of core ICT indicators as they were defined within the Partnership on Measuring ICT for Development.”—WSIS II, Tunis, Agenda for the Information Society, November 2005

• December 2003, Geneva– Digital Access Index launched at

WSIS I• September 2004, Busan, Korea

– Review of existing ICT Indexes• June 2005, Seoul, Korea

– Prototype Digital Opportunity Index (DOI) discussed

• November 2005, Tunis– DOI launched at WSIS II with 40

countries• May 2006

– Full DOI launched


What is digital opportunity?

• The whole population having easy access to Information and Communication Technologies (ICTs) at affordable prices;

• All homes equipped with ICT devices; • All citizens having mobile ICT devices; and• Everyone using broadband.


Problems with existing indexes

• Subjective• Exclusive • Poor choice of indicators• Confusing methodology• Limited analysis over time


DOI advantages

• Objective - Only statistical indicators• Inclusive – 180 economies covered• Standard indicators - “Partnership” core

ICT indicators• Straightforward methodology - UNDP HDI

oriented, favorable to developing countries • Time series – 2000-2005


DOI structurePercentage of population covered by mobile cellular telephony

Internet access tariffs as a percentage of per capita income

Mobile cellular tariffs as a percentage of per capita income

Proportion of households with a fixed line telephone

Proportion of households with a computer

Proportion of households with Internet access at home

Mobile cellular subscribers per 100 inhabitants

Mobile Internet subscribers per 100 inhabitants

Proportion of individuals that used the Internet

Ratio of fixed broadband subscribers to total Internet subscribers

Ratio of mobile broadband subscribers to total mobile subscribers

Infrastructure

Opportunity

DIG

ITAL

OP

PO

RTU

NITY

IND

EX

Utilization

Indicators are averaged within categories, categories are averaged to get DOI.

Índice de Oportunidades Digitales (IOD), Colombia, 2004 Cobertura móvil (% populación) 80

Oportunidad(0.87)

Tarifa Internet (% PIB por habitante) 12.3

Tarifa móvil (% PIB por habitante) 5.5

Hogares con teléfono fijo (%) 51.013.0 Infraestructura

(0.24)

Hogares con computadora (%)

Abonados móvil por 100 habitantes 47.5 0.40Hogares con acceso Internet (%) 8.0

0.4Abonados Internet móvil por 100 habitantes

Usuarios Internet (% populación) 9.8Uso (0.10)Abonados banda ancha / Todos abonados Internet 19.0

Abonados móvil 3G / Todos abonados móvil 0

Note: Los categorías son iguales al promedio de cada indicador; el IOD es igual al promedio de los categorías. Fuente: TMG, Inc, adaptado de metodología del UIT.


Only fixedOnly mobile

Both mobile &

fixed

Percentage of population covered by mobile cellular telephony

Mobile cellular tariffs as a percentage of per capita

income

Mobile cellular subscribers per 100

inhabitants

(Mobile) Internet subscribers per 100

inhabitantsProportion of individuals

with Internet-enabled phone

Ratio of Broadband mobile subscribers to

mobile subscribers

Proportion of individuals that used the Internet

Internet access tariffs as a percentage of per

capita income

Proportion of households with a fixed line

telephone

Proportion of households with a computer

Proportion of households with Internet access at

home

Ratio of Broadband Internet subscribers to

Internet subscribers

Individual-mobile Household-fixed

Distance / time from fixed line


Internet Users in Japan 2004

Source: “Communications Usage Trend Survey in 2004 Compiled”, Ministry of Internal Affairs and Communications (Japan).


Mobile coverage% population covered by mobile signal

450 MHz

2100 MHz950 MHz

12 km

27 km

49 km

Source: GrameenPhone, International 450 Association.


TariffsInternet & mobile baskets

0

5

10

15

20

25

30

35

40

45

50

1998 2000 2002 20040.0%

0.2%

0.4%

0.6%

0.8%

1.0%

1.2%

As % of per capitaincomeSwisscom

Orange

Sunrise

minutes To Fixed

On-net

Off-net

TOTAL

Peak 6.38 5.32 2.39 14.1

Off-peak

5.88 4.90 2.21 12.0

Weekend

4.54 3.78 1.70 10.0

Calls 25

SMS 30

OECD low user monthly mobile basket

OECD low user mobile basket, per month, national currency


Household ICTs

0

10

20

30

40

50

60

70

80

90

100

Fixed lineComputerInternet

0

10

20

30

40

50

60

70

80

90

100

1997

1999

2001

2003

IcelandSingaporeCanadaSloveniaArgentinaChileBrazilChina

% of households with, 2005:

Sou

rce:

Hag

stof

a Ís

land

s .

% of households with Internet access:

Source: TM

G, Inc. .


Mobile Internet

100.0%

95.5%

73.2%

13.5%

12.2%

0.4%

0.2%

Receivingcalls

Makingcalls

SMS

MMS

Downloadtones, etc.

NavigateInternet

E-mail 0

50

100

150

200

250

300

2001 2002 2003 20040%

5%

10%

15%

20%

25%

30%

35%

40%

45%

WAP subscribers (000s)% Internet subscribers% Mobile subscribers

% of mobile users, 2005

Sou

rce:

AN

RT.

Source: O

SIP

TEL.


Broadband

0

5

10

15

20

25

30

35

40

45

Jan-

04

Mar

-04

May

-04

Jul-0

4

Sep

-04

Nov

-04

Jan-

05

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

1994

1996

1998

2000

2002

2004

0%

5%

10%

15%

20%

25%

30%

35%

1G

2G

2.5G3G

Permanent Internet connections as % of all subscriptions

Sou

rce:

Nat

iona

l Sta

tistic

s.

Mobile subscribers, 000s

Source: A

dapted from S

KT, K

TF, LGT.

3G as % of total

Colombia y IOD

0.00.10.20.30.40.50.60.70.80.91.0

2000 2002 2004

0.00.10.20.30.40.50.60.70.80.91.0

Kor

eaC

hile

Arg

entin

aM

exic

oU

rugu

ayB

razi

lC

osta

Ric

aV

enez

uela

Per

uP

anam

aC

olom

bia

El S

alv.

Ecu

ador

Gua

tem

ala

Bol

ivia

Par

agua

yH

ondu

ras

Nic

arag

ua

Colombia, IOD IOD, 2004

Fuente: CRT, DANE y estimaciones (Colombia), UIT (otros países).


DOI, 2005

0.0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1.0

0.0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1.0

Opportunity Infrastructure Utilization World Average

Low Medium Upper High


RankingsTop & bottom ten

Why Korea is number 1Indicator World rankMobile coverage 1 (with 38

countries)

Mobile affordability 1 (with 33 countries)

Internet affordability 1 (with 27 countries)

Household fixed lines 18

Household PC 4

Household Internet 3

Mobile density 36

Mobile Internet density 2

Internet user density 2

Broadband ratio 1

3G ratio 1

1 Korea (Rep.) 0.79

2 Japan 0.71

3 Denmark 0.71

4 Iceland 0.69

5 Hong Kong 0.69

6 Sweden 0.69

7 UK 0.67

8 Norway 0.67

9 Netherlands 0.66

10 Taiwan-China 0.66

171 Solomon Is. 0.09

172 Sierra Leone 0.09

173 Ethiopia 0.09

174 Malawi 0.08

175 Rwanda 0.08

176 Myanmar 0.04

177 Guinea Bissau 0.04

178 Eritrea 0.03

179 Niger 0.02

180 Chad 0.01


Mobile DOI

0.00.10.20.30.40.50.60.70.80.91.0

Cana

da

Icel

and

Unite

d St

ates

Switz

erla

nd

Hong

Kon

g

Japa

n

Kore

a (R

ep.)

Lith

uani

a

Bahr

ain

Braz

il

Czec

h Re

publ

ic

Philip

pine

s

Sout

h Af

rica

Bang

lade

sh

Cam

bodi

a

Burk

ina

Faso

Keny

a

0%10%20%30%40%50%60%70%80%90%100%

Fixed DOIMobile DOIMobile Contribution to DOI


DOI & GDP

R2 = 0.8753

0.0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1.0

$0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000

DO

I

GDP per capita, US$


DOI & human Development

R2 = 0.8457

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1.0

Human Development Index, 2005

Dig

ital O

ppor

tuni

ty In

dex,

200

4


DOI & regulation

R2 = 0.6394-6

-4

-2

0

2

4

6

8

10

12200 250 300 350 400

Source: Jones D

ay / EC

TA, 2004 R

egulatory Telecomm

unications S

corecard, http://ww

w.jonesday.com

/pubs/pubs_detail.aspx?pubID=S

1187 C

hang

e in

DO

I ran

k, 2

002-

2004

Regulatory Scorecard Results, 2003

http://www.jonesday.com/pubs/pubs_detail.aspx?pubID=S1187


Other DOI permutations

• Gender (Czech Republic)• Within a country (Brazil)

http://images.google.com/imgres?imgurl=http://home.utm.utoronto.ca/~kathrynd/GENDER%2520WEBSITE/IMAGES/female%2520sign.gif&imgrefurl=http://home.utm.utoronto.ca/~kathrynd/GENDER%2520WEBSITE/IMAGES/&h=200&w=156&sz=8&tbnid=WkNnR2R3UHIKAM:&tbnh=99&tbnw=77&prev=/images%3Fq%3Dfemale%2Bsign&start=1&sa=X&oi=images&ct=image&cd=1


Extending DOI

Denmark

Sweden (-1)

UK (+1)

Netherlands

Germany (-4)Belgium

Spain (-1)

Italy (+1)

Ireland (+4)

DOI e-business

Education RegulationKnowledge

(e.g., UNDP Education sub index)

Regulatory(e.g., EU Regulatory Scorecard)

E-Business(e.g., EC The e-business

readiness composite indicator)

DOI

+

+

+

E-Government(e.g., UN e-government index)


Thank you

[email protected]

Documents

Digital Opportunity Index