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.
Digital Transformations in the Information Society, ITU, Geneva, 1-2 June 2006
Contents
• History• What is digital opportunity?• ICT Indexes: Problems & solutions• About DOI• Results• DOI and wealth, etc.• Extending DOI
Digital Transformations in the Information Society, ITU, Geneva, 1-2 June 2006
Digital Opportunity Index• “In cooperation with each country
concerned, develop and launch a composite ICT Development (Digital Opportunity) Index.”— WSIS I, Geneva, Plan of Action, December 2003
• “The development of ICT indicators is important for measuring the digital divide. … 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
Digital Transformations in the Information Society, ITU, Geneva, 1-2 June 2006
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.
Digital Transformations in the Information Society, ITU, Geneva, 1-2 June 2006
Problems with existing indexes
• Subjective• Exclusive • Poor choice of
indicators• Confusing
methodology• Limited analysis over
time
http://www.cepal.org/cgi-bin/getProd.asp?xml=/socinfo/noticias/documentosdetrabajo/8/24228/P24228.xml&xsl=/socinfo/tpl-i/p38f.xsl&base=/socinfo/tpl-i/top-bottom.xsl
Digital Transformations in the Information Society, ITU, Geneva, 1-2 June 2006
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
Digital Transformations in the Information Society, ITU, Geneva, 1-2 June 2006
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.
Digital Opportunity Index (DOI), Colombia, 2004 Mobile coverage (% population) 80
Opportunity(0.87)
Internet tariffs (% GNI per inhabitant) 12.3
Mobile tariffs (% GNI per inhabitant) 5.5
Households with fixed lines (%) 51.013.0 Infrastructure
(0.24)Households with computers (%)
Mobile subscribers per 100 inhabitants 47.5 0.40Households with Internet access (%) 8.0
0.4Mobile Internet subscribers per 100 inhabitants
Internet users (% population) 9.8Utilization
(0.10)Broadband subscribers / Total Internet subscribers 19.0
3G mobile subscribers / Total mobile subscribers 0
Note: The categories are the averages of the value of each indicator; the DOI is the average of the values of the three categories.
Digital Transformations in the Information Society, ITU, Geneva, 1-2 June 2006
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
Digital Transformations in the Information Society, ITU, Geneva, 1-2 June 2006
Mobile coverage% population covered by mobile signal
450 MHz
2100 MHz950 MHz
12 km
27 km
49 km
Source: GrameenPhone, International 450 Association.
Digital Transformations in the Information Society, ITU, Geneva, 1-2 June 2006
TariffsInternet & mobile baskets
05
101520253035404550
1998 2000 2002 2004
Swisscom
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 prepaid, monthly basket
Digital Transformations in the Information Society, ITU, Geneva, 1-2 June 2006
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
IcelandSingaporeGermanyCanadaJapanSlovenia
% of households with, 2005:
Sou
rce:
Hag
stof
a Ís
land
s .
% of households with Internet access:
Digital Transformations in the Information Society, ITU, Geneva, 1-2 June 2006
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.
Digital Transformations in the Information Society, ITU, Geneva, 1-2 June 2006
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
The DOI for Colombia
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, DOI DOI, 2004
Fuente: CRT, DANE y estimaciones (Colombia), UIT (otros países).
Digital Transformations in the Information Society, ITU, Geneva, 1-2 June 2006
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
Digital Transformations in the Information Society, ITU, Geneva, 1-2 June 2006
RankingsTop & bottom ten Why Korea is number 1
Indicator 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 KOR
2 JPN
3 DNK
4 ISL
5 HKG
6 SWE
7 GBR
8 NOR
9 NLD
10 TWN
171 SLB
172 SLE
173 ETH
174 MWI
175 RWA
176 MMR
177 GNB
178 ERI
179 NER
180 TCD
Digital Transformations in the Information Society, ITU, Geneva, 1-2 June 2006
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
Digital Transformations in the Information Society, ITU, Geneva, 1-2 June 2006
DOI & GDP2005
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 $60,000
DO
I
GDP per capita, US$
Digital Transformations in the Information Society, ITU, Geneva, 1-2 June 2006
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
Digital Transformations in the Information Society, ITU, Geneva, 1-2 June 2006
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
Digital Transformations in the Information Society, ITU, Geneva, 1-2 June 2006
Other DOI permutations
• Gender (Czech Republic)• Within a country (Brazil)
Digital Transformations in the Information Society, ITU, Geneva, 1-2 June 2006
Extending DOI
Denmark
Sweden (-1)
UK (+1)
Netherlands
Germany (-4)Belgium
Spain (-1)
Italy (+1)
Ireland (+4)
DOI e-business
Education Regulation
Knowledge(e.g., UNDP Education sub index)
Regulatory(e.g., EU Regulatory Scorecard)
Business(e.g., EC The e-business
readiness composite indicator)
DOI
+
+
+
Digital Transformations in the Information Society, ITU, Geneva, 1-2 June 2006
Thank you