Digital Context Pacific Alliance

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1 SEPTEMBER 2016 Digital Context Pacific Alliance 1

2 Index Overview 1 Digital scenario 2 ICT access and usage 3 Online activities 4 Regulation Appendix 2

3 Overview The (PA) has a high position regarding Internet contents compared to LATAM. However, it has an improvement margin in terms of Internet affordability Chile registers an advantageous position in all dimensions of the digitization index among the PA members The home is the main place to access the Internet, although its importance varies between 73% in Chile and 39% in Peru Educational level is more important than other characteristics (age or income) regarding smartphone ownership The use of social networks among internet users is more extended in PA than in developed countries (United States and United Kingdom) Chile is the only PA member which is close to developed countries in terms of Smartphone ownership 3

4 1.1. Structural Digitization Index, ,0 0,9 United Kingdom 0,8 0,7 0,6 0,5 0,4 0,3 Peru LATAM Mexico PA Colombia Chile OECD United States 0,2 0,1 0,0 Algeria Qatar Nigeria Pakistan Bangladesh Paraguay India Venezuela Vietnam Peru Argentina Egypt Ukraine Greece Philippines Indonesia Morocco Thailand Mexico Sri Lanka Italy Poland Bulgaria Cyprus China Saudi Arabia Croatia Colombia Slovenia Kazakhstan Russian Federation Slovak Republic Hungary Turkey Romania Uruguay Luxembourg Brazil Czech Rep. South Africa Ireland Chile United Arab Emirates Belgium Spain Singapore Austria Portugal Germany Malaysia Denmark Latvia Canada Australia France United States Sweden Netherlands Finland Lithuania Korea, Rep. Japan Estonia Hong Kong SAR United Kingdom The index is made up of indicators related with the level of infrastructure, ICT adoption and usage, costs and regulation conditions 4

5 1.2. Digitization Index 2015: dimensions 1,0 0,9 0,8 0,7 0,6 0,5 0,4 0,3 0,2 0,1 0,0 COL CHL PA PER Affordability ICT Regulation Infrastructure LATAM MEX OCDE USA GBR 1,0 0,9 0,8 0,7 0,6 0,5 0,4 0,3 0,2 0,1 0,0 LATAM PER PA COL MEX CHL USA OCDE GBR 1,0 0,9 0,8 0,7 0,6 0,5 0,4 0,3 0,2 0,1 0,0 CHL PER LATAM COL PA MEX GBR OCDE USA 1,0 0,9 0,8 0,7 0,6 0,5 0,4 0,3 0,2 0,1 0,0 COL MEX PA PER Individual use Enterprise use Content LATAM USA CHL GBR OCDE 1,0 0,9 0,8 0,7 0,6 0,5 0,4 0,3 0,2 0,1 0,0 LATAM COL PA OCDE CHL USA PER MEX GBR 1,0 0,9 0,8 0,7 0,6 0,5 0,4 0,3 0,2 0,1 0,0 OCDE LATAM MEX PER PA CHL COL GBR USA 5

6 2.1. Use of Internet in 2015 % Developed countries Emerging countries United States United Kingdom Chile Mexico Peru Colombia Internet users Smartphone owners Note: Internet users include all adults who use Internet at least sporadically or who report owning a Smartphone 6

7 2.2. Geographical distribution of Internet use (%) Note: Internet use in the last month. The last available data is 2013 (Chile), 2014 (Peru) and 2015 (Colombia and Mexico) 7

8 2.3. Smartphone vs. Cellular (2015) Adults owning a smartphone and a cellular United States United Kingdom Developed countries* Chile LATAM Colombia Mexico Peru % 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Smartphone Cellular None * Developed countries correspond to the average of South Korea, Australia, United States, Spain, United Kingdom, Canada, Germany, Italy, France and Japan 8

9 2.4. Smartphone owners profile (2015) Percentage of adults owning a smartphone By age By education level By income level United States United States United States United Kingdom United Kingdom United Kingdom Developed countries Developed countries Chile Chile Chile Developed countries Colombia Mexico Colombia Mexico Colombia Mexico Peru Peru 5 37 Peru years old > 35 years old Higher education level Lower education level Higher income Lower income 9

10 2.5. Fixed broadband (I) Percentage of subscriptions by technology type (2013) 100% % 80% 70% % 50% 40% % 20% 10% 0% Chile Colombia Mexico Peru United States Cable modem DSL Fibre 10

11 Percentage of subscriptions per 100,000 inhabitants Digital Context 2.5. Fixed broadband (II) Percentage of subscriptions and monthly subscription tariff in 2013 (Int. USD, PPP) Monthly subscription tariff 14 $ 16 $ 52 $ 21 $ 31 $ 47 $ United Kingdom United States Chile Mexico Colombia Peru Note: services provided might not be homogeneous 11

12 2.6. Places for Internet access 100% 90% 80% 70% 60% 50% , , ,8 10, % 30% 20% , % 0% Chile Colombia Mexico Peru Home Work Education Centre Private/Public centres Others Home is the principal place for Internet access Note: the last available year is 2013 (Chile), 2014 (Peru) and 2015 (Colombia and Mexico) 12

13 3.1. E-banking and E-commerce E-banking E-commerce United Kingdom 60.1 United Kingdom 78.4 Chile 22.1 Chile 24.4 Mexico 9.5 Mexico 9.9 Colombia 6.3 Colombia 4.8 Peru 4.2 Peru 5.5 Note: the last available year is 2013 (Chile and United Kingdom), 2014 (Peru) and 2015 (Colombia and Mexico) 13

14 3.2. Social Networks (2015) Percentage of Internet users who use social networks The use of social networks among Internet users is more popular in the PA than in developed countries 10 0 Chile Mexico Peru Colombia United States United Kingdom years old 35+ National Average Developed Countries 14

15 Efficiency of legal system in challenging regs, 1-7 (best) Software piracy rate, % software installed Digital Context 4. ICT laws: Efficiency and Piracy ARG VEN FIN DEU USA FRA IND CHN CHL DNK TUR MEX ESP BRA COL PER ITA GBR SGP VEN CHN PER TUR IND CHL MEX COL BRA ITA ESP FRA SGP DEU NOR GBR FIN LUX USA Laws relating to ICT, 1-7 (best) Laws relating to ICT, 1-7 (best) High income OECD countries Rest members Source: BBVA Research & World Economic Forum 15

16 Appendix 16

17 A.1. Data sources Colombia: Quality of Life Survey (ECV). National Administrative Department of Statistics (DANE) Chile: National Socioeconomic Survey (CASEN). Ministry of Planning and Cooperation (MIDEPLAN) Mexico: Module on availability and use of information technologies in households (MODUTIH). National Institute of Statistics and Geography (INEGI) Peru: National Household Survey (ENAHO). National Institute of Statistics and ICT (INEI) The World Telecommunication/ICT Indicators database (ITU, 2015) Spring Global Attitudes survey (Pew Research Center, 2015) 17

18 A.2. Composition of the Digitization Index Infrastructure Fixed (wired)-broadband speed, in Mbit/s. International Internet bandwidth. It is measured in bits per second per Internet users. Percentage of total population covered by a mobile network signal. International Internet bandwidth in megabits per second (Mbit/s). Cost Monthly subscription charge for fixed (wired) broadband Internet service (PPP $). Fixed (wired) broadband is considered any dedicated connection to the Internet at downstream speeds equal to, or greater than, 256 kilobits per second, using DSL. Users adoption Active mobile-broadband subscriptions. Fixed (wired)-broadband subscriptions. Mobile telephone subscriptions Percentage of households with Internet access at home. Proportion of individuals that used the Internet in the last 12 months. how widely used are virtual social networks in the country. Regulation How developed are your country s laws relating to the use of ICT (e.g., electronic commerce, digital signatures, consumer protection)? [1 = not developed at all; 7 = extremely well-developed] Firms adoption What extent do businesses use ICT for transactions with other businesses in the country? What extent do businesses use Internet for selling their goods and services to consumers in the country? What extent do businesses adopt new technology in the country? [1 = not at all; 7 = to a great extent] Content The Government Online Service Index assesses the quality of government s delivery of online services on a 0-to-1 (best) scale. There are four stages of service delivery: Emerging, Enhanced, Transactional and Connected. In each country, the performance of the government in each of the four stages is measured as the number of services provided as a percentage of the maximum services in the corresponding stage. 18

19 Percentage of Internet access and Internet users Digital Context A.3. Internet: access and use United Kingdom United States Chile Colombia Mexico Peru Internet access at home Internet use Note: Internet use in the last year. The last available year is 2013 (Chile, United Kingdom and United States); 2014 (Peru) and 2015 (Colombia and Mexico). 19

20 No. of subscriptions per 100 inhabitants Digital Context A.4. Wireless broadband Wireless broadband subscriptions per 100 inhabitants United States Chile Colombia Peru Mexico Note: Mexico data correspond to 2010 and

21 Financial Inclusion David Tuesta Lead Economist Víctor Adame Javier Alonso Alfonso Arellano Noelia Cámara Rosa Mª Oliveros Lucía Pacheco Mª Luisa Pérez For further information, please contact or 21

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