C. M. Cho June Application of the DOI for Policy Development

II. Review of the DOI I. Benchmarking of Other Indices III. Development of the Policy Tool Contents

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, Readiness - individuals - business - government Environment - market - policy & regulatory - infrastructure Usage - individuals - business - government Network Readiness Index

Monitoring the Digital Divide - ORBICOM INFOSTATE 4 components, based on 21 indicators (public data), produce time-series for countries, Infodensity (ICT stocks) - Network Main telephone lines per 1,000 persons Cellular subscribers per 1,000 persons - Skill Adult literacy rates Gross enrollment ratios Info-use (flows of ICTs) - ICT uptake Radio per 1,000 persons Proportion of households with TV Proportion of households with cable or satellite connections Computer per 1,000 persons Internet users per 1,000 persons - ICT intensity of use International outgoing telephone traffic per inhabitant ICT spending as % of GDP Monitoring 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 subscribers Affordability : Internet access price Usage : Internet users Quality : Broadband subscribers, international internet bandwidth Knowledge : Literacy, school enrollment Digital Access Index

ICT Development Indices - UNCTAD ICT DIFFUSION 3 components, based on 22 indicators (public data), produce rankings for countries, 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 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Information Society Index - IDC 4 components, 15 indicators (survey, unpublished data), produce rankings for 52countries, 2000 to 2008 Computer : PCs per household, IT spending/GDP, IT service/GDP, Packaged software/Total IT Telecom :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 Index Computer Social Telecom Internet

CountriesIndicatorsYears WEF- e-readiness index Orbicom-Monitoring the digital divide ITU- Digital Access Index IDC- Information Society Index UNCTAD- ICT Development Indices Summary of Indices Summary of Existing Indices

Two many indicators - 48 indicators in e-readiness index Outdated indicators - Radio and TV in Infostate 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 Indices

Review of the DOI

Network Tele-density Internet-density Accessibility Accessibility for the handicapped Coverage Geographic coverage of tel service Affordability Affordability of tel service Device Computer Hand held device Quality of usage Bandwidth Usage Level Internet usage Telephone usage Utilization Opportunity Infrastructure Category Sub-Category Idea Structure of the DOI Ability Digital literacy

Device 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 Infrastructure

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 % 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 Existence of guideline or regulation for the accessibility of the people with disabilities Opportunity

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 Utilization Ability Rate of digital literate per 100 inhabitants

Household focused - Internet and PC are shared by members of household Opportunity related Indicators - Coverage, Affordability, Accessibility Transparency - Only objective indicator - Possible to include as many nations as possible -9- Simple Special Features of the DOI 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 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 Network Number of Countries LowMiddle High Hypothetical Distribution Chart of Network

Policy Tool based on Single Variable Analysis 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

NetworkDeviceAffordabilityCoverageUsageQuality High Middle Low Summary Table of Policy Suggestion

Policy Tool based on Multivariate Analysis 1 st 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 - 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 2 nd 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

Affordability Policy Suggestion based on Multivariate Analysis Coverage LowHigh Low

Refinement and Modification of Policy Guideline 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