1 An experimental ISP for ICT for France 28 June 2006 STESWP Task Force on Services

2 Objective of the experimental ISP To assess the practicability of the Manual, especially for discussions in Sections 4 and 5

3 ICT services (OECD definition) 5151Wholesale of computers, computer peripheral equipment and software 5152Wholesale of electronic and telecommunications parts and equipment 6420Telecommunications 7123Renting of office machinery and equipment 72Computer and related activities

4 ISP Manual recommendations PreferredGross turnover deflated by appropriate price indices AlternativeGross turnover deflated by Partially representative price indices OtherVolume indicators (e.g. employment)

5 Sources for the information INSEE (Turnover, Prices, Value added) Eurostat (Turnover) UNEDIC (Employment) OECD / DSTI (Value added)

6 Aggregation process Ict 72 ICT

7 5151: Wholesale of computers, computer peripheral equipment and software Turnover index for this category is deflated by a partially representative price index (PPI for micro-computers)  Alternative method Other task –Interpolate monthly PPI from quarterly data for Assessment: Recommendations from the manual were detailed enough

8 5152: Wholesale of electronic and telecommunications parts and equipment Turnover index for this category is deflated by a partially representative price index (CPI for telecopy and telephone equipment)  Alternative method Assessment: Recommendations from the manual were detailed enough

9 6420: Telecommunications Turnover index for this category is deflated by a price index for this category (CPI)  Preferred method Other tasks Backcast employment Interpolate quarterly turnover with another variable (employment) Convert employment series into an index Estimate quarterly turnover in the end of the series using a link with the quarterly employment index Estimate monthly index from quarterly using cubic spline

: Renting of office machinery and equipment Turnover index for this category is deflated by a partially representative price index (PPI for printers)  Alternative method Other task –Interpolate monthly PPI Assessment: Recommendations from the manual were detailed enough

11 72: Computer and related activities Turnover indices for the components are deflated by their proper deflators (721, 723, 724, 725) or by a proxy deflator (722)  Preferred method for 721, 723, 724 and 725  Alternative method for 722 Other tasks –Interpolate monthly PPIs for 721, 723, 724 and 725 and estimate PPI for 722 as an average of PPI for other sub- sectors Assessment: Recommendations from the manual were detailed enough

12 Aggregation process and Weights Ict 72 ICT (Equal weights) (Value added weights)

13

14 Main conclusions For this study, the Manual provides sufficient level of practical guideline and MSs agreed in their comments However, no assessment could be provided for the recommendations on managing breaks or missing information for all periods MSs are invited for the following questions: Use of the preferred variable when the alternative is available with a higher frequency ? Recommendations on the frequency of revisions

15 Comments on the questions Preferred quarterly vs. Alternative monthly -ONS practices: Analyse each indicator using the quality framework; possibly benchmark the monthly onto the quarterly; ultimately rely on statisticians’ judgement -The manual could include some guidance Revisions – ONS revise ISP in line with their NA revision policy