1. Digital Transformations in the Information Society, ITU, Geneva, 1-2 June 2006 The Digital Opportunity Index (DOI) Michael Minges Senior Market Analyst Telecommunications Management Group, Inc.

2. 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

3. 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

4. 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.

5. 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/document osdetrabajo/8/24228/P24228.xml&xsl=/socinfo/tp l-i/p38f.xsl&base=/socinfo/tpl-i/top-bottom.xsl

6. 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

7. Digital Transformations in the Information Society, ITU, Geneva, 1-2 June 2006 DOI structure Percentage 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 DIGITAL OPPORTUNITY INDEX Utilization Indicators are averaged within categories, categories are averaged to get DOI.

8. 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 (%) 51.0 13.0 Infrastructure (0.24) Households with computers (%) Mobile subscribers per 100 inhabitants 47.50.40 Households with Internet access (%) 8.0 0.4 Mobile Internet subscribers per 100 inhabitants Internet users (% population) 9.8 Utilization (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.

9. Digital Transformations in the Information Society, ITU, Geneva, 1-2 June 2006 Only fixed Only 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 inhabitants Proportion 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-mobileHousehold-fixed

10. Digital Transformations in the Information Society, ITU, Geneva, 1-2 June 2006 Mobile coverage % population covered by mobile signal 450 MHz 2100 MHz 950 MHz 12 km 27 km 49 km Source: GrameenPhone, International 450 Association.

11. Digital Transformations in the Information Society, ITU, Geneva, 1-2 June 2006 Tariffs Internet & mobile baskets minutes To Fixed On- net Off- net TOTAL Peak6.385.322.3914.1 Off- peak 5.884.902.2112.0 Week end 4.543.781.7010.0 Calls25 SMS30 OECD prepaid, monthly basket

12. Digital Transformations in the Information Society, ITU, Geneva, 1-2 June 2006 Household ICTs % of households with, 2005: Source: Hagstofa Íslands. % of households with Internet access:

13. Digital Transformations in the Information Society, ITU, Geneva, 1-2 June 2006 Mobile Internet % of mobile users, 2005 Source: ANRT. Source: OSIPTEL.

14. Digital Transformations in the Information Society, ITU, Geneva, 1-2 June 2006 Broadband 1G 2G 2.5G 3G Permanent Internet connections as % of all subscriptions Source: National Statistics. Mobile subscribers, 000s Source: Adapted from SKT, KTF, LGT. 3G as % of total

15. The DOI for Colombia Colombia, DOIDOI, 2004 Fuente: CRT, DANE y estimaciones (Colombia), UIT (otros países).

16. Digital Transformations in the Information Society, ITU, Geneva, 1-2 June 2006 DOI, 2005

17. Digital Transformations in the Information Society, ITU, Geneva, 1-2 June 2006 Rankings Top & bottom tenWhy Korea is number 1 IndicatorWorld rank Mobile coverage1 (with 38 countries) Mobile affordability1 (with 33 countries) Internet affordability1 (with 27 countries) Household fixed lines18 Household PC4 Household Internet3 Mobile density36 Mobile Internet density2 Internet user density2 Broadband ratio1 3G ratio1 1KOR 2JPN 3DNK 4ISL 5HKG 6SWE 7GBR 8NOR 9NLD 10TWN 171SLB 172SLE 173ETH 174MWI 175RWA 176MMR 177GNB 178ERI 179NER 180TCD

18. Digital Transformations in the Information Society, ITU, Geneva, 1-2 June 2006 Mobile DOI

19. Digital Transformations in the Information Society, ITU, Geneva, 1-2 June 2006 DOI & GDP 2005 DOI GDP per capita, US$

20. Digital Transformations in the Information Society, ITU, Geneva, 1-2 June 2006 DOI & human Development Human Development Index, 2005 Digital Opportunity Index, 2004

21. Digital Transformations in the Information Society, ITU, Geneva, 1-2 June 2006 DOI & regulation Source: Jones Day / ECTA, 2004 Regulatory Telecommunications Scorecard, http://www.jonesday.com/pubs/pubs_detail.aspx?pubID=S1187 http://www.jonesday.com/pubs/pubs_detail.aspx?pubID=S1187 Change in DOI rank, 2002-2004 Regulatory Scorecard Results, 2003

22. Digital Transformations in the Information Society, ITU, Geneva, 1-2 June 2006 Other DOI permutations Gender (Czech Republic) Within a country (Brazil)

23. Digital Transformations in the Information Society, ITU, Geneva, 1-2 June 2006 Extending DOI Knowledge (e.g., UNDP Education sub index) Regulatory (e.g., EU Regulatory Scorecard) Business (e.g., EC The e-business readiness composite indicator) DOI + + +

24. Digital Transformations in the Information Society, ITU, Geneva, 1-2 June 2006 Thank you minges@d-two.info