2010 Survey on Information and Communication Technology for Information Economy: Preliminary Results

The 2010 Survey of Information and Communication Technology (SICT) was conducted in 2011 primarily to collect and generate information on the access and utilization of ICT among establishments in the country for reference year 2010. The SICT adopted the Information Economy as its framework.

Information Economy (IE) is a term used to describe the economic and social value created through the ability to rapidly exchange information at anytime, anywhere and to anyone. It is characterized by the intensive use of information and communication technology (ICT) by businesses for the collection, storage, processing and transmission of information.  For this Special Release, IE will refer to industries involved in producing and trading of ICT products, and those which primarily use ICT in providing products and services.

IE is comprised of the Information and Communication Technology (ICT) sector and the Content and Media sector.

Industries under ICT sector are those which fulfill and/or enable, by electronic means, the processing, communication, transmission and display of information. It excludes the industries which create the information.  The ICT sector consists of three main industries, namely: ICT manufacturing industries, ICT trade industries and ICT service industries.  ICT service industries include:  Software publishing, Telecommunications services, Computer programming, consultancy and related activities: web portals and Repair of computers and communication equipment.

Industries under Content and Media Sector are those which produce goods and services primarily intended to inform, educate and/or entertain humans through mass communication media. These industries are engaged in the production, publishing and/or distribution of content (information, cultural and entertainment products), where content corresponds to an organized message intended for human beings. Publishing activities and Motion picture, video and television programme production, sound recording and music publishing activities are classified under the Content and Media Sector.

This Special Release presents the preliminary results of the 2010 SICT for the core ICT indicators of the Information Economy (IE).  Table 1 shows a comparison of the percentages of the core ICT indicators by industry classified as IE for reference years 2008, 2009 and 2010.  The regional breakdown for the same indicators and reference years is presented in Table 2.

Survey results showed that there were 2,122 establishments classified as IE in 2010, an increase of 0.7 percent from 2,107 in 2009.  Compared to 2008, however, this number declined by 20.9 percent from 2,682 in 2008.  The change in economic activities and stopping of operation of some establishments resulted in the decrease in the number of establishments from 2008 to 2010.

Ninety-seven percent of establishments use computer and other hardware; nine in ten report Internet access

About 97 percent of the 2,122 IE establishments IE used computer and other hardware in their business operations SICT. This percentage was slightly higher than the 96.1 percent reported in 2009.  Only 91.1 percent was recorded in 2008.  Those in the ICT sector (97.2%) reported a slightly higher percentage compared to the Content and Media Sector (96.8%).

All of the establishments engaged in ICT manufacturing industries, software publishing and computer programming, etc. activities used computers and other hardware.  Those engaged in repair of computers and communication equipment had the lowest percentage at 83.5 percent.

Among regions for the same indicator, Northern Mindanao, Caraga Region, and Autonomous Region in Muslim Mindanao (ARMM) recorded the highest with 100 percent.  Cagayan Valley and Cordillera Administrative Region (CAR) had the lowest at 84 percent.

There was also an increasing trend in the percentage of establishments with Internet access as nine in every 10 establishments nationwide had Internet access in 2010.  In 2008, it was 81.7 percent and 88.4 percent in 2009.  The ICT sector (91.6%) had also a higher internet access compared to the Content and Media Sector (89.8%).  Software publishing registered 100 percent internet access for the three reference periods.  Repair of computers and communication equipment had the lowest internet access at 58.3 percent.  

Among regions, internet access was present among 94.8 percent of establishments in the National Capital Region, the region with the highest percentage of internet access while the lowest percentage was in Cagayan Valley with 61.3 percent.

Four out of ten employees use computer routinely at work; three out of ten routinely use computer with Internet connection at work

Of the 259,741 IE employees, 48.9 percent used computer routinely at work in 2012. The percentage was slightly higher than that in 2009 (46.0% of 272,063 employees) and four percentage points higher than that of 2008 (44.9% of 304,864 employees).   Those in the Content and Media sector (59.7%) had a higher percentage for this indicator compared to those in the ICT sector (47.9%).

Among IE industries, employees engaged in computer programming, etc. had the highest percentage at 94.1% while those in ICT manufacturing industries had the lowest at 30.1%.   At the national level, only one-third (31.3%) of employees used computer with internet connection routinely at work, lower by 1.9 percentage points compared to the 2009 percentage of 33.2 percent but almost the same as that of 2008 (31.9%).  Employees in the Content and Media sector (47.0%) registered a higher percentage than those in the ICT sector (29.9%).  Software publishing (91.5%) had the highest percentage of employees routinely using computer with internet access at work while employees of ICT manufacturing industries had the least percentage at 9.2 percent.

By region, Eastern Visayas (82.3%) reported the highest percentage of employees routinely using computer at work while those in CALABARZON (33.0%) and Cagayan Valley (33.6%), the lowest.  Eastern Visayas (79.4%) and CALABARZON (8.9%) were also the regions with the highest and lowest percentage of employees using computers with internet access routinely at work.

About forty percent of establishments maintain website

Presence of a website was reported by 43.4 percent of establishments in 2010.  In 2008, 46.2 percent of establishments reported having their own website.  The percentage went down to 43.1 in 2009.  The Content and Media sector (46.5%) had a higher percentage with website than those in the ICT sector (42.3%).  Among IE industries, software publishing (76.2%) had the highest percentage with website while repair of computers and communication equipment (21.7%) had the lowest.

More than half (55.1%) of the National Capital Region-based establishments maintained website, the highest among regions while at 6.5 percent, MIMAROPA recorded the lowest.

More than 20 percent of establishments utilize the Internet for business

E-commerce via the Internet also suffered a decline in the past three years.  This is the process of buying or selling of goods and services through Internet protocol-based network.  In 2010, E-commerce via the Internet was reported by 21.7 percent of the establishments, much lower than the 26.7 percent reported in 2009 and 31.4 percent in 2008.

The ICT sector (24.5%) had a higher percentage of establishments engaging in e-commerce via internet than those in the Content and Media sector (13.8%).  Software publishing (38.1%) followed by computer programming, etc. (36.1) registered the highest percentage for this indicator.   On the other hand, the lowest was recorded by motion picture and music publishing activities at 12.1 percent.

Among regions, the highest utilization rate of 28.3 percent was recorded by the National Capital Region-based establishments.  None of the establishments in Cagayan Valley Region, reported having used the medium.

E-commerce can also be undertaken through computer networks other than the Internet, in which only 9.0 percent of all the establishments reported having used the medium.   In 2009, the percentage stood at 10.0 while it was 12.2 percent in 2008.

Nearly 20 percent of establishments do business through mobile phone  

Cellular mobile phone is another medium that can be used in doing business.  In 2010, a 19.0 percent used mobile phones in business transactions, higher than the 18.4 percentage reported in 2009 but lower compared to 22.6 percent reported in 2008. 

The ICT sector and the Content Media sector reflected similar percentages at 19.3 percent and 18.4 percent, respectively.  ICT trade industries had 30.5 percent, the highest, engaged in this kind of transaction while software publishing, with 4.8 percent, had the lowest among IE industries.   

ARMM (42.9%) reported the highest business transaction via cellular mobile phone and the lowest was in  Northern Mindanao with 5.6 percent.

Internet used extensively in transacting with government organizations

Establishments also used the Internet in transacting with government agencies as more government agencies maintained websites and more establishments had Internet access in the past three years.  Seventy-eight percent of the establishments used Internet to obtain information from government organizations in 2010.  It grew by more than 20 percentage points compared to 56.2 percent reported in 2008 and four percentage points higher than in 2009 (74.1%) The Content and Media sector and ICT sector recorded similar percentages at 78.9 percent and 77.7 percent, respectively.  ICT manufacturing industries recorded the highest percentage of establishments performing the activity at 92.0 percent.

Downloading or requesting government forms was reported by 74.5 percent of establishments with Internet access. The ICT sector at 75.7 percent was higher than those of the Content and Media sector with 71.5 percent.  Software publishing had the highest percentage among IE industries at 85.7 percent.  Eight out of ten establishments in ICT Manufacturing Industries and those in computer programming, etc. reported this type of activity.

Completing and sending forms on-line was the third activity mostly done by establishments with Internet access as 50.4 percent of the establishments reported this activity.  ICT manufacturing industries with 68.0 percent, remained on top.

Making on-line payments to government organizations was the least among the activities done by the establishments via the Internet.  About 32.1 percent of establishments reported this type of activity.  More than half of the establishments (57.0%) in ICT manufacturing industries with Internet access reported this type of activity, the highest among IE industries.

Internet is used by establishments to share, distribute and obtain information

Sharing or distribution of information within the establishment (55.9%) and obtaining information from other organizations (55.6%) were the activities done mostly by establishments when transacting via the Internet.  Other activities consist of sharing or distribution of information with other organization (44.4%), internal or external recruitment (41.9%), finance accounting and auditing (33.2%), and staff training (29.3%).

====================================================================================================================

TECHNICAL NOTES

Background

The 2010 SICT is the fourth in the series conducted by the National Statistics Office. It is as a rider to the 2010 Annual Survey of Philippine Business and Industry (ASPBI) conducted in April 2011.

Objective of the Survey

The 2010 SICT aims to collect and generate information on the availability, distribution and access/utilization of ICT among establishments in the country.

Specifically, the survey aims to measure the following:

• component of ICT resources and their utilization by establishments
• diffusion of ICT into establishments from various sources
• e-commerce transactions from data on e-commerce sales/revenue and purchases
• cellular mobile phone business transactions from data on sales/revenue
• estimate of the number of ICT workers in establishments
• methods of disposal of ICT equipment

Uses of the ICT Data

The results of the survey will be used in:

• assessing the use of ICT resources by establishments and the available infrastructure
• determining how establishments use the internet, including the activities for which it is used
• determining Web presence in establishments
• determining the revenue generated through e-commerce transactions, and through cellular mobile phones
• determining the methods of disposal of ICT equipment

Frame of Establishments

The 2010 List of Establishments (LE) is used as frame of this survey.

Unit of Enumeration

The unit of enumeration of the survey is the establishment. Establishment is an economic unit under a single ownership or control, i.e., under a single legal entity, engaged in one or predominantly one kind of activity at a single fixed location.

Scope and Coverage

The survey covered all industries in the 2010 ASPBI. Industries in the 2010 SICT were classified as Core ICT and Non-Core ICT sectors. The Core ICT industries are those referred as the Information Economy or IE.

The IE is composed further of the ICT Sector and Content and Media Sector. The industries under each sector are as follows:

1. ICT Sector
   • ICT Manufacturing Industries
   • ICT Trade Industries
   • ICT Service Industries
     • Software publishing
     • Telecommunication services
     • Computer programming, consultancy and related services
     • Data processing, hosting and related activities; web portals
     • Repair of computers and communication equipment
2. Content and Media Sector
3. Publishing activities
4. Motion picture, video and television programme production, sound recording and music publishing activities

Sampling Design

The 2010 SICT samples are sub-samples of the 2010 ASPBI.

The 2010 SICT utilized the stratified systematic sampling design with five-digit PSIC serving as industry strata (industry domain) and the employment size (Total Employment, TE) as the second stratification variable.

Establishments engaged in the core ICT industries will be completely enumerated (100 %), regardless of employment size. The establishments classified in the non-core ICT industries and with total employment of 20 and over shall be covered on a 25 percent sampling basis. For each of the non-core ICT industry, the sample size for establishments with TE of 20 and over was determined by applying the specified sampling rates for each of the industry domain at the national level. The minimum sample size is set to 3 establishments and maximum of 100 establishments per cell (industry domain).  However, when the total number of establishments (N) in the cell is less than the set minimum sample size, all establishments in that cell are taken as samples.

A total of 8,565 samples were selected for the survey.

Indicators

Some indicators to be generated from the survey are as follows:

• proportion of establishments using computer
• proportion of employees using computers
• proportion of establishments with internet connection
• proportion of employees using the internet at work
• proportion of establishments with Web presence
• proportion of establishments with Intranet
• proportion of establishments placing and receiving orders over the internet
• proportion of establishments using the Internet by type of access and activity
• proportion of establishments with LAN and Extranet

Reference Period

All information collected in the 2010 SICT refers to calendar year of 2010 except for employment which is as of 15 November 2010.

Response Rate

The overall response rate for the 2010 SICT is 92.3 percent of the 4,285 sample establishments in IE.

CONCEPTS AND DEFINITIONS

Information Economy (IE) is a term used to describe the economic and social value created through the ability to rapidly exchange information at anytime, anywhere to anyone. It is characterized by the intensive use by businesses of ICT for the collection, storage, processing and transmission of information. The use of ICT is supported by supply of ICT products from an ICT-producing sector and through trade.

IE is comprised of the Information and Communication Technology (ICT) Sector and the Content and Media Sector.

Industries under ICT Sector are industries which fulfill and/or enable, by electronic means, the processing, communication, transmission and display of information. It excludes the industries which create the information.

Industries under Content and Media Sector are those which produce goods and services primarily intended to inform, educate and/or entertain humans through mass communication media. These industries are engaged in the production, publishing and/or distribution of content (information, cultural and entertainment products), where content corresponds to an organized message intended for human beings.

Information and Communication Technology (ICT) as defined by the Commission on Information and Communication Technology (CICT) is "the totality of electronic means to collect, store, process and present information to end-users in support of their activities". It consists, among others, of computer systems, office systems and consumer electronics, as well as network information infrastructure, the components of which include the telephone system, the Internet, fax machines and computers.

ICT Resources are equipment, knowledge and human resources used to support electronic business/manufacturing processes and the conduct of electronic commerce transactions. It includes computer and peripheral equipment, systems and application software, network channels, telecommunication equipment, routers, satellite and other ICT hardware used in electronic business and commerce transactions, ICT support services and ICT workers.

Network channel is a collection of computers connected to each other that allows them to communicate with each other, and share resources and information. All networks are made up of basic hardware building blocks to interconnect network nodes, such as Network Interface Cards (NICs), Bridges, Hubs, Switches, and Routers.

Internet is a global system of interconnected computer networks that interchange data by packet switching using the standardized Internet Protocol Suite (TCP/IP). It is a "network of networks" that consists of millions of private and public, academic, business, and government networks of local to global scope that are linked by copper wires, fiber-optic cables, wireless connections, and other technologies. The Internet carries various information resources and services, such as electronic mail, online chat, file transfer and file sharing, online gaming, and the inter-linked hypertext documents and other resources of the World Wide Web (WWW).

Intranet is a set of networks, using the Internet Protocol and IP-based tools such as web browsers and file transfer applications, that is, under the control of a single administrative entity. That administrative entity closes the intranet to all but specific, authorized users. Most commonly, an intranet is the internal network of an organization.

Extranet is a network or internetwork that is limited in scope to a single organization or entity but which also has limited connections to the networks of one or more other usually, but not necessarily, trusted organizations or entities (e.g. a company's customers may be given access to some part of its intranet creating in this way an extranet, while at the same time the customers may not be considered 'trusted' from a security standpoint).

Wide Area Network (WAN) is a computer network that covers a broad area (i.e., any network whose communications links cross metropolitan, regional, or national boundaries. Less formally, a WAN is a network that uses routers and public communications links. The largest and most well-known example of a WAN is the Internet. A WAN is a data communications network that covers a relatively broad geographic area (i.e. one city to another and one country to another country) and that often uses transmission facilities provided by common carriers, such as telephone companies.

Local Area Network (LAN) is a computer network covering a small physical area, like a home, office, or small group of buildings, such as a school, or an airport. Current LANs are most likely to be based on Ethernet technology. Each workgroup can get to its local printer. Note that the printers are not accessible from outside their workgroup.

E-commerce or electronic commerce refers to the sale of goods and services where an order is placed by the buyer, price and terms of sale are negotiated over the Internet Protocol-based networks, an extranet, Electronic Data Interchange (EDI) network, or other on-line system.

Web site is a collection of Web pages, images, videos or other digital assets that is hosted on one or more web servers, usually accessible via the Internet. All publicly accessible websites are seen collectively as constituting the "World Wide Web". The pages of a website can usually be accessed from a common root URL called the homepage, and usually reside on the same physical server.