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Digital Opportunity Index : 

Digital Opportunity Index Michael Minges TMG, Inc. 2007 Partnership Forum on Measuring Information Society Taipei International Convention Center, 26 October 2007

Digital Opportunity Index : 

Digital Opportunity Index History Results Comparability Recommendations

World Summit on the Information Society (WSIS) Plan of Action : 

World Summit on the Information Society (WSIS) Plan of Action 1. In cooperation with each country concerned, develop and launch a composite ICT Development (Digital Opportunity) Index.

Definitions : 

Definitions Digital “of or relating to data in the form of numerical digits” Opportunity “a good chance for advancement or progress” Index “a number (as a ratio) derived from a series of observations and used as an indicator or measure” 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. Source: www.webster.com

Problems with existing indexes : 

Problems with existing indexes Subjective Exclusive Poor choice of indicators Outdated / incorrect / missing data Opaque / unavailable methodology Limited analysis over time

Why an another ICT index? : 

Why an another ICT index? Almost all existing ICT indices concentrate primarily on developed economies Some do not use internationally comparable indicators and some have methodological snags or are susceptible to distortions due to the use of qualitative variables Most are not specifically targeted at measuring ICT access Wherever these indices use too many variables, transparency compromised

Human Development Index : 

Human Development Index “The human development index (HDI) is a composite index that measures the average achievements in a country in three basic dimensions of human development: a long and healthy life, as measured by life expectancy at birth; knowledge, as measured by the adult literacy rate and the combined gross enrolment ratio for primary, secondary and tertiary schools; and a decent standard of living, as measured by gross domestic product (GDP) per capita in purchasing power parity (PPP) US dollars. The index is constructed from indicators that are available globally using a methodology that is simple and transparent.” http://hdr.undp.org/hd

Partnership on Measuring ICT for Development : 

Partnership on Measuring ICT for Development Approved list of ICT indicators http://www.itu.int/ITU-D/ict/partnership/material/CoreICTIndicators.pdf

Indicators : 

Indicators Core DOI

Categories : 

Categories Opportunity Infrastructure Utilization

DOI structure : 

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.

DOI Timeline : 

DOI Timeline Dec- 03

DOI advantages : 

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 Defendable goalposts Time series – 2000-2005

DOI similar to Taiwan’s “e-Life” indicators : 

DOI similar to Taiwan’s “e-Life” indicators

Digital Opportunity Index (DOI), Taiwan, 2005 : 

Digital Opportunity Index (DOI), Taiwan, 2005

Taiwan, DOI, 2005 : 

Taiwan, DOI, 2005 Source: Adapted from DBAS, FIND, CHT, ITU. 42 countries>99% Norway = 0.1% Hong Kong, Switzerland = 0.2% Korea = 100% Korea = 33% Taiwan, Singapore = 98% Iceland = 89% Iceland = 84% Korea = 68% Denmark = 70% “GPRS subscriptions” Luxembourg = 142 24 countries > 100

Taiwan, DOI over time : 

Taiwan, DOI over time

Slide 18: 

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-mobile Household-fixed Distance / time from fixed line

Mobile DOI : 

Mobile DOI

Modular : 

Non e-indices (e.g., Human Development Index) Future core indicators (e.g., education, government, health, etc.) Core indicators on access and use of ICTs by households and individuals Core indicators on access and use of ICTs by businesses Modular

DOI extensions : 

DOI extensions Gender Age Regions

DOI compared to other e-indices : 

DOI compared to other e-indices

Infrastructure indicators & Asia : 

Infrastructure indicators & Asia Mobile per 100: Advanced Asian economies have low prepaid %, lower SIM cards per 100 but just as high household and individual usage of cellular International bandwidth: Not hubs likes US or Europe; more national content so less need for international bandwidth

Subjective data : 

Subjective data Source: WEF, World Bank.

Mobile InternetDefinitions : 

Mobile InternetDefinitions

Taiwan weakness in NRI : 

Taiwan weakness in NRI E-government readiness index (World rank: 121) Residential telephone monthly subscription (115) E-participation index(109) Lowest cost of broadband (100) Business monthly telephone subscription (99) Monthly broadband subscription charge (90) Cost of cellular phone call (80) Business telephone connection charge (74) Residential telephone connection charges (71) Number of procedures to start a business (69)

Doing Business (World Bank) vs.Business Environment (EIU) : 

Doing Business (World Bank) vs.Business Environment (EIU)

Recommendations : 

Recommendations Modular approach with agreement on different categories More attention to details of indicators Better quantification of non-numerical factors Methodologies and historical trends

Contact : 

Contact minges@tmgtelecom.com www.tmgtelecom.com