Concept Paper: A Strategic Approach to Bridge the Digital Divide in the

Philippines

by: Renato C. Valencia Private Sector Co-Chair ITECC e-Government Committee

APT Regional Forum, Indonesia February, 2004

A g e n d a

• Perspective on Digital Divide• Philippine Case• A Strategic Approach• Conclusion

P e r s p e c t i v e

On Digital Divide

What is Digital Divide?

Gap between “info-rich” & “info-poor”

“Info-poor” unable to avail of opportunities presented by digital technology to achieve their economic, social & political goals

Unattended: Lead to widening gap

Causes of Digital Divide?

Lack of:

Human capacity

Appropriate regulatory & policy regimes

Access to information/knowledge

Why Care About Digital Divide?

ICT Revolution: significantly contributed to world economic growth and progress Broke time/space barriers: better efficiencies, higher

productivity, lower costs Introduced new ways/lifestyles Built skills/improved education Improved medical science/health care Improved governance/enhanced culture Fostered investments, research Empowered individuals, communities, nations

Digital Divide Indicators(Digital Divide Network)

Global (Global Internet Trends, 1st qtr, 2001) Only 6%, or 429 mm online (41% North America;

27% Europe, Middle East, Africa; 20% Asia Pacific, 4% South America)

US (Dept. of Commerce 2000) w/ computer: 51% (>rest of the world) w/ Internet access

56.8% Asian American/Pacific Islander; 46.1% White; 23.5% Black; 23.6% Hispanic

86.3% w/ $75k p.a. income; 12.7% w/ <$15k p.a. income

Whose Concern is Digital Divide?

The poor? Government? Private sector?

Everyone’s concern; the “haves” realize only by empowering the poor can the world foster peace & prosperity

Problem of Metrics

Can’t measure, can’t manage Tele-density not enough; Better metrics, better management Identify disadvantaged sectors;

quantify problem; provide viable solutions

P h i l i p p i n eC a s e

Human Capacity: Human Capacity: Phil. ProfilePhil. Profile

80 mm population in 7,000 islands Predominantly Malay & Catholic Predominantly young (71% <35 yrs.) Culturally diverse (54 ethnic groups, 111 local dialects, 8

principal; historically influenced by the Malays, Chinese,Spaniards, Americans)

94% literate (73% in English) Per capita GNP: $ 800 30% below poverty line

Human Capacity: Human Capacity: ICT Readiness ICT Readiness in Schoolsin Schools

ICT Readiness in Schools (INNOTECH, 2001; 45,811 schools; 79% response)

w/ electricity: 66.1%; w/o: 30.7% w/ tel.: 13.3%; fax: 2.9%; Internet: 2% (NCR: tel.-

92%; fax-50%;Internet-19%) w/ computers: 14.3% (NCR:87.3%) w/ IT-proficient staff: 18.2% (NCR-75.5%) School heads w/ ICT training, past 5 yrs.: 13.3%

(NCR: 54.5%)

Human Capacity: Human Capacity: Govt. Govt. InitiativesInitiatives

Govt. Initiatives:

$ 12mm: train teachers, equip schools (DECS)

Open Learning/Distance Education Policy (CHED)

Philippines ranked 7th in the Global Web-Quality Index

Also, ranked 6th in e-participation (measure of government’s willingness to interact with citizens over the net)

Regulatory & Policy Regimes

Regulatory and Regulatory and Policy Regimes: ITECC VISIONPolicy Regimes: ITECC VISION

Government Initiatives

• E-Commerce Law• ICT Commission• DICT Bill• ICT convergence

Philippine Report card [Carmichael Consulting, Aug., 2003]

FEATURE REMARKS ASSESSMENT

Policy Making ITECC good

ICT Policy Not fully developed good

ICT Dept DOTC, DTI, DOST fair

Regulation NTC good

Convergence Separate efforts fair

Govt. service limited Very good

Regulatory and Regulatory and Policy RegimesPolicy Regimes

ObservationsObservations

• Digital divide exists; willingness to address problem• No specific plan/policy on Digital Divide; Goals, resource

allocations, timetables tend to be hazy• Disparate initiatives

Access to InformationAccess to Information

CURRENT SITUATION

• Existing programs to un-served areas: only voice services

• Internet access: private sector internet café’s• Pilot tele-centers: widely dispersed,

uncoordinated, and limited scale• Content: minimal• Unsustainable

CATEGORIES/COUNTRIES IDN LAO MAL MMR PHIL SGP THA

TELEPHONE SUBSCRIBERS per 100 pop. 9.10 2.10 51.21 0.64 21.95 125.50 22.19

CELLULAR MOBILE SUBSCRIBERS per 100 pop. 5.50 1.00 34.88 0.03 17.77 79.14 26.04

INFORMATION TECHNOLOGY - Internet Hosts per 100 inhabitants 2.20 0.30 31.10 0.00 3.94 479.18 11.75 - Internet Users per 100 inhabitants 191.20 27.10 2731.10 2.07 255.69 5396.64 775.61 - Estimated PCs per 100 inhabitants 1.10 0.30 12.60 0.11 2.17 50.83 2.78

INT'L. INTERNET BANDWIDTH, Mbps (As of 2001) 313.00 2.00 733.00 2.00 237.00 2369.00 642.00

Source: ITU; (http://www.aseanconnect.gov.my)

SELECTED ASIAN ICT KEY INDICATORS

Philippine Case: Findings

• Young, literate, English-speaking, certain level of computer literacy: open to embrace digital technology

• Supportive regulatory & policy regimes• On access to information & knowledge

– Local content must be digitized/translated– Delivery/infrastructure good; un-served areas– Affordability & financing of appliances

• Need for specific, comprehensive, unified plan on digital divide

AS t r a t e g i c A p p r o a c h

Basic PlanBasic Plan

Identify sectors SWOT Analysis

Vision/Mission/Goals Principles/Strategies

Government/private sector-led?Comprehensive?Participants? Roles?Sustainable? Programs/plans of action? Accountability?

Human CapacityHuman Capacity

Early & basic education, esp. for the disadvantaged?

Computer literacy? Open learning/distance education? Roles of government, corporations,

NGO’s?

Regulatory & Policy Regulatory & Policy RegimesRegimes

Champion? Specific Plan on Digital Divide?

Accountable? Coordinated, unified programs?

Laws/incentives addressing digital divide?

Access to InformationAccess to Information

Specific program: digitize/translate files, esp. local content?

Community e-centers: extensive? viable? Commercially unviable areas?

Affordability/financing of access?

ConclusionConclusion

RP has human capacity, as well as regulatory & policy support to embrace digital technology

Must focus on access to information,knowledge

Need for strategic, unified approach to address digital divide in Phil.

THANK YOU !