Contexto digital: Paraguay 2017 - BBVA Research2 Contexto digital: Paraguay . 1 Digital scenario 2...

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Contexto digital: Paraguay

Digital Context:

Paraguay

MARCH

2017

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1 Digital scenario

2 Demand side

3 Supply side

4 Regulation side

• Overview

Outline

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Overview • Paraguay has room for improving in terms of the Digitization Index, particularly on

affordability and content dimensions • Paraguay almost duplicates Internet use between 2011 and 2014, but it is still lower than

other Latin American countries • Mobile phone is the most important device to access Internet

• The use of e-banking and e-commerce is limited in Paraguay. It is not larger than 4% in both cases.

• The prices of one minute call in Paraguay are lower than in developed countries

• 39.23% of Paraguay’s population has a mobile and wireless broadband subscription in 2015

• Paraguay shows a high piracy rate and a low efficiency of the legal system

• The political and regulatory environment of Paraguay is below the global median

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Digitization Index Digital scenario: 1

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1.1. Structural Digitization Index, 2015

The index is made up of indicators related to the level of infrastructure, ICT adoption and usage, costs and regulation conditions

Algeria Qatar Nigeria Pakistan Bangladesh Paraguay India Venezuela

Vietnam Peru Argentina Egypt Ukraine Greece Philippines Indonesia

Morocco Thailand Mexico Sri Lanka Italy Poland Bulgaria Cyprus

China Saudi Arabia Croatia Colombia Slovenia Kazakhstan Russian Federation Slovak Republic

Hungary Turkey Romania Uruguay Luxembourg Brazil Czech Rep. South Africa

Ireland Chile United Arab Emirates Belgium Spain Singapore Austria Portugal

Germany Malaysia Denmark Latvia Canada Australia France United States

Sweden Netherlands Finland Lithuania Korea, Rep. Japan Estonia Hong Kong SAR United Kingdom

Paraguay

Peru

Argentina Mexico Colombia

Chile

United States

0,0

0,1

0,2

0,3

0,4

0,5

0,6

0,7

0,8

0,9

1,0

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1.2. Digitization Index 2015: Dimensions

Nota: En el indicador de infraestructura, si se consideraran variables más relacionadas con Internet como cobertura 3G o cantidad de servidores seguros de Internet en el país, la posición de Paraguay mejoraría y sobrepasaría a la de países como México o Perú.

PRY PER

CHL ARG OCDE

URY USA

GBR

00,10,20,30,40,50,60,70,80,9

1

PRY ARG

PER URY

MEX

CHL OCDE USA

GBR

00,10,20,30,40,50,60,70,80,9

1

PRY ARG URY

PER MEX

OCDE USA

GBR

00,10,20,30,40,50,60,70,80,9

1

PRY PER

MEX

USA ARG OCDE

URY

GBR

00,10,20,30,40,50,60,70,80,9

1

PRY ARG

MEX PER

OCDE CHL

USA

GBR

00,10,20,30,40,50,60,70,80,9

1

PRY

ARG OCDE

PER MEX

USA

CHL GBR

URY

00,10,20,30,40,50,60,70,80,9

1

Affordability ICT Regulation Infrastructure

Individual use Enterprise use Content

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Demand side 2

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Significant increase in Internet access and Internet use between 2011 and 2014

2.1. Computer and Internet: access at home and usage ICT access and Internet use

Note: use of Internet over the last 3 months.

18,6 p.p. Internet use in 2011 Internet use in 2014

22,83% 41,43%

0

10

20

30

40

50

60

70

80

90

100

Internet access Computer access Mobile access Internet use

(%)

2011 2014

9


0%

10%

20%

30%

40%

50%

60%

70%

Asunción Central Alto Paraná Itapúa Caaguazú San Pedro Resto

Inte

rnet

use

rs

2011 2014

2.2. Internet use: evolution by geographies

Average 2014

Asunción, Central and Alto Paraná are the departments with higher Internet use

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2.3. Places for Internet access (last 3 months)

Smartphones become the favorite option to access Internet in 2014

Note: % over Internet users. Use of Internet over the last 3 months

0

10

20

30

40

50

60

70

80

90

100

Home Work Smartphone Education centre Public centre Other

(%)

2011 2014

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2.4. Internet activities: usage over last 3 months

Social Networks and Instant Messaging are the most popular activities among Internet users

Most popular

activities

Note: % over Internet users.

0

10

20

30

40

50

60

70

80

90

SocialNetworks

InstantMessaging

Telephone oremail

communication

Information Education Games,videos, movies

E-Commerce E-banking Other

(%)

2014

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2.5. E-commerce and e-banking

Use of e-banking and e-commerce in Paraguay shows very moderate results The percentages have declined between 2011 and 2014, especially, because of the increase of the number of Internet users (it has been higher than the growth in e-commerce and e-banking users)

Note: % over Internet users.

0,0%

0,5%

1,0%

1,5%

2,0%

2,5%

3,0%

3,5%

E-commerce E-banking

2011 2014

13


High

Medium

Low

Internet use Internet use in Smartphone

2.6. Geographical distribution in 2014: usage over the last 3 months

Note: "High" is above average, "Medium" around average and "Low" is below average. % over total population. Boquerón and Alto Paraguay departments are not included in the EHP 2014 survey.

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Social Networks Instant Messaging

2.6. Geographical distribution in 2014: usage over the last 3 months

Note: "High" is above average, "Medium" is around average and "Low" is below average. % over Internet users. Boquerón and Alto Paraguay departments are not included in the EHP 2014 survey.

High

Medium

Low

The averages for social networks and instant messages are 83% and 69%, respectively These figures are calculated over the total number of Internet users

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AGE

DENSITY

INCOME

GENDER

2.7. Population characteristics: Internet and smartphone use (%)

Note: % over total population.

Smartphone Internet use

0 20 40 60 80 100

Male

Female

18-24

25-34

35-44

45-64

+65

Quintile 1

Quintile 2

Quintile 3

Quintile 4

Quintile 5

Urban

Rural

020406080100

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Supply side 3

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0

0,2

0,4

0,6

0,8

1

1,2

2008 2009 2010 2011 2012 2013 2014 2015

On-net Paraguay Off-net ParaguayOn-net Spain Off-net Spain

0

20

40

60

80

100

120

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

3.1. Mobile situation Domestic mobile-telephone traffic (billions of minutes)

Mobile-cellular telephone subscriptions (per 100 inhabitants)

Paraguay

Spain

Tariffs: Mobile-cellular prepaid-1 min call (USD)

Spain 99.8%

Paraguay 99.7%

2013

Mobile population coverage

108.20

105.40

0.04 Paraguay, 2015

0.11 Spain, 2015

0

20

40

60

80

100

2010 2011 2012 2013 2014 2015

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1.39%

23.07%

3.14%

28.69%

0

5

10

15

20

25

30

35

3.2. Fixed broadband

Fixed broadband subscriptions (per 100 inhabitants)

Fixed broadband speed (in Mbit/s)

28% 57

%

18%

77%

5%

15%

Paraguay 2014

17%

70%

13%

Spain 2014

Fixed broadband monthly subscription charge 28.63 USD2015

Fixed broadband monthly subscription charge 26.71 USD2015 X 2.27

X 1.24

2010 2015

Paraguay Spain

2010 2015

39%

53%

8%

Cable modem DSL Fibre 0

10

20

30

40

2008 2009 2010 2011 2012 2013 2014 2015

Spain Paraguay

0,0

0,2

0,4

0,6

0,8

1,0

1,2

2008 2009 2010 2011 2012 2013 2014 2015

Spain Paraguay

1 Mbit/s

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24.07%

3.65%

83.03%

39.23%

0

10

20

30

40

50

60

70

80

90

Spain Paraguay2010 2015 2010 2015

23.81%

2.71%

82.69%

39.23%

0

10

20

30

40

50

60

70

80

90

Spain Paraguay

3.3. Wireless broadband Total wireless broadband subscriptions (%) Mobile-broadband subscriptions (%)

67.2% 10.1% 13.9%

2010 2015

Spain Paraguay Spain Paraguay

X 3.45

X 10.73 X 14.50

X 3.47

2010 2015

Note 1: The numbers inside the bars show number of subscriptions per 100 inhabitants Note 2: The total wireless broadband subscriptions indicator is composed of satellite, terrestrial fixed wireless and mobile broadband subscriptions

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Regulation side 4

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4.1. ICT laws: Efficiency and Piracy

High income OECD countries Rest (Paraguay is highlighted in green)

Source: BBVA Research & World Economic Forum

ARG

BRA

CHL CHN

COL

DNK

FIN

FRA

DEU

IND

ITA

MEX

PER

SGP

ESP TUR

GBR

USA

VEN

0

1

2

3

4

5

6

0 1 2 3 4 5 6 7

Effi

cien

cy o

f leg

al s

yste

m in

cha

lleng

ing

regs

, 1-7

(b

est)

Laws relating to ICT, 1-7 (best)

CHL

FIN

FRA

DEU

ITA

LUX NOR

ESP

GBR

USA

BRA

CHN

COL

IND MEX

PER

SGP

TUR

VEN

0

10

20

30

40

50

60

70

80

90

100

0 1 2 3 4 5 6 7S

oftw

are

pira

cy ra

te, %

sof

twar

e in

stal

led

Laws relating to ICT, 1-7 (best)

URY ARG

PRY

URY

PRY

Source: BBVA Research & World Economic Forum

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Paraguay 2.6

Median 3.7

The political and regulatory

environment of Paraguay is below the global median

4.2. Political and regulatory environment (1-7 best) Weak Medium HighNo data

Weak Medium High No data

Source: BBVA Research & World Economic Forum, 2015

Note: In order to measure the political and regulatory environment, indicators such as ICT-related laws, piracy rates, efficiency of legal system and protection of intellectual property are taken into account.

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Appendices 5

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Composition of the Digitization Index

Users adoption

Firms adoption

Infrastructure Cost

Regulation

Content

Fixed (wired)-broadband speed, in Mbit/s. International Internet bandwidth. It is measured in

bits per second per Internet users. Percentage of total population covered by a mobile

network signal. International Internet bandwidth in megabits per

second (Mbit/s).

Active mobile-broadband subscriptions. Fixed (wired)-broadband subscriptions. Mobile telephone subscriptions Percentage of households with Internet access at

home. Proportion of individuals that have used the Internet in

the last 12 months. how widely used are virtual social networks in the

country.

What extent do businesses use ICT for transactions with other businesses in the country?

What extent do businesses use the Internet for selling their goods and services to consumers in the country?

What extent do businesses adopt new technology in the country?

[1 = not at all; 7 = to a great extent]

Monthly subscription charge for fixed (wired) broadband Internet service (PPP $). Fixed (wired) broadband is considered to be any dedicated connection to the Internet at downstream speeds equal to, or greater than, 256 kilobits per second, using DSL.

How developed are your country’s laws relating to the use of ICT (e.g., electronic commerce, digital signatures, consumer protection)?

[1 = not developed at all; 7 = extremely well-

developed]

The Government Online Service Index assesses the quality of governments’ delivery of online services on a 0-to-1 (best) scale. There are four stages of service delivery: Emerging, Enhanced, Transactional and Connected. In each country, the performance of the government in each of the four stages is measured as the number of services provided as a percentage of the maximum services in the corresponding stage.

Users adoption

Infrastructure

Firms adoption

Regulation

Cost

Content

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Source of data from the Demand Side: EPH

The survey is elaborated by the General Directorate of Statistics, Surveys and Censuses of Paraguay for the years 2011 and 2014. The objective of the Permanent Household Survey (EPH) is to investigate the economic activity of individuals based on their socio-demographic characteristics. It also provides information on the characteristics of housing, access to basic services and goods possession.

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The World Telecommunication/ICT Indicators database contains time series data for the years 1960, 1965, 1970 and annually from 1975 to 2015. These data are available for over 200 economies, however the availability of data for the different indicators and years can vary

The data are collected from an annual questionnaire sent to official economy contacts, usually the regulatory authority or the ministry in charge of telecommunication and ICT. Additional data are obtained from reports provided by telecommunication ministries, regulators and operators and from ITU staff reports

Source of data from the Supply Side: World Telecommunication/ICT Indicators database (ITU, 2016)

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Financial Inclusion David Tuesta Lead Economist

Javier Alonso Alfonso Arellano Noelia Cámara Hicham Ganga Rosa Mª Oliveros Lucía Pacheco

For further information, please contact [email protected] or [email protected]

mailto:[email protected]

mailto:[email protected]

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