Digital Context: Chile JUNE - BBVA Research · 2018-09-14 · Digital Context: Chile 3 Overview...

Digital Context: Chile

1

Chile

JUNE

2016

Digital Context


2

1 Digital scenario

2 Demand side

3 Supply side

4 Regulation side

• Overview

Outline


3

Overview

• Chile’s digital status is similar to some developed countries, such as Spain and Luxembourg

• Increasing number of people are using internet and with higher frequency

• Mobile devices are gaining momentum to access internet

• High cost is the main barrier to access internet for the 48% of households

without internet, particularly for younger ones

• Older individuals cite lack of skills and lack of necessity as the main

barriers for internet use

• Number of mobile broadband subscriptions have increased 4 times

• Around 60% of the investment in telecommunication services is dedicated to

mobile communications

• ICT-related laws have a positive relationship with legal system efficiency

and negative with piracy rate


4

Digitization Index Scenario:

1


5

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

1.1. Structural digitization Index in 2015

The index comprises the measure of infrastructure level indicators, adoption and use of technologies, costs and regulatory conditions

0.00

0.25

0.50

0.75

1.00

USA

Chile

Mexico Peru


6

1.2. Structural digitization Index in 2015: By dimension

0.00

0.25

0.50

0.75

1.00

Affordability ICT Regulation Infrastructure

0.00

0.25

0.50

0.75

1.00

0.00

0.25

0.50

0.75

1.00

CHL MEX TUR GBR

ARG

MEX

CHL

SGP

CHL PER MEX

HKG

Individual usage Enterprises usage Content

0.00

0.25

0.50

0.75

1.00

0.00

0.25

0.50

0.75

1.00

0.00

0.25

0.50

0.75

1.00

MEX

TUR CHL

GBR

MEX COL

CHL

GBR

BGD

TUR

MEX

CHL


7

Demand side 2


8

0

10

20

30

40

50

60

70

80

90

2000 2003 2006 2009 2011 2013

Internet use Daily use Weekly use

(%)

Internet use frequency (%)

Higher growth in mobile phone access than computer

2.1. Computer and internet: Access at home and usage

Increasing

frequency

of internet

use

TIC access and internet use

0

10

20

30

40

50

60

70

80

90

2000 2003 2006 2009 2011 2013

Internet access Computer accessMobile access Internet use


9

0

10

20

30

40

50

60

Ma

galla

nes

Anto

fag

asta

Me

tropo

lita

na

Valp

ara

iso

Tara

pa

cá

Aysén

Copia

po

Arica

De

l Lib

ert

ado

r

Bío

-Bío

Coqu

imbo

Los L

ag

os

Los R

íos

Ara

uca

nia

Ma

ule

Pe

rce

nta

ge

of

ho

use

ho

lds w

ith

in

tern

et a

cce

ss

2013 2011

AVERAGE 2013

2.2. Internet access at home: Evolution across states


10

0

10

20

30

40

50

60

70

80

90

Lack ofnecessity

High cost Lack ofskills

Security Privacity Nocoverage

Pe

rcen

tage

of

ho

use

ho

lds w

ith

ou

t in

tern

et a

cce

ss

2006 2013

The high cost is the main barrier to access internet for households

0

10

20

30

40

50

60

70

80

0 1 2 3 4 5

%

Coste elevado Sin necesidad Falta de habilidad

16-24 25-44 45-64 +65

Households without internet access in 2013

High cost

Barriers perception by age

2.3. Internet access barriers at home

Lack of

necessity Lack of skills

Households without internet access in 2006

The

percentage of

individuals

with internet

access

problems has

decreased


11

41.6% 58.0%

43,7% 34,0% 52,4%

10,3%

28,0%

2009 2013

Level of internet use Level of internet use

61.1% 13.1%

15.3%

7.9% 73.1%

7.7%

8.6%

5.7%

2.4. Places for Internet use

People mostly access internet at home

Home Work Education centre Community telecentre Private centres Others


12

0

10

20

30

40

50

60

70

80

90

100

Información Comunicación Ocio Educación Trámites conEstado

Comercioelectrónico

Banca electrónica

2011 2013

(%)

E-banking and e-commerce increase their share among internet activities

2.5. Internet activities: usage in last twelve months

Most

popular

activities (%)

0

10

20

30

40

50

60

70

80

90

100

Information Communication Leisure Education Government E-commerce E-banking

2011 2013

0

5

10

15

20

25

30

2006 2009 2011 2013

E-banking E-commerce

x 3.4 x 3.8



13

0

5

10

15

20

25

30

35

Me

tropo

lita

na

Anto

fag

asta

Aysén

Valp

ara

iso

Ma

galla

nes

Tara

pa

cá

Los R

íos

Los L

ag

os

Coqu

imbo

Ara

uca

nia

Ma

ule

Copia

po

Bío

-Bío

Del Lib

ert

ado

r

Arica

Pe

rcen

tage

of

inte

rne

t u

se

rs

2013 2011

AVERAGE 2013

2.6. E-banking: Evolution across states


14

0

5

10

15

20

25

30

35

Me

tropo

lita

na

Aysén

Arica

Anto

fag

asta

Los R

íos

Tara

pa

cá

Valp

ara

iso

Los L

ag

os

Ma

ule

Copia

po

Ara

uca

nia

Ma

galla

nes

Coqu

imbo

Bío

-Bío

Del Lib

ert

ado

r

Pe

rcen

tage

of

inte

rne

t u

se

rs

2013 2011

2.7. E-commerce: Evolution across states

AVERAGE 2013


15

E-banking E-commerce Internet

2.8. Geographical distribution in 2013: usage in the last year

High

Medium-high

Medium-low

Low

There is heterogeneity within the country in terms of internet use, e-banking and e-commerce. However

differences across regions are minor


16

100 90 80 70 60 50 40 30 20 10 0 0 10 20 30 40 50 60 70 80 90 100

Student

16-24

Unemployed

Primary

Tertiary

65 +

Quintile 1

Quintile 2

Quintile 4

Occupied

Secondary

No studies

45-64

25-44

Quintile 5

Quintile 3

2011 2013

EMPLOYMENT

EDUCATION

AGE

GENDER

INCOME

2.9. Population characteristics: Internet use (%)

Female

Male


17

2.10. Population characteristics in 2013 (%)


0 10 20 30 40 50

Quintil 1

Quintil 2

Quintil 3

Quintil 4

Quintil 5

16-24

25-44

45-64

65 +

Sin estudios

Primaria

Secundaria

Terciaria

Estudiante

Empleado

Desempleado

Hombre

Mujer

0 10 20 30 40 50 60

Quintil 1

Quintil 2

Quintil 3

Quintil 4

Quintil 5

16-24

25-44

45-64

65 +

Sin estudios

Primaria

Secundaria

Terciaria

Estudiante

Empleado

Desempleado

Hombre

Mujer

EMPLOYMENT

EDUCATION

AGE

GENDER

INCOME

0 20 40 60

Quintile 1

Quintile 2

Quintile 3

Quintile 4

Quintile 5

16-24

25-44

45-64

65 +

No studies

Primary

Secondary

Tertiary

Student

Occupied

Unemployed

Male

Female

0 20 40 60

Quintile 1

Quintile 2

Quintile 3

Quintile 4

Quintile 5

16-24

25-44

45-64

65 +

No studies

Primary

Secondary

Tertiary

Student

Occupied

Unemployed

Male

Female


18

Supply side 3


19

0

10

20

30

40

50

60

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

0.0

0.2

0.4

0.6

0.8

1.0

1.2

2008 2009 2010 2011 2012 2013 2014

0

20

40

60

80

2005 2006 2007 2008 2009 2010 2011 2012 2013

3.1. Mobile situation

Mobile-cellular telephone subscriptions (millions) Domestic mobile-telephone traffic (billions of minutes)

X4 Chile

Spain

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

Spain 99%

Chile 95%

Mobile population Coverage

0.32 CHILE, 2014

0.15 SPAIN, 2014

2012

On-net Chile

On-net Spain Off-net Spain

Off-net Chile

50.76

23.68


20

0

2

4

6

8

10

12

14

Chile Spain

44%

4%

51%

DSL Fibra Cable módem

3.2. Fixed broadband

Chile 2013

77%

5%

18%

DSL Fibra Cable módem

Chile Spain

Fixed broadband monthly

subscription charge

43 USD2014

Fixed broadband monthly

subscription charge

36 USD2014

Fixed broadband speed, (in Mbit/s)

Fixed broadband subscriptions (millions)

0

1

2

3

4

5

6

7

2008 2009 2010 2011 2012 2013 2014

Chile Spain

5

1

2005 2013 2005 2013

Chile Spain

X 3 X 2

0

20

40

60

80

2008 2009 2010 2011 2012 2013 2014

Spain 2013

Fibre modem

Fibre modem


21

0

5

10

15

20

25

30

35

Chile Spain

0

5

10

15

20

25

30

35

Chile Spain

35.66

67.16

24.07

66.85

23.81

35.59

Note: numbers inside the bars show nº subscriptions per 100 inhabitants

3.3. Wireless broadband

Total wireless broadband subscriptions (millions) Mobile-broadband subscriptions (millions)

2010

Chile Spain

X4

X 3

2013 2010 2013 2010

Chile Spain

2013 2010 2013

X4

X 3


22

41%

58%

Chile

Spain

Fixed-telephone

Internet

Mobile communication

3.4. Annual investment in telecommunication services

2006 2011 2013

2,787

Millions USD

X 1.4 Between

2006-2013

5,159

Millions USD

X 0.7 Between

2006-2013

3,356 Millions USD

5,370 Millions USD

41%

78%

43% 34%

23%

1,972 Millions USD

7,729 Millions USD

10%

36% 54%

57%

30%

12%


23

Regulation side 4


24

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

Eff

icie

ncy o

f le

ga

l syste

m in

ch

alle

ngin

g

regs,

1-7

(b

est)

Laws relating to ICTs, 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

oft

wa

re p

ira

cy r

ate

, %

so

ftw

are

insta

lled

Laws relating to ICTs, 1-7 (best)

4.1. ICT laws: Relation with Efficiency and Piracy

High income OECD countries (Chile is highlighted in green)

Rest

Source: BBVA Research & World Economic Forum Source: BBVA Research & World Economic Forum


25

0 2 4 6 8 10 12 14 16

ArgentinaEl SalvadorGuatemala

BoliviaAustriaMexico

JamaicaCosta Rica

TurkeyCanada

GermanyColombia

Korea, RepPeru

BrazilSpain

UruguayChile

United KingdomAustralia

No. New Firms per 1,000 workers

ARG BRA

COL

IND

MLT

MEX

PER

SGP

TUR

AUS

CHL

DNK FIN

FRA DEU

ITA

KOR

NOR

ESP

SWE GBR 0

20

40

60

80

100

120

140

160

180

200

0 5 10 15 20

Ea

se

of d

oin

g b

usin

ess R

an

kin

g

No. new firms per 1,000 workers

4.2. Ease of doing business & entrepreneurship

High income OECD countries (Chile is highlighted in green)

Rest

Source: BBVA Research & Doing Business (World Bank Group) Source: Doing Business (World Bank Group)


26

Chile 4.3 Median 3.7

Weak

Medium

High

No data

Weak

Medium

High

No data

4.3. Political and regulatory environment


27

Appendices 5


28

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 used the Internet in the

last 12 months.

how widely used are virtual social networks in the

country.

What extent do businesses use ICTs for transactions

with other businesses in the country?

What extent do businesses use 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 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 ICTs (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 government’s 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


29

Survey carried out by the Government of Chile since 1985, with a biennial and

triennial basis. The survey provides statistical information where it is possible to

determine the availability and use of ICT in Chile

This survey is mandated by the Ministry of Planning and Cooperation

(MIDEPLAN) and it is characterized by measuring the socioeconomic conditions

of households in the country, in terms of access to health, education, work and to

housing conditions. CASEN survey is also widely used by other ministries and

public services for the design and evaluation of policies and programs

Source of data from the Demand Side: CASEN


30

The World Telecommunication/ICT Indicators database contains time series data

for the years 1960, 1965, 1970 and annually from 1975 to 2014. 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, 2015)


31

Financial Inclusion David Tuesta Lead Economist

Víctor Adame Javier Alonso Alfonso Arellano Noelia Cámara Rosa Mª Oliveros Lucía Pacheco Mª Luisa Pérez

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

Chile Jorge Selaive Chief Economist Aníbal Antonio Alarcón Cristóbal Gamboni Hermann Esteban González Fernando Soto

Digital Context: Chile JUNE - BBVA Research · 2018-09-14 · Digital Context: Chile 3 Overview...

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Transcript of Digital Context: Chile JUNE - BBVA Research · 2018-09-14 · Digital Context: Chile 3 Overview...