Digital context: Uruguay 2016 - BBVA Research€¦ · 3 Digital context: Uruguay Overview L •...

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Digital context: Uruguay

Digital Context:

Uruguay

NOVEMBER

2016

2


1 Digital scenario

2 Demand side

3 Supply side

4 Regulation side

• Overview

Outline

3


Overview

• Uruguay is better off than most Latin American countries in terms of the digitization index,

except for Chile

• Uruguay has room for improving ICT regulation and encouraging Internet use in enterprises

• Uruguay’s Internet use is close to developed countries, with a high frequency of use

• Home is the main place for Internet access and it is becoming even more so

• Lack of skills is considered the main barrier to Internet use; this

perception increases with age

• The use of e-banking and e-commerce is fairly widespread in

Uruguay, in both cases, it stands above 20%

• The fixed broadband monthly subscription charge in Uruguay is 17.9

USD, which is lower than in Spain (26.7 USD)

• 45.5% of Uruguay’s population has a mobile-broadband subscription

4


Digitization Index Digital scenario:

1

5


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

1.1. Structural Digitization Index, 2015

Peru

Mexico

Colombia

Uruguay Chile

United States

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

6


Affordability ICT Regulation Infrastructure

Individual use Enterprise use Content

PER CHL

MEX

OCDE

URY USA

GBR

00.10.20.30.40.50.60.70.80.9

1

PER URY MEX

CHL

OCDE USA

GBR

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

CHL URY

PER MEX OCDE

USA

GBR

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

PER MEX

USA

CHL OCDE

URY

GBR

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

URY MEX PER

OCDE

CHL USA

GBR

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

OCDE PER

MEX

USA CHL

GBR

URY

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

1.2. Digitization Index 2015: Dimensions

7


Demand side 2

8


0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2010 2013

Daily internet use Weekly internet use Monthly internet use

There are few differences between owning a mobile phone, computer or Internet

(%)

Frequency of Internet use ICT access and Internet use

Increasing

frequency

of Internet

use

2.1. Computer and Internet: Access at home and usage

Note: Use of Internet is in the last 3 months

0

10

20

30

40

50

60

70

80

Internet access Computeraccess

Mobile access Internet use

2010 2013

9


2.2. Internet access at home: Evolution across regions and income

0

10

20

30

40

50

60

70

80

90

100

MontevideoHigh

MontevideoMedium-High

MontevideoMedium

MontevideoMedium-Low

Periphery Litoral Norte Costa Este MontevideoLow

Centro Litoral Sur Norte

Household

s w

ith I

nte

rnet

access (

%)

2013 2010

AVERAGE 2013

Note: Montevideo is divided into six different levels: five depending on the level of income and one on its metropolitan area (Periphery)

10


0

10

20

30

40

50

60

16-24 25-34 35-44 45-59 +60

Lack of skills

Without a device to connect

Lack of necessity

(%)

Lack of skills is the main barrier for Uruguayans who do not use Internet

Barriers: perception by age

2.3. Internet access: Barriers

0

5

10

15

20

25

30

35

40

45

50

Lack ofnecessity

Lack of skills Without adevice toconnect

Too expensive Lack of utility

Non-I

nte

rnet

users

(%

)

2010 2013

Non-Internet users in 2013

Non-Internet users in 2010

Cost is the

least

important

barrier for

non-users

of the

Internet

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Home and work are gaining importance compared to other access points

2.4. Places for Internet access (last 3 months)

0

10

20

30

40

50

60

70

80

90

100

Home Work Education centre Community centre Private centre Others

2010 2013

+4.0 p.p. Internet use in 2010: Internet use in 2013:

65.8% 69.8%

Note: Options are not exclusive. Individuals can select more than one place

12


0

10

20

30

40

50

60

70

80

90

100

Leisure Communication Information Education E-government E-commerce E-banking

2010 2013

There are no changes in the preferences of Internet users between 2010 and 2013

2.5. Internet activities: Usage in the last 3 months

(%)

Most

popular

activities

Note: Options are not exclusive. Individuals can select more than one activity simultaneously

x 1.86 x 1.49

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2.6. E-banking: Evolution by geography and income

0

5

10

15

20

25

30

35

40

45

50

MontevideoHigh


MontevideoMedium

Periphery Litoral Sur Litoral Norte MontevideoMedium-Low

Costa Este Centro MontevideoLow

Norte

Inte

rnet

users

(%

)

2013 2010

AVERAGE 2013


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2.7. E-commerce: Evolution by geography and income

0

10

20

30

40

50

60

MontevideoHigh


MontevideoMedium

Periphery MontevideoMedium-Low

Litoral Sur Costa Este Centro MontevideoLow

Litoral Norte Norte

Inte

rnet

users

(%

)

2013 2010

AVERAGE 2013


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Internet

2.8. Geographical distribution in 2013: Usage in the last 3 months

E-banking E-commerce

High

Medium

Low

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2.9. Population characteristics: Internet use (%)

100 80 60 40 20 0 0 20 40 60 80 100

2010 2013

AGE

EDUCATION

EMPLOYMENT

GENDER

Primary

16-24

Tertiary

Unemployed

No studies

60+

Secondary

Student

Employed

35-44

25-34

Female

Male

45-59

Note: The differentiation of individuals according to their education levels varies between 2010 and 2013. This could affect the reported results.

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2.10. Population characteristics in 2013 (%)

E-banking E-commerce

0102030405060 0 20 40 60 80

Primary

16-24

University

Unemployed

No studies

60+

Secondary

Student

Employed

35-44

25-34

Female

Male

45-59

AGE

EDUCATION

EMPLOYMENT

GENDER

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Supply side 3

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3.1. Mobile situation

0

20

40

60

80

100

2005 2007 2009 2011 2013

Domestic mobile-telephone traffic (billions of minutes)

Mobile-cellular telephone subscriptions (per 100 inhabitants)

X 14.68 Uruguay

Spain

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

0.26 Uruguay, 2015

0.11 Spain, 2015

Uruguay 100%

Spain 99% 2013

Mobile population Coverage

0

0.2

0.4

0.6

0.8

1

1.2

2008 2009 2010 2011 2012 2013 2014 2015

On-net Spain Off-net Spain

On-net Uruguay Off-net Uruguay

020406080

100120140160180

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

160.20

107.90

20


Cable módem DSL Fibra

3.2. Fixed broadband

0.00

0.20

0.40

0.60

0.80

1.00

1.20

2008 2009 2010 2011 2012 2013 2014 2015

1 Mbit/s

Fixed broadband subscriptions (per 100 inhabitants)

28%

57%

Uruguay

2013

18%

77%

5%

Spain

2013

15%

Fibre DSL Cable modem

Fibre DSL Other connections

Fixed broadband speed, (in Mbit/s)

05

10152025303540

Spain Uruguay

Fixed broadband monthly

subscription charge

17.9 USD2015

Fixed broadband monthly

subscription charge

26.7 USD2015

0

5

10

15

20

25

30

Uruguay Spain

2010 2015 2010 2015

X 2.31 X 1.23

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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

3.3. Wireless broadband

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

Around 99% of total wireless broadband subscriptions correspond to mobile-broadband type

0

10

20

30

40

50

60

70

80

Uruguay Spain2010 2013 2010 2013

Uruguay Spain

46.0%

67.2%

24.1%

13.9%

0

10

20

30

40

50

60

70

80

Uruguay Spain

23.8%

10,1

%

13.4%

Uruguay Spain

45.5%

66.8%

2010 2013 2010 2013

X 3.3

X 2.8

X 3.4

X 2.8

22


5269

660

6323

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

2010 2014 2010 2014

Note: Values inside bars represent total investment in millions of USD

3.4. Annual investment in telecommunication services

Annual investment in telecommunication services (millions of USD, % GDP)

Uruguay Spain

X 1.24

X 0.79

583

23


Regulation side 4

24


DNK

FIN

FRA

DEU

ITA ESP

GBR

USA

ARG

BRA

CHN

COL

IND

MEX

PER

SGP

TUR

URY

VEN

0

10

20

30

40

50

60

70

80

90

100

0 1 2 3 4 5 6 7S

oft

ware

piracy r

ate

, %

soft

ware

insta

lled

Laws relating to ICT, 1-7 (best)

DNK

FIN

FRA

DEU

ITA

ESP

GBR

USA

ARG

BRA

CHN

COL

IND

MEX

PER

SGP

TUR

URY

VEN

0

1

2

3

4

5

6

7

0 1 2 3 4 5 6 7

Eff

icie

ncy o

f le

gal fr

am

ew

ork

in c

halle

ngin

g r

egs,

1-

7

Laws relating to ICT, 1-7 (best))

4.1. ICT laws: Efficiency and Piracy

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

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

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4.2. Ease of doing business & entrepreneurship

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

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

0 2 4 6 8 10 12 14 16

ArgentinaEl SalvadorGuatemala

BoliviaAustriaMexico

JamaicaCosta Rica

TurkeyCanada

GermanyColombia

Korea, RepPeru

BrasilSpain

UruguayChile

United KingdomAustralia

No. new firms per 1,000 workers

AUS

CHL

DNK

FIN

FRA

DEU

ITA

NOR

ESP

SWE

KOR GBR SGP

MEX

COL PER TUR

MLT

ARG BRA

IND

URY

0

20

40

60

80

100

120

140

160

0 5 10 15 20

Ease o

f doin

g b

usin

ess R

ankin

g

No. new firms per 1,000 workers

26


Uruguay 4.0

Median 3.7

4.3. Political and regulatory environment

Weak

Medium

High

No 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.

The political and

regulatory

environment of

Uruguay is similar

to the global

median, but above

it

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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 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: EUTIC

Survey elaborated by the National Statistics Institute of Uruguay (INE) for 2010 and

2013

This is a special study for households and individuals on the Use of Information

Technology and Communications (EUTIC) in Uruguay

The main objective is to measure the coverage, access and use of information and

communications technology in households and by individuals

The sample size is composed of 4,183 distributed households, 47% in Montevideo,

11% in the Periphery and 42% in the urban Interior, those resident in towns of 5,000

or more. This sample comprises a total of 7,424 people aged 6 years and older. The

total sample size and stratum is determined so as to obtain the desired precision and

confidence in the estimation of some primary interest parameters at the level of sub-

universes to be investigated

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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

Mauro N. Acuña Víctor Adame Javier Alonso Alfonso Arellano Noelia Cámara Rosa Mª Oliveros Lucía Pacheco

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

Argentina Gloria Sorensen Chief Economist

Marcos Dal Bianco María Celeste González Adriana Haring Jorge Alberto Lamela Juan Manuel Manías

mailto:[email protected]

mailto:[email protected]

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