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

1. 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

2. A g e n d a • Perspective on Digital Divide • Philippine Case • A Strategic Approach • Conclusion

3. P e r s p e c t i v e On Digital Divide

4. What is Digital Divide? • Gap between “info-rich” & “info-poor” • “info-rich” able to, “Info-poor” unable to tap opportunities presented by digital technology to achieve their economic, social & political goals • Unattended: Lead to widening gap

5. Causes of Digital Divide? • Lack of • Human capacity • Appropriate regulatory & policy regimes • Access to information/knowledge (content, delivery & Internet-enabled appliances)

6. Why Care About Digital Divide? • ICT Revolution: significantly contributed to world economic growth and progress; no reason developing nations cannot avail themselves of the benefits of ICT • Speed up work; break time/space barriers:higher productivity, greater capacity, broader reach, lower costs • Introduce new ways/lifestyles • Improve medical science/health care • Build skills/improve education • Foster investments, research • Improve governance/enhance culture • Empower individuals, communities, nations

7. Whose Concern is Digital Divide? • The Poor? Government? Private Sector? • Everyone’s concern: “Only by empowering the poor can the world foster peace & prosperity”

8. Digital Divide Indicators(Digital Divide Network) • Global (Global Internet Trends, 2001) • 6%, or 429 mm online (41% N. America; 27% Europe, M.E., Africa; 20% Asia Pacific; 4% S. America) • US has more computers than rest of world • US Commerce Dept. 2000: Internet access • 41.5% households; 46.1% White; 56.8% Asian American/Pacific Islanders; 23.5% Black; 23.6% Hispanic • 86.3% $75k p.a. +income; 12.7% <$15k & below • US Census: Internet access • 63% 18-49 yrs.; 37% 50 yrs. & older

9. Problem of Metrics • Can’t measure, can’t manage; Tele-density not enough; • Better metrics, better management • Developing nations must improve metrics: better identify/solve problems

10. P h i l. C a s e (Human Capacity)

11. Phil. Profile • 82 mm population; 7,000+ islands • Predominantly Malay & Catholic • Predominantly young (71% <35 yrs.) • Culturally diverse • Highly literate (94% literacy) • Filipino/English-speaking (73% English literacy) • Per capita GNP: $ 1,000 • 28.4% poverty incidence (15% rural; 41.4 rural)

12. ICT Readiness: Schools(Innotech) • 13.3% tel.; 2% Internet (MM: 92% tel.; 19% Internet) • 14.3 % computers (MM: 87.3%) • 18.2% IT-proficient staff (MM: 75.5%) • 13.3% school heads w/ ICT training (MM: 54.5%)

13. Govt. Initiatives • $ 12mm: train teachers, equip schools • PC’s for Public High Schools (20 PCs/1000 schools) • Open Learning/Distance Education Policy • Adopt-a-School Program

14. Phil. Case (Regulatory & Policy Regimes)

15. ITECC VISION

16. Government Initiatives • E-Commerce Law • ICT Commission • DICT Bill • ICT convergence

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

18. Observations • Digital divide exists (willingness to address problem) • General policies on digital divide; no specific policy/plan/legislation • Independent initiatives of govt. agencies • Need for comprehensive, unified, strategic approach to digital divide

19. Phil. Case (Access to Information)

20. Access to Information Access: content, delivery, appliances Access, 1st step; usage more important Content: digitize local content Delivery: upgrade to catch up Appliances: be more affordable; potential of smart phones

21. Liberalized Telecommunications • Before 1989: one major telco.; several local exchange carriers • End of 2000 • 77 Local Exchange Carriers (LECs) • 11 International Gateway Facilities (IGF) • 5 Cellular Mobile Telephone Systems (CMTS) • 15 paging companies • 11 international and domestic record carriers • 8 satellite VSAT operators • 156 Value Added Service (VAS) providers, including ISPs.

22. ICT Key Indicators: Phil. • Tel subscribers/100: 21.95 • Cellular mobile subscribers: 17.77 • Internet hosts/100: 3.93 • Internet users/100: 255.69 • PCs/100: 2.17 • Int’l Internet bandwidth, mbps: 237

23. Philippine Case: Findings • Young, literate, English-speaking; open to digital technology • Supportive regulatory & policy regimes ( specific policies/plans/legislation on digital divide needed) • Need better access to information, esp. outside Metro Manila (digitize/translate content, upgrade delivery systems, more affordable appliances) • Need for a unified, comprehensive & strategic approach

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

25. Basic Plan • Identify Sectors/SWOT Analysis • Vision/Mission/Goals • Principles/Strategies • Government/private sector-led? Comprehensive? Priorities? Accountabilities? Tasks sharing? Sustainable? Incentives? Int’l cooperation?

26. Capacity Building • Early & basic education, esp. for the disadvantaged sectors? • Computer literacy? • Open learning/distance education? • Roles of government, corporations, NGO’s?

27. Regulatory & Policy Regimes • ICT Champion? • Specific policy/plan on digital divide? Accountability? • Coordinated, unified programs? • Laws/Incentives addressing digital divide?

28. Access to Information • Program: digitize/translate files, esp. local content? • Upgrades on delivery systems? • Commercially unviable areas? • Sustainable programs? • Incentives/financing of access, esp. appliances? • Motivate use of access?

29. Conclusion • RP has human capacity, as well as regulatory & policy support to embrace digital technology • Improve access to information/knowledge, esp. outside Metro Manila (digitize local content,upgrade delivery, more affordable appliances) • Strategic, unified approach to address digital divide

30. THANK YOU !