Date Released: December 3, 2003
2002 SURVEY OF INFORMATION
AND COMMUNICATION TECHNOLOGY (SICT)
OF PHILIPPINE BUSINESS AND INDUSTRY
HIGHLIGHTS
(Establishments with Average Total Employment of 20 and over)
I. ACCESS AND AVAILABILITY OF ICT RESOURCES
The following items on access and availability of ICT resources will give indication of the extent of the digital divide among Philippine businesses and industries with average total employment (ATE) of 20 and over for the year 2001. Digital divide refers to the disparity between those who have use of and access to information and communication technology (ICT) and those who have no access at all.
In 2001, the proportion of ICT users was highest in sectors with ICT industries, ranging from nearly 90 percent to as high as 100 percent. These were ICT sectors of telecommunications (I*), computer and related services (K*), and motion picture, radio and TV (O*) with 100 percent usage; ICT wholesale and retail trade (G*), 96.6 percent; ICT education (M*), 93.7 percent; and ICT manufacturing (D*), 88.6 percent. (Table 1.0)
The proportion of ICT users in non-ICT industries in these same sectors was also high, from nearly 80 percent to about 90 percent.
There were also non-ICT sectors that exhibited high usage of ICT resources: financial intermediation (J), 96.6 percent; construction (F), 94.8 percent; electricity, gas and water (E), 93.2 percent; and health and social work (N), 92 percent. (Table 2.0)
The proportion of ICT users was lowest in the primary sectors: agriculture (A), fishing (B), and mining and quarrying (C).
A. Percentage of ICT Users
The percentage of ICT users is measured as the proportion of the total number of establishments using any or all types of ICT resources to the total number of responding establishments. The figures give a rough indication of ICT diffusion in businesses and industries. In the survey, ICT resources is defined to include machines and knowledge.
Figure 1 shows that the diffusion of IC technologies in businesses and industries varied from sector to sector. (Refer to Section III.B of the Technical Notes for sector coverage.)
(For composition of ICT industries by sector, refer to Section III.A of the Technical Notes.)
Users of ICT resources in many sectors, whether with ICT or non-ICT industries, reported 100 percent usage of computers, except in agriculture (A), fishing (B), and transport, storage and communications (I and I*). These sectors made intense use of network channels/ telecommunication equipment than computers. (Tables 1.1 and 2.1)
B. Percentage of Computer Users
The classification of an ICT User may be used interchangeably with a Computer User for some sectors. Percentage of computer users is the proportion of the number of personal computer (PC) users to the total number of ICT users.
Statistics in Figure 2 show that:
Sectors with ICT industries, except wholesale and retail trade, accounted for big shares of the total number of PCs in use. ICT education (M*) reported the most number of computers owning 35 percent of all computers. This was followed by ICT manufacturing (D*), contributing 10.4 percent; telecom-munications (I*), 8.5 percent; and computer and related services (K*), 3.6 percent. (Table 1.1)
Among sectors with non-ICT industries, the most number of PCs in use were in financial intermediation (J), accounting for 14.5 percent; manufacturing (D), 10.6 percent; real estate, renting and other business activities (K), 3.1 percent; and wholesale and retail trade and repair services (G), 3.1 percent. (Table 2.1)
C. Number of Computers in Use
Statistics in Figure 3 show that:
ICT industries had higher average number of PCs per user-establishment compared to non-ICT industries of the same sector, except for the wholesale and retail trade (G*).
Among sectors with ICT industries, telecommunications (I*) had the highest number at 170 PCs per establishment followed by computer and related services (K*) at 108. ICT education (M*) had an average of 102 PCs per school. (Table 1.1)
Establishments in financial intermediation (J), a non-ICT sector, had the highest average number of PCs at 435 each. This figure is more than twice the highest average number of PCs used in ICT sector of telecommunications (I*). (Table 2.1)
Electricity, gas and water (E) was also a heavy user of ICT resources with 106 PCs per establishment.
D. Average Number of Computers by Sector
Figure 4 shows that:
All sectors with ICT industries reported high rates of usage of network channels, ranging from over 70 percent to 100 percent. Telecommunications (I*) and motion picture, radio and TV (O*) reported 100 percent usage, while ICT wholesale and retail trade (G*) and computer and related services (K*) reported over 90 percent usage of network channels. (Table 1.2)
For non-ICT sectors of education (M); transport, storage and communication (I); construction (F); agriculture (A), fishing (B) and mining and quarrying (C), the usage of network channels was about 70 percent and lower. (Table 2.2)
E. Percentage of Network Channel Users
Percentage of network channel users is the proportion of the number of users of network channels to the number of ICT users.
Statistics in Figure 5 show that:
ICT industries, except those in manufacturing, had relatively higher internet access rates compared to non-ICT industries of the same sector.
Internet access rate was highest in the ICT sector of motion picture, radio and TV (O*) at 100 percent. This was followed by computer and related services (K*) at 95 percent. Internet access rate of wholesale and retail trade (G*) was 88 percent, while those of ICT manufacturing (D*), telecommunications (I*) and ICT education (M*) were slightly higher than 70 percent. (Table 1.2)
Only three (3) non-ICT sectors had high internet access rates, as follows: hotels and restaurants (H), nearly 88 percent; other personal, community and social services (O), 81 percent; and financial intermediation (J), 76 percent. The rest of the non-ICT sectors had internet access rates ranging from 22 percent to 72.4 percent. (Table 2.2)
F. Internet Access Rate
Internet access rate of ICT users is measured as the proportion of number of internet users to the total number of PC users. Internet users are those establishments that have access to internet while PC users are those establishments that reported to be using PCs. PCs are the main equipment used to access the internet.
Survey data as depicted in Figure 6 show that:
II. INVESTMENTS IN ICT RESOURCES
Investments or expenditures for ICT resources establish the infrastructures for the use of IC technologies in businesses and industries. Data on ICT expenditures also give an indication of ICT diffusion in businesses and industries.
Statistics in Figures 7 and 8 show that:
In 2001, ICT sector of telecommunications (I*) reported the highest investments in ICT resources at nearly P13,687 million. (Table 1.3) Of this, about 79.8 percent represent investments for telephone services and the remaining for telecommunication services.
Capital expenditures for ICT resources of ICT manufacturing (D*) reached P13,205 million, while those for ICT education (M*) amounted to about P712 million in 2001.
Substantial expenditures on ICT were also reported by Non-ICT sectors of financial intermediation (J), P2,822 million; manufacturing (D), P2,046 million; electricity, gas and water (E), P358 million; and wholesale and retail trade (G), P312 million. (Table 2.3)
III. USAGE OF ICT RESOURCES IN BUSINESSES AND INDUSTRIES
The usage of ICT resources for a number of e-business activities did not differ much among many sectors. Figures 9 and 10 show that:
Many commonalities existed across sectors on the use of ICT for e-business activities and e-processes that include the following: software development for business/engineering applications, production process and control, inventory management, systems design, telecommunications/networking, auditing/financial information system/budget preparation, data management, human resource information system/automated employee services, processing customers’ orders/payments, and research and development. Other e-business activities include: consultancy/project management, electronic selling, electronic payment, internet-based business (web-hosting and website management), and others. (Tables 1.4 and 2.4)
There are other specialized e-business activities which are unique only to particular sectors like production process and control to manufacturing (D and D*), construction and mining (F); internet service provider to telecommunications (I*); and animation to motion picture, TV and radio (O*). ICT training was widely used in the education sector (M and M*), though a few other sectors had also reported its usage.
IV. SOURCES OF ICT RESOURCES
Diffusion of ICT resources into businesses and industries come from various sources. All sectors except education sector reported that main sources of ICT resources, both machines and knowledge, were the suppliers, education/ research institutions, and customers, in that order. (Tables 1.5A, 1.5B, 2.5A and 2.5B.)
The education sector (ICT and non-ICT) reported that the main sources for ICT machines were their suppliers, education/research institutions and thru research and development work. Likewise, education/research institutions, research and development work and suppliers were the main sources of ICT knowledge.
V. ICT HUMAN CAPITAL (Labor, Compensation)
As defined in the survey, ICT workers are those whose line of work involves the management of systems development projects, systems analysis work, programming, website development and hosting, consulting, ICT training, ICT research, telecommunication network, etc. These include MIS managers, database administrators, network engineers, systems analysts, programmers, computer technicians, ICT sales workers/marketing consultants, and other types of ICT workers.
Statistics shown in Figure 11 give the distribution of ICT workers by sector.
The absorption of ICT workers was highest for computer and related services (K*) which accounted for 23.3 percent of all ICT workers. This was followed by ICT education (M*) which shared 19.5 percent of ICT workers. (Table 1.6)
Other sectors that reported to have employed significant number of ICT workers were manufacturing (D and D*), wholesale and retail trade (G and G*), transport, storage, and communication (I and I*), financial intermediation (J), and real estate, renting and other business services (K).
On an establishment basis, computer and related services (K*) had the highest average number of ICT workers at 76 per establishment. (Figure 12.)
(Refer to Tables A, 1.7A to 1.7O for average monthly compensation of ICT workers by sector.)
Table A. Average Monthly Compensation of ICT Workers in Establishments
with Average Total Employment of 20 and Over by Sector:
Reference: December 2001
| Sector | Database Adminis- trator |
MIS Manager |
Network Specialist/ Manager/ Engineer |
Systems Analyst |
Program- mer |
Computer Technician |
ICT Sales/ Marketing |
Other ICT Workers |
| A | 20,000 | 35,550 | 18,008 | 20,390 | 16,200 | 10,910 | - | 7,684 |
| B | 20,734 | - | 11,392 | 15,800 | 14,168 | 9,432 | - | 8,597 |
| C | 17,000 | 28,333 | 16,628 | 16,375 | 15,718 | 14,360 | 11,017 | 10,751 |
| D | 40,772 | 40,796 | 28,476 | 30,345 | 17,479 | 14,393 | 11,880 | 8,413 |
| D* | 27,182 | 33,865 | 22,043 | 25,999 | 17,227 | 11,755 | 11,629 | 8,988 |
| E | 24,853 | 42,804 | 28,930 | 23,298 | 20,382 | 13,577 | - | 16,195 |
| F | 18,402 | 19,364 | 21,224 | 19,217 | 14,605 | 10,334 | - | 8,086 |
| G | 15,633 | 31,128 | 18,601 | 18,352 | 15,435 | 8,606 | 13,737 | 9,406 |
| G* | 17,610 | 24,267 | 15,973 | 20,713 | 13,453 | 8,627 | 23,795 | 10,033 |
| H | 27,167 | 26,841 | 15,375 | 18,165 | 14,425 | 9,659 | 10,416 | 11,324 |
| I | 36,351 | 38,654 | 38,293 | 19,752 | 21,108 | 15,551 | 11,571 | 8,841 |
| I* | 30,884 | 67,076 | 27,496 | 36,833 | 25,956 | 15,959 | 18,691 | 20,907 |
| J | 32,119 | 43,266 | 26,847 | 29,304 | 18,916 | 16,247 | 10,250 | 18,231 |
| K | 23,170 | 30,257 | 24,242 | 19,491 | 20,610 | 11,500 | 15,195 | 9,101 |
| K* | 27,562 | 48,112 | 22,081 | 27,953 | 21,793 | 11,553 | 18,988 | 7,992 |
| M | - | 19,944 | 20,265 | 18,214 | 11,853 | 10,754 | - | 8,794 |
| M* | 15,454 | 20,616 | 12,931 | 12,852 | 11,174 | 7,863 | 8,348 | 8,226 |
| N | 19,856 | 23,833 | 10,955 | 17,078 | 13,598 | 7,621 | - | 8,682 |
| O | 20,972 | 27,741 | 24,700 | 17,343 | 12,618 | 8,231 | 7,724 | 9,663 |
| O* | - | 41,055 | 18,069 | 24,200 | 15,268 | 11,376 | - | 8,374 |
Sectors marked with (*) are with ICT industries. Refer to Sections III.A and III.B of the Technical Notes for listing of ICT indsutries and sector description, respectively.
VI. E-COMMERCE TRANSACTION
In the 2002 SICT, e-commerce transactions are measured in terms of proportion of e-commerce revenue to total sales and e-commerce purchases to total purchases, respectively.
In the country, application of e-commerce transactions among businesses and industries is observed as still in its infancy as the implementing rules and regulations of Republic Act No. 8792 (Electronic Commerce Act) was effected only on July 13, 2000.
The survey results as depicted in Figures 13 and 14 reveal that:
Only the following sectors reported to have been engaged in electronic selling in 2001, as follows: manufacturing (D and D*); construction (F); wholesale and retail trade (G and G*); hotels and restaurants (H); transport, communication and storage (I and I*); and real estate, renting, computer services and other business activities (K and K*). (Tables 1.8 and 2.8)
For all sectors, the propensity to carry out e-selling was only 2.2 percent of total ICT users.
Across sectors which have generated e-commerce revenue, about 69 percent had e-commerce revenue less than 15 percent of total sales and the remaining had e-commerce revenue above 15 percent of total sales.
Statistics in Figures 15 and 16 show that:
There were more sectors which reported as having engaged in electronic purchasing than e-selling. Sectors engaged in e-selling were as well engaged in e-purchasing. In addition, the following sectors also reported to have engaged in e-purchasing: agriculture (A), electricity, gas and water (E), ICT education (M*), health and social work (N), and motion picture, radio and TV (O*). (Tables 1.9 and 2.9)
For all sectors, only about 2.9 percent of ICT users reported to have made e-commerce purchases in 2001.
About 70 percent of those who reported with e-commerce purchases had e-commerce purchases less than 15 percent of total purchases..
VII. BARRIERS TO ADOPTION OF ICT
The reasons why the digital divide existed are aptly presented on Figure 17, which lists the identified barriers to ICT usage as reported by Non-users of ICT resources.
Of the various cases presented in Tables 3.1 to 3.14, the most common barriers or problems identified were the following (ranked according to degree of the problem):
Lack of financing
Lack of equipment
Low priority by management
Lack of technical expertise
Obsolete machines
Not relevant to business
Lack of appreciation
Lack of telecommunication facilities, and
Lack of information
Note: Data for ICT Sectors with less than 20 workers will be made available upon request.
VIII. LIMITATIONS OF DATA
Data presented in the charts and tables are for responding establishments only. Total good questionnaires from sample respondents, numbering 3579 were included in the tabulation and accounted for only 73 percent of total expected returns. Overall response rate is, however, about 90 percent. Reports that were not included in the tabulation were classified as out-of-scope, closed establishments, moved out, and others.
The following table shows the distribution of the samples and responding establishments with ATE 20 and over by sector and area:
Table B. Distribution of Samples and Responding Establishments by Sector and Area
for ATE 20 and Over
| 1994 PSIC |
Sector | Number of Samples | Number of Respondents (as tabulated) |
|||||
| Total | NCR | AONCR | Total | Percent | NCR | AONCR | ||
| Philippines | 4,897 | 2,304 | 2,593 | 3,579 | 73.1 | 1,542 | 2,037 | |
| A | Agriculture, Hunting, and Forestry |
182 | 13 | 169 | 139 | 76.4 | 5 | 134 |
| B | Fishing | 48 | 12 | 36 | 38 | 79.2 | 10 | 28 |
| C | Mining and Quarrying | 28 | 6 | 22 | 15 | 53.6 | 2 | 13 |
| D | Manufacturing (Non-ICT Industries |
1,142 | 534 | 608 | 755 | 66.1 | 338 | 417 |
| D* | Manufacturing (ICT Industies, as listed in III.A of Technical Notes |
581 | 318 | 263 | 421 | 72.5 | 226 | 195 |
| E | Electricity, Gas, and Water Supply |
65 | 6 | 59 | 59 | 90.7 | 5 | 54 |
| F | Construction | 101 | 76 | 25 | 77 | 76.2 | 58 | 19 |
| G | Wholesale and Retail Trade Repair of Motor Vehicles Motorcycles, and Personal and Household Goods (Non-ICT Industries) |
325 | 187 | 138 | 224 | 68.9 | 130 | 94 |
| G* | Wholesale and Retail Trade Repair of Motor Vehicles Motorcycles, and Personal and Household Goods (ICT Industries, as listed in III.A of Technical Notes) |
183 | 154 | 29 | 116 | 63.4 | 95 | 21 |
| H | Hotels and Restaurants | 83 | 50 | 33 | 61 | 73.5 | 31 | 30 |
| I | Transport, Storage, and Communications (Non-ICT Industries) |
178 | 99 | 79 | 132 | 74.1 | 64 | 68 |
| I* | Telecommunications (ICT Industries, as listed in III.A of Technical Notes |
178 | 99 | 79 | 129 | 72.5 | 61 | 68 |
| J | Financial Intermediation | 131 | 111 | 20 | 87 | 66.4 | 68 | 19 |
| K | Real Estate, Renting and Business Activites (Non-ICT Industries) |
214 | 159 | 55 | 138 | 64.5 | 101 | 37 |
| K* | Computer and Related Services and Business Activities (ICT Industries, as listed in II.A of Technical Notes) |
140 | 122 | 18 | 84 | 60.0 | 80 | 4 |
| M | Education (Non-ICT Industries) |
56 | 26 | 30 | 48 | 85.7 | 20 | 28 |
| M* | Education (ICT Industries, as listed in III.A of Technical Notes) |
1,086 | 228 | 858 | 923 | 85.0 | 171 | 752 |
| N | Health and Social Work | 57 | 32 | 25 | 50 | 87.7 | 27 | 23 |
| O | Other Community, Social, and Personal Activities (Non-ICT Industries) |
77 | 43 | 34 | 57 | 74.0 | 31 | 26 |
| O* | Motion Picture, Radio and Television (ICT Industries, as listed in III.A of Technical Notes) |
42 | 29 | 13 | 26 | 61.9 | 19 | 7 |
Source: Industry Statistics Division
Industry and Trade Statistics Department
National Statistics Office
Manila, Philippines
Page last revised: December 3, 2003