2015 Survey on Information and Communication Technology - Information Economy (Core ICT Industries) - Final Results

Reference Number: 

2019-010

Release Date: 

Thursday, February 7, 2019

This Special Release presents the final results of the 2015 Survey on Information and Communication Technology (SICT) for the core Information and Communication Technology (ICT) industries. Core ICT industries includes information and communication sector, and some industries for manufacturing, wholesale and retail trade; repair of motor vehicles and motorcycles, and other service activities.

The SICT adopts the Information Economy (IE) or core ICT industries as its framework. IE refers to industries involved in producing and trading of ICT products, and those which primarily use ICT in providing products and services. IE is comprised of the ICT sector, and the Content and Media sector.

The final results of the 2015 SICT conducted in 2016 showed that there were 3,786 establishments in the IE (core ICT industries), a decrease of 10.9 percent from the 4,251 establishments reported in 2013.

Almost all establishments own and use computer and other hardware, and have internet access

Nearly all (98.5%) of the 3,786 IE establishments covered in the 2015 SICT used computer and other hardware in their business operations. Content and media sector had a higher usage of 99.0 percent and ICT sector, 98.4 percent.

All establishments in the following IE industries used computers and other hardware:

  • Software publishing
  • Data processing, hosting and related activities; web portals
  • Publishing activities

On the other hand, establishments engaged in repair of computers and communication equipment had the lowest usage of 92.2 percent.

At the regional level, all the IE establishments in Cagayan Valley and Autonomous Region in Muslim Mindanao (ARMM) used computers and other hardware in their business operations while 94.2 percent in MIMAROPA Region, the lowest among the regions.

Establishments with internet access reached 96.7 percent in 2015, from 96.3 percent in 2013. Content and media sector (97.5%) had a higher internet access compared to the ICT sector (96.5%). Software publishing registered 100.0 percent internet access in 2015. On the other hand, repair of computers and communication equipment reported the lowest internet access of 86.7 percent.

Among the regions, ARMM reported 100.0 percent internet access while the lowest percentage was recorded in MIMAROPA Region at 84.6 percent.

Figure 1 shows the percentage of establishments in IE with computer and other hardware, and with internet access by industry.

About half of employees use computer routinely at work; 40.0 percent routinely use computer with internet connection at work

Of the 386,952 employees in IE, 47.9 percent used computer routinely at work in 2015. This was higher by 1.3 percentage points than the 46.6 percent reported in 2013. IE employees in the content and media sector (74.2%) had a higher percentage for this indicator compared to those in the ICT sector (45.7%).

Among IE industries, software publishing had the highest percentage of employees using computer routinely at work at 95.9 percent while those in ICT manufacturing industries had the least at 20.9 percent.

At the national level, 40.0 percent of employees used computer with internet connection routinely at work, higher by 1.8 percentage points compared with the 38.2 percent reported in 2013. Content and media sector (69.1%) registered a higher percentage than those in the ICT sector (37.4%). Computer programming, consultancy and related activities (91.1%) had the highest percentage of employees using computer with internet access routinely at work while employees of ICT manufacturing industries had the least at 11.3 percent.

By region, Negros Island Region (NIR) (89.7%) reported the highest percentage of employees using computer routinely at work while those in CALABARZON (21.7%) recorded the lowest. NIR (88.3%) and CALABARZON (12.7%) were also the regions with the highest and lowest percentages of employees using computers with internet access routinely at work, respectively.

Almost 30.0 percent of establishments maintain website

Of the total IE establishments, 29.5 percent had website in 2015. Presence of website among IE establishments grew by 3.5 percentage points compared with the 26.0 percent reported in 2013. The ICT sector (30.2%) had a higher percentage of IE establishments with website than those in the content and media sector (26.6%). Among IE industries, computer programming, consultancy and related activities (60.7%) had the highest percentage of establishments with website, while repair of computers and communication equipment (3.9%) had the lowest percentage.

By region, five in every ten IE establishments or 45.4 percent had website in the National Capital Region (NCR), the highest among the regions. In ARMM, all the IE establishments had no website.

Majority of establishments have wired LAN

About 61.6 percent of IE establishments utilized wired Local Area Network (LAN) in 2015. This was higher by 14.2 percentage points than the 47.4 percent reported in 2013. Establishments with wired LAN in the ICT sector was 62.5 percent while those in the content and media sector had 58.2 percent.

Meanwhile, 42.1 percent and 17.0 percent of the IE establishments had wireless LAN and wide area network, respectively.

Region-wise, 70.8 percent of IE establishments in Western Visayas used wired LAN compared to other regions. On the other hand, less than half (48.6%) of the establishments used wired LAN in Bicol Region, the least among the regions.

Almost 14.0 percent of IE establishments utilize the internet for business

E-commerce is the process of buying or selling goods and services through internet protocol-based network. The proportion of IE establishments using internet for e-commerce in 2015 was 13.5 percent, an increase of 2.4 percentage points from the 11.1 percent reported in 2013.

Content and media sector (15.0%) had a higher percentage of IE establishments engaged in e-commerce via internet than those in the ICT sector (13.2%). Among IE industries, computer programming, consultancy and related activities (31.3%) registered the highest percentage for this indicator, followed by publishing activities (28.5%). On the other hand, repair of computers and communication equipment recorded the lowest percentage of establishments using e-commerce via internet (1.9%).

Among the regions, the highest percentage utilization of e-commerce via internet was recorded in NCR at 18.3 percent. On the contrary, non-utilization was reported in ARMM.

E-commerce can also be undertaken through computer network channels other than the internet. Of the total IE establishments, only 1.5 percent reported having used the medium, in which, the ICT sector exhibited higher percentage (1.7%) than the content and media sector (0.6%).

Figure 2 shows the percentage of establishments in IE with e-commerce via the internet and other computer networks.

Around 17.0 percent of IE establishments do business through mobile phone

Cellular mobile phone is another medium that can be used for doing business. Of the total IE establishments, 17.4 percent used mobile phones in their business transactions in 2015. Content and media sector reported 17.6 percent usage, slightly higher than the 17.3 percent reported by the ICT sector. Among industries, software publishing topped this kind of transaction with 22.2 percent. Meanwhile, ICT manufacturing industries had the least at 9.0 percent.

By region, Cagayan Valley (33.3%) reported the highest business transaction via cellular mobile phone while Eastern Visayas reported the lowest at 7.5 percent.

Majority of establishments in IE use internet to share or distribute information for business operations

Sharing or distribution of information within the establishment (51.5%) and obtaining information from other organizations (47.4%) were the activities done mostly by IE establishments using the internet in their business operations. The internet was also used by the IE establishments for the following activities:

  • Finance accounting and auditing (41.2%)
  • Internal or external recruitment (40.6%)
  • Sharing or distribution of information with other organizations (39.8%)
  • Staff training (31.6%)

Internet is used extensively in obtaining information from government organizations

About 83.8 percent of the IE establishments used internet to obtain information from government organizations. It grew by 3.1 percentage points from the 80.7 percent reported in 2013. The content and media sector recorded a higher percentage of internet use in obtaining information from government organization (85.0%) than the ICT sector (83.5%). ICT manufacturing industries recorded the highest percentage of establishments performing the activity at 92.1 percent.

Around 77.0 percent of IE establishments used the internet for downloading or requesting government forms, in which, the ICT sector (78.6%) had higher usage than the content and media sector (71.2%). ICT manufacturing industries had the highest percentage among IE industries at 96.3 percent. This was followed by computer programming, consultancy and related activities (87.9%); and data processing, hosting and related activities; web portals (85.9%).

Completing or sending forms online (65.1%) was the third activity mostly done by establishments with internet access. ICT manufacturing industries (88.4%) led the other industries for this type of transaction.

Making online payments to government organizations (49.2%) was the least among the transactions done by the IE establishments with internet access. More than three-fourths of the establishments (75.5%) in ICT manufacturing industries reported this type of transaction, the highest among IE industries.

 


 

TECHNICAL NOTES

 

Background

The 2015 Survey on Information and Communication Technology (SICT) is the sixth in the series of SICT conducted by the Philippine Statistics Authority (PSA). It is a rider to the 2015 Annual Survey of Philippine Business and Industry (ASPBI) conducted in 2016.

Objective of the Survey

The 2015 SICT aims to collect and generate information on the availability, distribution and access/utilization of ICT among establishments in the country.

Specifically, the survey aims to measure the following:  

  • component of ICT resources and their utilization by establishments
  • diffusion of ICT into establishments from various sources
  • e-commerce transactions from data on e-commerce sales/revenue and purchases
  • cellular mobile phone business transactions from data on sales/revenue
  • estimate of the number of ICT workers in establishments
  • methods of disposal of ICT equipment

Uses of the ICT Data

The results of the survey will be used in:  

  • assessing the use of ICT resources by establishments and the available infrastructure
  • determining how establishments use the internet, including the activities for which it is used
  • determining web presence in establishments
  • determining the revenue generated through e-commerce transactions, and through cellular mobile phones
  • determining the methods of disposal of ICT equipment

Sampling Frame of Establishments

The sampling frame for the 2015 SICT, which was used to draw the sample establishments for the survey, was extracted from the 2015 List of Establishments (LE). Included in the sampling frame for SICT survey were those establishments confined to the formal sector.

The formal sector comprised the following:  

  1. Corporations and partnerships
  2. Cooperatives and foundations
  3. Single proprietorship with employment of 10 and over
  4. Single proprietorship with branches

The initial estimate of the 2015 LE showed that there were 909,726 establishments in operation in the country for the year. Of the total establishments in the formal sector, 223,821 establishments (86%) comprised the sampling frame for the 2015 SICT.

Unit of Enumeration

The unit of enumeration of the survey is the establishment. Establishment is an economic unit under a single ownership or control, i.e., under a single legal entity,  engaged in one or predominantly one kind of activity at a single fixed location.

Scope and Coverage

The 2015 SICT is undertaken nationwide and covers all industries in the 2015 ASPBI. For the purpose of the survey, these industries are classified as core ICT industries and non-core ICT Industries. Core ICT industries are industries comprising the Information Economy (IE). For this Special Release, only results from IE industries are presented.

The IE is composed further of the ICT Sector and Content and Media sector. The industries under each sector are as follows:

  1. ICT Sector
    • ICT Manufacturing Industries
    • ICT Trade Industries
    • ICT Service Industries
      • Software publishing
      • Telecommunication services
      • Computer programming, consultancy and related services
      • Data processing, hosting and related activities; web portals
      • Repair of computers and communication equipment
  2. Content and Media Sector
    • Publishing activities
    • Motion picture, video and television programme production, sound recording and music publishing activities

The economic activities composing the core ICT industries in the Philippines are listed in Table 1.

 

Table 1. List of Core ICT Industries in the Philippines: 2009 PSIC
 
2009 PSIC Industry Description
  ICT Manufacturing Industries
C26110 Manufacture of electronic valves and tubes
C26120 Manufacture of semi-conductor devices and other electronic components
C26200 Manufacture of computers and peripheral equipment and accessories
C26300 Manufacture of communication equipment
C26400 Manufacture of consumer electronic
C26800 Manufacture of magnetic and optical media
  ICT Trade  Industries
G46510 Wholesale of computers, computer peripheral equipment and software
G46521 Wholesale of electronic valves and tubes
G46522 Wholesale of semi-conductor devices
G46523 Wholesale of micro-chips and integrated circuits
G46524 Wholesale of printed circuits
G46526 Wholesale of telephone and communications equipment including parts and accessories
G46527 Wholesale of blank audio and video tapes and diskettes, magnetic and optical disks (CDs, DVDs)
  ICT Service Industries
J58200   Software Publishing
    Telecommunications Services
       Wired telecommunications activities
J61101      Wired (landline) services
J61102      Wired internet access service activities (e.g. DSL, leased line, dial-up)
J61103      Telegraph, facsimile/ telefax,  and telex services
J61109      Other wired telecommunication  activities , including pay phone
       Wireless  telecommunications activities
J61201      Wireless  landline  services
J61202      Mobile telecommunications services
J61203      Wireless internet access services (e.g. Internet Service Provider, broadband)
J61209      Other wireless  telecommunication  services, n.e.c.
J61300      Satellite telecommunications activities
       Other  telecommunications activities
J61901      Telephone access in facilities open to the public service activities
J61902      Internet access in facilities open to the public service  activities
J61903      Voice Over Internet Protocol (VOIP) service  activities
J61909      Other  telecommunications  service activities, n.e.c.
    Computer Programming, Consultancy and Related Activities
J6201      Computer programming activities
J62011*      Game design and development
J62019*      Other computer programming activities
J62020      Computer consultancy and computer facilities management activities
J62090      Other information technology  and computer service activities
    Data processing, hosting and related activities; web portals
J63111      Data processing
J63112      Website hosting services
J63113      Application hosting services
J63120      Web portals
     Repair of computers and communication equipment
S95110      Repair of computers and peripheral equipment
S95120      Repair of communication equipment
S95210      Repair of consumer electronics
  Content and Media Industries
    Publishing Activities
J58110      Book publishing
J58120      Publishing of directories and mailing lists
J58130      Publishing of newspapers, journals and periodicals
J58190      Other  publishing activities
J63910      News agency activities
J63990      Other information service activities, n.e.c
    Motion picture, video and television  programme  production, sound recording and music    publishing activities
J5911      Motion picture, video and television programme activities
J59111*      Pre & main production of traditional & 2D animation
J59112*      Pre & main production of 3D animation
J59119*      Pre & main production of other motion films and etc.
J5912      Motion picture, video and television programme post-production activities
J59121*      Post production of traditional & 2D animation
J59122*      Post production of 3D animation
J59129*      Post production of other motion films and etc.
J59130      Motion picture, video and television programme distribution activities
J59140      Motion picture projection activities
J59201      Sound recording activities
J59202      Publishing of music
    Programming and broadcasting activities
J60101      Radio broadcasting and relay station  and studios
J60102      Radio program production
J60103      Radio broadcasting activities over the Internet (internet radio stations)
J60201      Television  broadcasting and relay station  and studios including closed circuit television services
J60202      Television program production
J60203      Television  broadcasting activities over the Internet (internet radio stations)
  * newly assigned industry codes which were split from selected industries (J59110, J59120 and J62010) and for PSA internal use only
 
Business Process Management (BPM) industries under the Information and Communication sector and Administrative Support Service Activities are also covered in this survey round.
 
BPM is a discipline involving any combination of modeling, automation, execution, control, measurement and optimization of business activity flows, in support of enterprise goals, spanning systems, employees, customers and partners within and beyond the enterprise boundaries.
 
Table 2 shows the list of BPM industries in the country.
 
Table 2 List of BPM industries in the Philippines: 2009 PSIC
 

2009 PSIC Industry Description
  BPM under Information and Communication Sector
J58200** Software Publishing
J62011** Game design and development
J62019** Other computer programming activities
J62020** Computer consultancy and computer facilities management activities
J62090** Other information technology  and computer service activities
J63111** Data processing
J63112** Website hosting services
J63113** Application hosting services
J63120** Web portals
J58190** Other  publishing activities
J59111** Pre & main production of traditional & 2D animation
J59112** Pre & main production of 3D animation
J59121** Post production of traditional & 2D animation
J59122** Post production of 3D animation
  BPM under Administrative and Support Service Activities
N82211 Customer relationship management activities
N82212 Sales and marketing (including telemarketing) activities
N82219 Other call centers activities (voice), n.e.c.
N82226 Medical Transcription activities
    ** Industries which are both Core ICT industries and BPM.

 

Sampling Design

The 2015 SICT utilized a stratified systematic sampling design with five-digit PSIC serving as first stratification variable (industry strata/domain) and employment size (Total Employment, TE) as the second stratification variable (employment strata).

There are only two employment strata used for the survey: Stratum 1 - TE of 20 and over, and Stratum 2 - TE of less than 20. For non-core ICT industries, only establishments under the first stratum is covered, except those establishments classified as BPM industries under the administrative and support service activities sector, which are completely covered, regardless of employment size.

Sample size and selection

Establishments engaged in the core ICT industries are completely enumerated (100%), regardless of employment size. The establishments classified in the non-core ICT industries and with total employment of 20 and over are covered on a 20 percent sampling basis for each of the industry domain at the national level. The minimum sample size is set to three establishments and maximum of 10 establishments per cell (industry domain).  However, when the total number of establishments (N) in the cell is less than the set minimum sample size, all establishments in that cell are taken as samples.

A total of 9,339 samples were selected for the survey.

Geographic Domain

For 2015 SICT, the geographic domains for the core ICT and BPM industries are the regions; while the non-core ICT industries is at the national level.

Indicators

Some indicators to be generated from the survey are as follows:

  • proportion of establishments using computer
  • proportion of employees using computers
  • proportion of establishments with internet connection
  • proportion of employees using the internet at work
  • proportion of establishments with Web presence
  • proportion of establishments with Intranet
  • proportion of establishments placing and receiving orders over the internet
  • proportion of establishments using the Internet by type of access and activity
  • proportion of establishments with LAN and Extranet

Reference Period

All information collected in the 2015 SICT refers to calendar year 2015, except for employment which is as of 15 November 2015.

Response Rate

The overall response rate for the 2015 SICT for establishments under IE is 88.80 percent (8,293 of the 9,339 sample establishments). This included receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments. In addition, 252 establishments responded online.

CONCEPTS AND DEFINITIONS

Information Economy (IE) is a term used to describe the economic and social value created through the ability to rapidly exchange information at any time, anywhere to any one. It is characterized by the intensive use by businesses of ICT for the collection, storage, processing and transmission of information. The use of ICT is supported by supply of ICT products from an ICT-producing sector and through trade.

IE is comprised of the Information and Communication Technology (ICT) Sector and the Content and Media Sector.

Industries under ICT Sector are industries which fulfill and/or enable, by electronic means, the processing, communication, transmission and display of information. It excludes the industries which create the information.

Industries under Content and Media Sector are those which produce goods and services primarily intended to inform, educate and/or entertain humans through mass communication media. These industries are engaged in the production, publishing and/or distribution of content (information, cultural and entertainment products), where content corresponds to an organized message intended for human beings.

Information and Communication Technology (ICT) as defined by the Commission on Information and Communication Technology (CICT) is "the totality of electronic means to collect, store, process and present information to end-users in support of their activities". It consists, among others, of computer systems, office systems and consumer electronics, as well as network information infrastructure, the components of which include the telephone system, the Internet, fax machines and computers.

ICT Resources are equipment, knowledge and human resources used to support electronic business/manufacturing processes and the conduct of electronic commerce transactions. It includes computer and peripheral equipment, systems and application software, network channels, telecommunication equipment, routers, satellite and other ICT hardware used in electronic business and commerce transactions, ICT support services and ICT workers.

Network channel is a collection of computers connected to each other that allows them to communicate with each other, and share resources and information. All networks are made up of basic hardware building blocks to interconnect network nodes, such as Network Interface Cards (NICs), Bridges, Hubs, Switches, and Routers.

Internet is a global system of interconnected computer networks that interchange data by packet switching using the standardized Internet Protocol Suite (TCP/IP). It is a "network of networks" that consists of millions of private and public, academic, business, and government networks of local to global scope that are linked by copper wires, fiber-optic cables, wireless connections, and other technologies. The Internet carries various information resources and services, such as electronic mail, online chat, file transfer and file sharing, online gaming, and the inter-linked hypertext documents and other resources of the World Wide Web (WWW).

Intranet is a set of networks, using the Internet Protocol and IP-based tools such as web browsers and file transfer applications, that is, under the control of a single administrative entity. That administrative entity closes the intranet to all but specific, authorized users. Most commonly, an intranet is the internal network of an organization.

Extranet is a network or internetwork that is limited in scope to a single organization or entity but which also has limited connections to the networks of one or more other usually, but not necessarily, trusted organizations or entities (e.g. a company's customers may be given access to some part of its intranet creating in this way an extranet, while at the same time the customers may not be considered 'trusted' from a security standpoint).

Wide Area Network (WAN) is a computer network that covers a broad area (i.e., any network whose communications links cross metropolitan, regional, or national boundaries. Less formally, a WAN is a network that uses routers and public communications links. The largest and most well-known example of a WAN is the Internet. A WAN is a data communications network that covers a relatively broad geographic area (i.e. one city to another and one country to another country) and that often uses transmission facilities provided by common carriers, such as telephone companies.

Local Area Network (LAN) is a computer network covering a small physical area, like a home, office, or small group of buildings, such as a school, or an airport. Current LANs are most likely to be based on Ethernet technology. Each workgroup can get to its local printer. Note that the printers are not accessible from outside their workgroup.

E-commerce or electronic commerce refers to the sale of goods and services where an order is placed by the buyer, price and terms of sale are negotiated over the Internet Protocol-based networks, an extranet, Electronic Data Interchange (EDI) network, or other on-line system.

Web site is a collection of Web pages, images, videos or other digital assets that is hosted on one or more web servers, usually accessible via the Internet. All publicly accessible websites are seen collectively as constituting the "World Wide Web". The pages of a website can usually be accessed from a common root URL called the homepage, and usually reside on the same physical server.


 

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