This Special Release presents the final results of the 2015 Survey on Information and Communication Technology (SICT) for the non-core ICT industries. All sectors under the 2009 Philippine Standard Industrial Classification (PSIC) were classified as non-core ICT industries, except information and communication sector, and some industries in manufacturing, wholesale and retail trade; repair of motor vehicles and motorcycles, and other service activities, which are classified under the core ICT industries.
The final results of the 2015 SICT conducted in 2016, showed that there were 34,065 establishments in the non-core ICT industries. This was slightly higher by 0.6 percent from the 33,852 establishments reported in 2013.
Ninety-six percent of establishments use computer and other hardware; nine in ten establishments report internet access through computer
Of the total establishments in the non-core ICT industries, 96.1 percent used computer and other hardware in their business operations. This was 0.4 percentage points higher than the 95.7 percent reported usage in 2013.
All the establishments under the following sectors reported to have used computers and other hardware in their business operations:
- Electricity, gas, steam and air conditioning supply
- Water supply; sewerage, waste management and remediation activities
- Real estate activities
- Human health and social work activities
However, those engaged in agriculture, forestry and fishing had the lowest usage of computers and other hardware at 84.2 percent.
Nine in every ten establishments in the non-core ICT industries (93.4%) reported having internet access in 2015.
Furthermore, all establishments belonged to sectors with 100.0 percent usage of computers and other hardware had internet access in 2015, except education (98.5%). Agriculture, forestry and fishing also reported the least percentage of establishments with internet access (69.2%).
Forty-two percent of employees use computer routinely at work while 34.0 percent routinely use computer with internet connection at work
At the national level, 42.0 percent of the total employees in the non-core ICT industries used computer routinely at work in 2015. This was 6.6 percentage points higher compared with the 35.4 percent reported in 2013. Among non-core ICT sectors, financial and insurance activities had the highest percentage of employees routinely using computer at work (77.2%). Agriculture, forestry and fishing had the lowest percentage at 13.1 percent.
Moreover, 34.5 percent of the total employees in the non-core ICT industries used computer with internet access routinely at work, higher by 6.0 percentage points compared with the 28.5 percent recorded in 2013. Of the 17 sectors, only two reported less than 10.0 percent of employees using computer with internet access routinely at work. These were arts, entertainment and recreation (9.1%), and agriculture, forestry and fishing (8.6%).
About one-third of establishments maintain website
Presence of a website was reported by 32.8 percent of the total establishments in the non-core ICT industries. Among the sectors, water supply; sewerage, waste management and remediation activities had the highest percentage of establishments with website at 73.7 percent. Agriculture, forestry and fishing reported the lowest (5.9%).
More than 14 percent of establishments utilize the internet for business
E-commerce is the process of buying or selling of goods and services through internet protocol-based network. E-commerce via the internet was reported by 14.2 percent of the total establishments, slightly lower than 14.4 percent reported in 2013.
By sector, water supply; sewerage, waste management and remediation activities had the highest percentage of establishments with e-commerce transaction via internet at 33.6 percent. This was followed by human health and social work activities, and accommodation and food service at 25.3 percent and 25.1 percent, respectively. On the other hand, education and other service activities had no e-commerce transaction via internet in 2015.
E-commerce can also be undertaken through computer networks other than the internet. Use of this medium was 4.9 percent in 2015, 1.6 percentage points lower than the reported usage of 6.5 percent in 2013. Water supply; sewerage, waste management and remediation activities had the highest percentage of establishments with e-commerce transactions through computer networks other than the internet at 13.3 percent. This was followed by administrative and support service activities, and professional, scientific and technical activities at 8.7 percent and 7.8 percent, respectively. On the contrary, the following sectors did not report any e-commerce transactions via computer networks other than the internet:
- Electricity, Gas, Steam and Air Conditioning Supply
- Other Service Activities
Figure 1 shows the percentage of establishments in the non-core ICT industries with e-commerce transactions via the internet and other computer networks.
One in every four establishments does business through mobile phone
Cellular mobile phone is another medium that can be used in doing business. About 24.2 percent of the total establishments in the non-core ICT industries used mobile phones in their business transactions. By sector, mining and quarrying registered the highest percentage at 37.8 percent while education reported the least at 7.0 percent.
About 47.0 percent of establishments used internet to share or distribute information within the establishment
The internet was also used by establishments in the non-core ICT industries for the following activities:
- Sharing or distribution of information within the establishment (46.9%)
- Finance accounting and auditing (44.3%)
- Obtaining information from other organizations (44.1%)
- Sharing or distribution of information with other organization (37.2%)
- Internal or external recruitment (38.2%)
- Staff training (29.2%)
Internet is used extensively in transacting with government organizations
Establishments also used the internet in transacting with government agencies. About 81.0 percent of the total establishments in the non-core ICT industries used the internet to obtain information from government organizations in 2015. The following sectors reported more than 90.0 percent usage of internet in obtaining information from government organizations:
- Electricity, gas, steam and air conditioning supply (99.6%)
- Water supply; sewerage, waste management and remediation activities (97.7%)
- Mining and quarrying (95.9%)
- Transportation and storage (94.1%)
- Education (93.4%)
Approximately 81.3 percent of the establishments used the internet for downloading or requesting government forms. Among the sectors, only establishments engaged in water supply; sewerage, waste management and remediation activities reported 100.0 percent utilization of internet for downloading or requesting government forms. On the other hand, other service activities registered the lowest percentage at 62.7 percent.
Completing forms on-line or sending completed forms (71.0%) was the third activity mostly done by establishments with internet access. Sector-wise, electricity, gas, steam and air conditioning supply had the highest percentage of 88.9 percent. This was followed by water supply; sewerage, waste management and remediation activities at 87.3 percent. Meanwhile, three sectors reported less than 60.0 percent usage of internet for this type of activity, these were:
- Arts, entertainment and recreation (58.3%)
- Other service activities (57.9%)
- Accommodation and food service (57.1%)
The percentage of establishments which used internet for making on-line payments to government corporations was 55.3 percent. Across sectors, construction (74.0%) registered the highest percentage, followed by mining and quarrying (69.8%), and professional, scientific and technical activities (68.8%).
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:
- Corporations and partnerships
- Cooperatives and foundations
- Single proprietorship with employment of 10 and over
- 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.
All sectors under the 2009 PSIC are classified as non-core ICT industries except information and communication sector and some industries in manufacturing, wholesale and retail trade; repair of motor vehicles and motorcycles, and other service activities, which are classified under the core ICT industries.
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 Business Process Management (BPM) industries under the administrative and support service activities sector,which are completely covered, regardless of employment size.
Sample size and selection
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 3,886 samples were selected for the non-core ICT industries.
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.
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
All information collected in the 2015 SICT refers to calendar year 2015, except for employment which is as of 15 November 2015.
CONCEPTS AND DEFINITIONS
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.