This Special Release presents the final results of the 2013 SICT for the non-core ICT industries. All sections were classified under the non-core ICT industries except for the information and communication and some industries in manufacturing, wholesale and retail, and other service activities which are under the core industries.

Survey results in 2013 showed that there were 33,852 establishments classified as non-core ICT industries, a slight decrease of 2.0 percent from 34,488 figure reported in 2010.

Ninety-six percent of establishments use computer and other hardware; nine in ten establishments report internet access through computer

About 95.7 percent of the total establishments used computer and other hardware in their business operations. This percentage was slightly higher than the 92.4 percent reported in 2010.

Almost all establishments used computers and other hardware in doing business transactions. However, those engaged in arts, entertainment and recreation had the lowest percentage with 83.8 percent. Figure 1 shows the percentage of establishments with Computer and Internet Access for all establishments under the non-core ICT industries.

Thirty-five percent of employees use computer routinely at work while twenty-eight percent routinely use computer with internet connection at work

At the national level, only 35.4 percent of the total number of employees used computers routinely at work in 2013 which was slightly higher than in 2010 (31.9%). Financial and insurance activities had the highest percentage for this indicator with 73.6 percent. However, agriculture, forestry and fishing had the lowest percentage with 5.8 percent.

About 28.5 percent used computer routinely at work with internet access, higher by 7.8 percentage points compared to 2010. All sectors reached more than 10.0 percent with regards to the internet connection except agriculture, forestry and fishing with only 3.4 percent. Employees engaged in financial and insurance activities had the highest percentage with the use of computer routinely for work with internet access with 52.2 percent followed by administrative and support service activities with 51.7 percent.

More than one-fourth of establishments maintain website

Presence of a website was reported at 25.5 percent of establishments in 2013, slightly higher than in 2010 (24.7%). Professional, scientific and technical activities had the highest percentage with website with 56.0 percent while establishments engaged in agriculture, forestry and fishing reported the lowest (4.3%).

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 14.4 percent of the establishments, much lower than the 17.1 percent reported in 2010.

Professional, scientific and technical activities had the highest percentage of establishments engaging in e-commerce via internet with 28.6 percent. This was followed by accommodation and food service and manufacturing with 25.9 percent and 25.7 percent, respectively.

E-commerce can also be undertaken through computer networks other than the internet, in which only 6.5 percent of all the establishments reported having used the medium compared to 11.4 percent reported in 2010. Accommodation and food service had the highest percentage of establishments on e-commerce through computer networks other than the internet with 13.5 percent. Figure 2 shows the percentage of establishments with e-commerce via internet and other computer networks for all establishments under the non-core ICT industries.

Nearly 30 percent of establishments do business through mobile phone

Cellular mobile phone is another medium that can be used in doing business. About 29.9 percent of establishments used mobile phones in business transactions in 2013, a slight increase reported in 2010 (29.6%).

Internet used extensively in transacting with government organizations

Establishments also used the internet in transacting with government agencies. Almost 81.0 percent of the establishments used internet to obtain information from government organizations in 2013. It increased by 3.9 percentage points compared to 77.1 percent reported in 2010. Water supply; sewerage, waste management and remediation activities recorded the highest percentage with 99.4 percent.

Approximately 78.4 percent of the establishments download or request for government forms. Most of the sections reached more than 60 percent at this type of activity though arts, entertainment and recreation had the lowest with 57.9 percent.

Completing and sending forms on-line was the third activity mostly done by establishments with Internet access as 63.5 percent of the establishments reported this type of activity. Electricity, gas, steam and air conditioning supply had the highest percentage in this activity with 91.4 percent. This was followed by human health and social work activities and water supply; sewerage, waste management and remediation activities with 81.9 percent and 81.5 percent respectively.

This was followed by human health and social work activities and water supply; sewerage, waste management and remediation activities with 81.9 percent and 81.5 percent respectively.

Making on-line payments to government organizations was the least among the transactions done by the establishments with government organizations via the internet. About 42.2 percent of establishments reported this type of activity. Construction leads in this activity with 55.5 percent followed by mining and quarrying with 53.2 percent.

Internet is used by establishments to share, distribute and obtain information

Obtaining information from other organizations (45.1%), sharing or distribution of information within the establishment (42.4%) and sharing or distribution of information with other organization (35.4%) were the activities done mostly by establishments when transacting via the internet. Other activities consist of finance accounting and auditing (37.3%), internal or external recruitment (36.1%) and staff training (22.7%).

TECHNICAL NOTES

Background

The 2013 SICT is the fifth in the series conducted by the National Statistics Office (NSO) now, the Philippine Statistics Authority (PSA). It is as a rider to the 2013 Annual Survey of Philippine Business and Industry (ASPBI) conducted in September 2014.

Objective of the Survey

The 2013 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

Frame of Establishments

The frame for the 2013 SICT was extracted from the 2013 List of Establishments (LE). This frame was used to draw the sample establishments for the survey.

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 2013 Survey on Information and Communication Technology (SICT) of Philippine Business and Industry is undertaken nationwide and will cover all industries covered in the 2013 ASPBI. For the purposes of the survey, these industries will be classified as core ICT industries and non-core ICT Industries. Core ICT industries are industries comprising the Information Economy (IE).

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

   a. 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

   b. 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.

Sampling Design

The 2013 SICT utilized the stratified systematic sampling design with five-digit PSIC serving as industry strata (industry domain) and the employment size (Total Employment, TE) as the second stratification variable.

Establishments engaged in the core ICT industries will be completely enumerated (100%), regardless of employment size. The establishments classified in the non-core ICT industries and with total employment of 20 and over shall be covered on a 10 percent sampling basis. For each of the non-core ICT industry, the sample size for establishments with TE of 20 and over was determined by applying the specified sampling rates for each of the industry domain at the national level. The minimum sample size is set to 3 establishments and maximum of 100 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 10,986 samples were selected for the survey.

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 2013 SICT refers to calendar year 2013 except for employment which is as of 15 November 2013.

Response Rate

The overall response rate for the 2013 SICT is 87.04 percent (9,562 of the 10,986 sample establishments). This included receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments. Sample establishments under core ICT industries reported 89.96 percent response rate ( 5,421 out of 6,026 establishments) while non-core ICT industries response rate is 83.48 percent (3,633 out of 4,352 sample establishments). On the other hand, industries classified in Business Process Management (BPM) have a response rate of 83.55 percent (508 out of 608 establishments).

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 anytime, anywhere to anyone. 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.