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Digital-Context-Argentina.Pdf Digital context: Argentina NOVEMBER 2016 Digital Context: Argentina 1 Digital context: Argentina Outline • Overview 1 Digital scenario 2 Demand side 3 Supply side 4 Regulation side 2 Digital context: Argentina Overview • Argentina has room for improving in terms of the Digitization Index, particularly ICT regulation and Internet use in enterprises • Argentina’s Internet use is close to that of developed countries, with a high frequency of use • The prices of one minute call and fixed broadband monthly subscription in Argentina are higher than in developed countries • Home is the main place for Internet access • Cost is the main barrier for Internet access at home • The use of e-banking and e-commerce is fairly widespread in Argentina. In both cases, it stands above 20% in 2014 • 67.3% of Argentina's population has a mobile-broadband subscription in 2015 • Argentina shows a high piracy rates and a low efficiency of the legal system • Argentina needs to improve in terms of the ease of doing business ranking and entrepreneurship 3 Digital context: Argentina Digital scenario: 1 Digitization Index 4 Digital context: Argentina 1.1. Structural Digitization Index, 2015 1 0.9 0.8 United States 0.7 0.6 Chile Mexico 0.5 Colombia 0.4 Argentina Peru 0.3 0.2 0.1 0 Algeria Vietnam Morocco China Hungary Ireland Germany Sweden Qatar Peru Thailand Saudi Arabia Turkey Chile Malaysia Netherlands Nigeria Argentina Mexico Croatia Romania United Arab Emirates Denmark Finland Pakistan Egypt Sri Lanka Colombia Uruguay Belgium Latvia Lithuania Bangladesh Ukraine Italy Slovenia Luxembourg Spain Canada Korea, Rep. Paraguay Greece Poland Kazakhstan Brazil Singapore Australia Japan India Philippines Bulgaria Russian Federation Czech Rep. Austria France Estonia Venezuela Indonesia Cyprus Slovak Republic South Africa Portugal United States Hong Kong SAR United Kingdom The index is made up of indicators related to the level of infrastructure, ICT adoption and usage, costs and regulation conditions 5 Digital context: Argentina 1.2. Digitization Index 2015: Dimensions Affordability ICT Regulation Infrastructure 1 1 1 GBR URY 0.9 GBR 0.9 0.9 ARG USA OCDE 0.8 USA 0.8 0.8 CHL PER 0.7 OCDE 0.7 0.7 CHL 0.6 0.6 GBR 0.6 MEX 0.5 0.5 0.5 URY USA 0.4 0.4 0.4 PER 0.3 0.3 0.3 ARG PER URY MEX OCDE 0.2 0.2 ARG 0.2 0.1 0.1 0.1 0 0 0 Individual use Enterprise use Content 1 1 1 URY GBR 0.9 GBR 0.9 0.9 0.8 GBR 0.8 URY CHL USA 0.8 USACHL ARG 0.7 OCDE 0.7 OCDE 0.7 MEX USA PER 0.6 0.6 0.6 OCDE ARG 0.5 MEX 0.5 ARG PER 0.5 PER MEX 0.4 0.4 0.4 0.3 0.3 0.3 0.2 0.2 0.2 0.1 0.1 0.1 0 0 0 Nota: Regarding the infrastructure indicator, if more Internet related variables such as 3G coverage or secure Internet servers are considered, Argentina’s position both improves and overpasses that of countries like Mexico or Peru. 6 Digital context: Argentina 2 Demand side 7 Digital context: Argentina 2.1. Computer and Internet: access at home and usage ICT access and Internet use Frequency of Internet use 100 100% 90 90% 80% 80 70% 70 Increasing 60% (%) 60 frequency 50% of Internet 50 40% use 40 30% 30 20% 20 10% 0% 10 2011 2014 0 Daily internet use Weekly internet use Internet access Computer Mobile access Internet use access Monthly internet use Lower frequency of use 2011 2015 Significant increase in Internet access and Internet use between 2011 and 2015 Note: use of Internet over the last 3 months 8 Digital context: Argentina 2.2. Internet use: evolution by geographies 80 70 MEAN 2014 60 50 40 Internet Internet users (%) 30 20 10 0 Patagonia Pampa Buenos Aires Litoral Cuyo Noroeste 9 Digital context: Argentina 2.3. Internet access: barriers Barrriers in households Barriers for non-Internet users Cost is the 60 most 60 important barrier to 50 establish an 50 Internet 40 connection 40 30 (%) (%) 30 20 20 10 10 0 Too Lack of Lack of Without Others Mobile 0 expensive necessity skills coverage internet Lack of Lack of skills Without Others access necessity access 2011 2011 % Households without Internet access in 2011 % Non-Internet users in 2011 Cost is the main barrier to Internet access at home 10 Digital context: Argentina 2.4. Places for Internet access (last 3 months) 80 70 60 50 (%) 40 30 20 10 0 Home Work Private centre Education centre Others Mobile internet Public centre 2011 Internet use in 2011: Internet use in 2015: 54.4% +11.7 p.p. 66.1% Home and work are the main places used to access Internet Note: options are not exclusive, individuals can select more than one place. 11 Digital context: Argentina 2.5. Internet activities: usage over last 3 months Most 50 popular 40 100 activities x 5.21 x 1.54 90 30 80 20 70 10 60 0 E-commerce E-banking (%) 50 2011 2014 40 30 20 10 0 Social Communication Health and Information E-government Job search E-commerce E-banking Education networks medicine 2014 Using social networks is the most popular activity among Internet users Note: options are not exclusive, individuals can select more than one activity simultaneously. 12 Digital context: Argentina 2.6. Smartphones: evolution by geography 50 45 MEAN 2014 40 35 30 (%) 25 20 15 10 5 0 Patagonia Buenos Aires Litoral Cuyo Pampa Noroeste 2014 13 Digital context: Argentina 2.7. E-banking: evolution by geography 50 45 40 35 30 (%) 25 MEAN 2014 20 15 10 5 0 Patagonia Buenos Aires Litoral Cuyo Pampa Noroeste 2014 14 Digital context: Argentina 2.8. E-commerce: evolution by geography 40 35 30 MEAN 2014 25 (%) 20 15 10 5 0 Patagonia Buenos Aires Litoral Cuyo Pampa Noroeste 2014 15 Digital context: Argentina 2.9. Geographical distribution in 2014: usage over the last 3 months Internet Smartphone E-banking E-commerce High Medium Low 16 Digital context: Argentina 2.10. Population characteristics: Internet and smartphone use (%) Smartphone Internet use DENSITY 23 Rural 23 22 Urban 22 21 Quintile 5 21 20 Quintile 4 20 INCOME 19 Quintile 3 19 18 Quintile 2 18 17 Quintile 1 17 16 Terciary 16 15 Secondary 15 EDUCATION 14 Primary 14 13 No studies 13 12 Housewife 12 11 Retiree 11 LABOUR 10 Student 10 SITUATION 9 Unemployed 9 8 Employed 8 7 + 65 7 6 45-64 6 AGE 5 34-44 5 4 25-34 4 3 18-24 3 2 Female 2 GENDER 1 Male 1 100 80 60 40 20 0 0 20 40 60 80 100 Note: Internet use and smartphone ownership data are from 2014 17 Digital context: Argentina 2.11. Population characteristics: users of e-banking and e-commerce (%) E-banking E-commerce DENSITY 23 Rural 23 22 Urban 22 21 Quintile 5 21 20 Quintile 4 20 INCOME 19 Quintile 3 19 18 Quintile 2 18 17 Quintile 1 17 16 Terciary 16 15 Secondary 15 EDUCATION 14 Primary 14 13 No studies 13 12 Housewife 12 11 Retiree 11 LABOUR 10 Student 10 SITUATION 9 Unemployed 9 8 Employed 8 7 + 65 7 6 45-64 6 AGE 5 34-44 5 4 25-34 4 3 18-24 3 2 Female 2 GENDER 1 Male 1 50 40 30 20 10 0 0 10 20 30 40 50 Note: E-banking and E-commerce data are from 2014 18 Digital context: Argentina 3 Supply side 19 Digital context: Argentina 3.1. Mobile situation Mobile-cellular telephone subscriptions Domestic mobile-telephone traffic (per 100 inhabitants) (billions of minutes) 180 143.90 120 160 100 140 Argentina 120 80 Spain 100 107.90 60 80 60 40 40 20 20 0 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Mobile population Coverage Tariffs: Mobile-cellular prepaid-1 min call (USD) 0.41 0.11 1.00 Argentina Argentina, 2015 Spain, 2015 98% 0.80 0.60 Spain 0.40 2013 99.8% 0.20 0.00 2008 2009 2010 2011 2012 2013 2014 2015 On-net Argentina Off-net Argentina On-net Spain Off-net Spain 20 Digital context: Argentina 3.2. Fixed broadband Fixed broadband speed (in Mbit/s) 2%15% 15 % 4 Fixed broadband monthly 39%39% subscription charge 3 28% Argentina 28 41.16 USD2015 2 57% % 1 Mbit/s 2014 1 59%59%57 % 50 0 2008 2009 2010 2011 2012 2013 2014 2015 40 30 Spain Argentina 20 CableCable modemmódem DSLDSL FibreFibra 10 Fixed broadband subscriptions (per 100 inhabitants) 0 2008 2009 2010 2011 2012 2013 2014 2015 X 1.23 30 5% 5% Spain Argentina 13% 17% 25 18% 18 % 20 X 1.61 15 Spain Fixed broadband monthly subscription charge 10 2014 26.7 USD2015 5 0 77 77%70% Argentina Spain % 2010 2015 2010 2015 Argentina Spain 21 Digital context: Argentina 3.3. Wireless broadband Mobile-broadband subscriptions (%) Total wireless broadband subscriptions (%) 90 80 X 3.4 X 2.8 80 70 X 13.267.2% 70 60 60 46.0% 50 50 10.1% 40 X 6.4 40 13.9% 82.0% 67.1% 67.3% 30 30 20 20 32.2% 24.0% 10 23.8% 10 5.0% 5.0% 0 0 2010 Spain 2015 2010Argentina 2015 2010 Spain 2013 2010Argentina 2013 Spain Argentina Spain Argentina Note 1: The numbers inside the bars show number of subscriptions per 100 inhabitants 22 Note 2: The total wireless broadband subscriptions indicator is composed of satellite, terrestrial fixed wireless and mobile broadband subscriptions Digital context: Argentina 3.4.
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