Digital Context: Paraguay
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- Edward Clinton Hamilton
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1 MARCH 217 Digital Context: Paraguay 1
2 Outline Overview 1 Digital scenario 2 Demand side 3 Supply side 4 Regulation side 2
3 Overview Paraguay has room for improving in terms of the Digitization Index, particularly on affordability and content dimensions Paraguay almost duplicates Internet use between 211 and 214, but it is still lower than other Latin American countries Mobile phone is the most important device to access Internet The use of e-banking and e-commerce is limited in Paraguay. It is not larger than 4% in both cases. The prices of one minute call in Paraguay are lower than in developed countries 39.23% of Paraguay s population has a mobile and wireless broadband subscription in 215 Paraguay shows a high piracy rate and a low efficiency of the legal system The political and regulatory environment of Paraguay is below the global median 3
4 1 Digital scenario: Digitization Index 4
5 1.1. Structural Digitization Index, 215 1,,9,8 United States,7,6 Chile,5,4,3 Argentina Peru Mexico Colombia,2,1 Paraguay, Algeria Qatar Nigeria Pakistan Bangladesh Paraguay India Venezuela Vietnam Peru Argentina Egypt Ukraine Greece Philippines Indonesia Morocco Thailand Mexico Sri Lanka Italy Poland Bulgaria Cyprus China Saudi Arabia Croatia Colombia Slovenia Kazakhstan Russian Federation Slovak Republic Hungary Turkey Romania Uruguay Luxembourg Brazil Czech Rep. South Africa Ireland Chile United Arab Emirates Belgium Spain Singapore Austria Portugal Germany Malaysia Denmark Latvia Canada Australia France United States Sweden Netherlands Finland Lithuania Korea, Rep. Japan Estonia 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
6 1.2. Digitization Index 215: Dimensions 1,9,8,7,6,5,4,3,2,1 Affordability ICT Regulation Infrastructure ARG CHL PER PRY OCDE URY USA GBR 1,9,8,7,6,5,4,3,2,1 PRY ARG PER MEX URY OCDE CHL GBR USA 1,9,8,7,6,5,4,3,2,1 PER ARG URY PRY MEX OCDE GBR USA 1,9,8,7,6,5,4,3,2,1 MEX PRY PER Individual use Enterprise use Content ARG USA GBR URY OCDE 1,9,8,7,6,5,4,3,2,1 ARG PRY PER MEX OCDE CHL GBR USA 1,9,8,7,6,5,4,3,2,1 PRY ARG MEX PER OCDE CHL URY GBR USA Nota: En el indicador de infraestructura, si se consideraran variables más relacionadas con Internet como cobertura 3G o cantidad de servidores seguros de Internet en el país, la posición de Paraguay mejoraría y sobrepasaría a la de países como México o Perú. 6
7 2 Demand side 7
8 2.1. Computer and Internet: access at home and usage ICT access and Internet use (%) Internet access Computer access Mobile access Internet use Internet use in 211 Internet use in ,6 p.p. 22,83% 41,43% Significant increase in Internet access and Internet use between 211 and 214 Note: use of Internet over the last 3 months. 8
9 2.2. Internet use: evolution by geographies 7% 6% Internet users 5% 4% 3% Average 214 2% 1% % Asunción Central Alto Paraná Itapúa Caaguazú San Pedro Resto Asunción, Central and Alto Paraná are the departments with higher Internet use 9
10 2.3. Places for Internet access (last 3 months) (%) Home Work Smartphone Education centre Public centre Other Smartphones become the favorite option to access Internet in 214 Note: % over Internet users. Use of Internet over the last 3 months 1
11 2.4. Internet activities: usage over last 3 months 9 8 Most popular activities (%) Social Networks Instant Messaging Telephone or communication Information Education Games, videos, movies E-Commerce E-banking Other 214 Social Networks and Instant Messaging are the most popular activities among Internet users Note: % over Internet users. 11
12 2.5. E-commerce and e-banking 3,5% 3,% 2,5% 2,% 1,5% 1,%,5%,% E-commerce E-banking Use of e-banking and e-commerce in Paraguay shows very moderate results The percentages have declined between 211 and 214, especially, because of the increase of the number of Internet users (it has been higher than the growth in e-commerce and e-banking users) Note: % over Internet users. 12
13 2.6. Geographical distribution in 214: usage over the last 3 months Internet use Internet use in Smartphone High Medium Low Note: "High" is above average, "Medium" around average and "Low" is below average. % over total population. Boquerón and Alto Paraguay departments are not included in the EHP 214 survey. 13
14 2.6. Geographical distribution in 214: usage over the last 3 months Social Networks Instant Messaging High Medium Low The averages for social networks and instant messages are 83% and 69%, respectively These figures are calculated over the total number of Internet users Note: "High" is above average, "Medium" is around average and "Low" is below average. % over Internet users. Boquerón and Alto Paraguay departments are not included in the EHP 214 survey. 14
15 2.7. Population characteristics: Internet and smartphone use (%) Smartphone Internet use DENSITY INCOME AGE GENDER Rural Urban Quintile 5 Quintile 4 Quintile 3 Quintile 2 Quintile Female Male Note: % over total population. 15
16 3 Supply side 16
17 3.1. Mobile situation Mobile-cellular telephone subscriptions (per 1 inhabitants) Domestic mobile-telephone traffic (billions of minutes) Paraguay Spain Mobile population coverage 213 Spain 99.8% Paraguay 99.7% Tariffs: Mobile-cellular prepaid-1 min call (USD) 1,2 1,8,6,4,2.4 Paraguay, Spain, On-net Paraguay On-net Spain Off-net Paraguay Off-net Spain 17
18 3.2. Fixed broadband 8% 15 % 39% 57 % 53% Paraguay % Cable modem DSL Fibre 13% 5% Spain % % 17% 18 % Fixed broadband monthly subscription charge USD Spain Paraguay Fixed broadband speed (in Mbit/s) Fixed broadband monthly 15 subscription charge USD215 X % 3.14% ,2 1,,8,6,4,2, Fixed broadband subscriptions (per 1 inhabitants) Spain Paraguay Paraguay 23.7% Spain X % Mbit/s 18
19 3.3. Wireless broadband Mobile-broadband subscriptions (%) Total wireless broadband subscriptions (%) 9 X X % 82.69% 1.1% X % % X % % % % 21 Spain % 21 Paraguay % 21 Spain Paraguay 215 Spain Paraguay Spain Paraguay Note 1: The numbers inside the bars show number of subscriptions per 1 inhabitants Note 2: The total wireless broadband subscriptions indicator is composed of satellite, terrestrial fixed wireless and mobile broadband subscriptions 19
20 4 Regulation side 2
21 4.1. ICT laws: Efficiency and Piracy 6 1 Efficiency of legal system in challenging regs, 1-7 (best) PRY FIN DEU USA URY FRA IND CHL CHN DNK TUR MEX ESP BRA COL PER ITA ARG VEN GBR SGP Software piracy rate, % software installed PRY ARG VEN CHN URY PER TUR IND CHL MEX COL BRA ITA ESP FRA SGP DEU NOR GBR FIN LUX USA Laws relating to ICT, 1-7 (best) Laws relating to ICT, 1-7 (best) High income OECD countries Rest (Paraguay is highlighted in green) Source: BBVA Research & World Economic Forum Source: BBVA Research & World Economic Forum 21
22 4.2. Political and regulatory environment (1-7 best) Weak Medium High No data Median 3.7 Paraguay 2.6 The political and regulatory environment of Paraguay is below the global median Source: BBVA Research & World Economic Forum, 215 Note: In order to measure the political and regulatory environment, indicators such as ICT-related laws, piracy rates, efficiency of legal system and protection of intellectual property are taken into account. 22
23 5 Appendices 23
24 Composition of the Digitization Index Infrastructure Infrastructure Fixed (wired)-broadband speed, in Mbit/s. International Internet bandwidth. It is measured in bits per second per Internet users. Percentage of total population covered by a mobile network signal. International Internet bandwidth in megabits per second (Mbit/s). Cost Cost Monthly subscription charge for fixed (wired) broadband Internet service (PPP $). Fixed (wired) broadband is considered to be any dedicated connection to the Internet at downstream speeds equal to, or greater than, 256 kilobits per second, using DSL. Users Users adoption adoption Active mobile-broadband subscriptions. Fixed (wired)-broadband subscriptions. Mobile telephone subscriptions Percentage of households with Internet access at home. Proportion of individuals that have used the Internet in the last 12 months. how widely used are virtual social networks in the country. Regulation Regulation How developed are your country s laws relating to the use of ICT (e.g., electronic commerce, digital signatures, consumer protection)? [1 = not developed at all; 7 = extremely welldeveloped] Firms adoption Firms adoption What extent do businesses use ICT for transactions with other businesses in the country? What extent do businesses use the Internet for selling their goods and services to consumers in the country? What extent do businesses adopt new technology in the country? [1 = not at all; 7 = to a great extent] Content Content The Government Online Service Index assesses the quality of governments delivery of online services on a -to-1 (best) scale. There are four stages of service delivery: Emerging, Enhanced, Transactional and Connected. In each country, the performance of the government in each of the four stages is measured as the number of services provided as a percentage of the maximum services in the corresponding stage. 24
25 Source of data from the Demand Side: EPH The survey is elaborated by the General Directorate of Statistics, Surveys and Censuses of Paraguay for the years 211 and 214. The objective of the Permanent Household Survey (EPH) is to investigate the economic activity of individuals based on their socio-demographic characteristics. It also provides information on the characteristics of housing, access to basic services and goods possession. 25
26 Source of data from the Supply Side: World Telecommunication/ICT Indicators database (ITU, 216) The World Telecommunication/ICT Indicators database contains time series data for the years 196, 1965, 197 and annually from 1975 to 215. These data are available for over 2 economies, however the availability of data for the different indicators and years can vary The data are collected from an annual questionnaire sent to official economy contacts, usually the regulatory authority or the ministry in charge of telecommunication and ICT. Additional data are obtained from reports provided by telecommunication ministries, regulators and operators and from ITU staff reports 26
27 Financial Inclusion David Tuesta Lead Economist Javier Alonso Alfonso Arellano Noelia Cámara Hicham Ganga Rosa Mª Oliveros Lucía Pacheco For further information, please contact or 27
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