Measuring the diffusion of the Internet

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INET’99 Dimensions of Internet Diffusion San Jose, California June 23 1999

Measuring the diffusion of the Internet

Michael Minges, minges@itu.int Telecommunication Development Bureau (BDT) International Telecommunication Union (ITU)


Why is measuring Internet diffusion important?  Access to the Internet provides important benefits  Policies influence Internet access (e.g., competition, pricing, education, etc.)  Internet diffusion indicators help measure how effective policies are


Internet diffusion indicators  Host computers  Subscribers  Users  Overall access, institutional connectivity and “limitation” indicators

Singapore

Internet Profile 1997 500’000 Users 267’400 Subscribers 57’600 Hosts 1.9% of pop. 8.6% of pop. 16.1% of pop. Source: Nielsen, TAS, Network Wizards.


Internet hosts  Most widely “misused” indicator of Internet access  “Tight” definition  “Scientific” method  Regular surveys  Marks minimum size of Internet

Internet hosts Worldwide, millions

7.3 43.2

Per 1'000 people

1.05 0.06

4.9

0.3 Oct-90

Jan-95

Jan-99

Source: ITU adapted from Network Wizards.


Host limitations Internet host penetration, Mid-1997 Original Adjusted

50 40 30 20 10

lia str a Au

de n Sw e

Ca n

ad a

0 US A

 Methodology changes  Differences between Network Wizards, RIPE and national data  Does not accurately reflect geographical location  Does not really measure accessibility

Note: Original as reported by Network Wizards. Adjusted according to location.Source: OECD.


Internet subscribers  Well-defined  Increasingly available  Marks minimum boundary of users

Singapore: Internet Dialup subscribers, 000s As % of population

13.8% 13.5%

12.9%

13.0%

437

427

413 406

Jan-99 Feb-99 Mar-99 Apr-99 Source: Telecommunications Authority of Singapore. http://www.tas.gov.sg


Subscriber limitations  Can be many users utilising one account  Statistic not universally available  Does not measure overall access

Hong Kong: Number of Internet subscribers, December 1998, 000s 800 700

E-mail accounts Subscribers

600 500 400 300 200 100 0 Dial-up

Leased-line

Source: Office of Telecommunication Authority. http://www.ofta.gov.hk/index_eng1.html


Internet users  Better indicator of diffusion than hosts  Previously multipliers, now surveys  Data improving as market researchers, statistical agencies and others compile user statistics

Internet users, Worldwide, millions % of population

2.5%

1.7%

1.0% 0.5%

150

98

55

26 1995

1996

1997

1998

Source: NUA (http://www.nua.ie)


User limitations  Loose definitions makes comparing users problematic  Wide variation in estimates  Usage may not be as important as accessibility

Internet Users Millions 1.6 1.4 9/97 NASS COM

1.2 1.0

9/97 IDC

0.8 0.6 0.4

“There is no way to determine how many users are on the net, besides making guesses and estimates.” —Network Wizards

0.2 0.0

11/97 ABS Australia

11/97 Wired India

Source: ITU adapted from NUA Internet Surveys.


Accessibility Spain Percent of population:

 Percentage of population with access to Internet is a key indicator  The location from where users access the Internet (e.g., home, work, school) is also meaningful  The percent of schools and businesses connected to the Internet are other useful indicators

26% 19%

6%

Used Internet in last month

8%

Use computer Use computer regularly Have access to Internet

March ‘99

Note: Percentages refer to share of Spanish population 14 years and older. Source: http://www.aui.es/


Awareness  Singapore is typical of developed countries where there is a high level of awareness of the Internet  In developing countries, which tend to have lower levels of literacy and media exposure, many citizens are unaware of the Internet and its benefits

Singapore: Level of Internet Awareness All who are aware of Internet 1.93m

92% 2%

All who ever bought via Internet 40,000

All adults aged 18-55 2.09m

32%

All who ever used Internet 677,000

Source: National Computer Board. http://www.ec.gov.sg/ECSurvey.html


Don’t forget Internet & Income, 1997 10%

1%

0.1%

0.01%

Internet hosts as % of population

 Telephone lines  Personal computers $ Income  Education

R2=0.74 Estonia

Chile UAE

GDP per capita, US$

0.001% $1'000

$10'000

Note: Based on 100 countries. Logarithmic scale. Source: ITU adapted from Network Wizards and UN data.


Conclusions NOW BEFORE  “It is not possible  An increase in organisations to determine the compiling exact size of the Internet statistics Internet, where is leading to hosts are improvements in located, or how data quality and many users availability there are.” —Network Wizards

FUTURE  Data on geographical location of hosts  Consistent definition of user  Improved coverage of developing countries

From a policymaking perspective, percentage of population with access to the Internet is the most meaningful indicator.


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