What is the DOI?

   Why did the ITU and Ministry of Information and Communications of the Republic of Korea create the DOI?

   How does the DOI measure digital opportunity in the Information Society?

   What are its main advantages?

   What can it be used for?

   What should it not be used for?

   How does the DOI measure the digital divide?

   What are the sub-indexes, and what are they used for?

   Where do the data for the DOI come from, and what can they be used for?

   How can I update or correct information in the DOI?

   Why is there a time lag between the reference date of the DOI and the release date of the analysis of the DOI in the World Information Society Report 2006?

   Why is the DOI not compiled for all countries?

   Is the DOI comparable over time?

   How will the DOI be improved over time?

   How can the DOI be adjusted for gender differences?

   Are there any sub-national indexes available?

   How can the DOI help developing countries and how can the DOI help policy analysis?

   When will the next update be available?

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     What is the DOI? 

The Digital Opportunity Index (DOI) is a composite index that measures “digital opportunity”, or the possibility for the citizens of a particular country to benefit from access to information that is “universal, ubiquitous, equitable and affordable” (WSIS Tunis Commitment, para 10). As such, it is a measure of each countries’ performance and prospects for progress in building an Information Society. 

An index is a variable that can be used to measure (and analyze) changes in quantities that may not otherwise be readily measurable (Taylor, 1921).  Indexes are widely used in everyday life; for example, to track the level of stock markets, to monitor changes in price levels and to index or link pension payments to the cost of living.  In economics, indexes are used to disaggregate complex trends (e.g. changes in the value of exports) into their component trends (e.g. a rise in export volumes resulting in an overall increase in the value of exports, despite a reduction in unit price).  Composite indexes are especially useful for measuring complex concepts comprising different aspects; for example, the United Nations Development Programme’s Human Development Index (HDI) measures each countries’ average achievements in three basic aspects of human development: longevity, knowledge and a decent standard of living.

Building on the experience gained from its previous work, and in direct response to the World Summit on the Information Society (WSIS) (Paragraph 28 of the Geneva Plan of Action calls for realistic international performance evaluation and benchmarking (both qualitative and quantitative), while the Tunis Agenda for the Information Society), ITU in collaboration with the Ministry of Information and Communications of the Republic of Korea created the DOI to measure digital opportunity for 180 economies for 2003/2004. This seeks to measure and monitor countries’ digital opportunity and take-up of using Information and Communication Technologies (ICTs) over time, in a joint process where governments and policy-makers take the lead in contributing and calculating the DOI for their countries. The aim is to encourage and directly involve governments and other stakeholders in the monitoring of WSIS implementation and follow-up.

     Why did the ITU and Ministry of Information and Communications of the Republic of Korea create the DOI?

The need for a composite index, such as the Digital Opportunity Index, arises for a number of reasons.

• The recognition that there are many possible routes towards building the Information Society and that those countries that are newly embarking on the path may chose a different route from those that started out during an earlier period. For this reason, a composite index that, for instance,  measures both fixed and mobile networks, or shows high-speed access as a percentage of total access, may be more effective than an approach based on individual indicators.

• The realisation that it is better to compare countries at different levels of development to their peers. The DOI permits a ranking of countries, so that performance can be measured over time among economies with a similar status in development of ICTs.

• The need expressed in the WSIS texts for tools to monitor and measure progress in bridging the digital divide.

The specific proposal to create the DOI arose out of the ongoing body of work undertaken by ITU and the Ministry of Information and Communications (MIC) of the Republic of Korea under its “Building Digital Bridges”programme, which began in June 2004. More specifically, ITU MIC Korea have followed a step-by-step process of multi-stakeholder consultation:

• The need for a composite index was identified at a seminar in Busan, September 2004;

• Consultations on the index concept continued at the WSIS Thematic Meeting on Measuring the Information Society in Geneva, February 2005;

• A “strawman” methodological document, based on an application of the DOI to 40 leading economies, was presented at the WSIS Thematic Meeting on Multi-stakeholder Partnerships for Bridging the Digital Divide, in Seoul, June 2005, and through online comments;

• The modified Index was formally launched during the Tunis Phase of the WSIS, November 2005;

• The Index has been subsequently extended to some 176 economies and updated for 2004 data, based on a new MoU between ITU and MIC Korea to create a “digital opportunity platform”. The platform is open to all WSIS stakeholders.    

     How does the DOI measure digital opportunity in the Information Society?

Composite indexes are useful in measuring complex concepts such as digital opportunity and human development as they can be used to measure different aspects and combine these measurements together in an aggregate index.

The DOI measures digital opportunity in three categories of Opportunity, Infrastructure and Usage (Figure 1).  Indicators in various data series are standardized on a scale of 0 to 1, by indexing relative to a reference value (data series and reference values are given in Table 1 below). These index scores on the sub-indexes are then averaged by simple average to give the overall DOI score for a country, between zero and 1 (no country has achieved the upper or lower limit scores). The DOI consists of the sub-indexes and data series shown in Table 1: 

Figure 1: Structure of the Digital Opportunity Index

Table 1: Sub-indexes and reference values

There are several key points about this methodology.  The DOI uses household penetration rates, as these are more appropriate for developing countries (see what are its main advantages?).

Secondly, the DOI has a fixed/mobile distinction which permits to derive separate indices for mobile or fixed infrastructure alone or combined (Figure 2). This means that the DOI can be used to track the transformation of the telecommunications industry and compare a country’s take-up and compare performance in mobile technologies, relative to fixed line telecommunications (see What can it be used for?).

Figure 2: The fixed and mobile disaggregation within the DOI

Furthermore, the DOI is particularly innovative in its focus on new technologies such as broadband (fixed and mobile) and mobile Internet.  This means that, for some countries, these data are currently zero (broadband or 3G mobile not yet launched) or the data are unavailable.  However, it also means that this Index will remain relevant for some time to come, unlike other e-indexes, which have become outdated through the rapid evolution of technology.

Published information on the website will include:

• the World Information Society Report 2006, presenting informed analysis of trends in digital opportunity for 180 economies around the world and discussion of its policy impact, to be published in June 2006.

• The statistical tables of indicators, from which the DOI was compiled.

• Tables compiling and calculating the DOI and its component sub-indexes for all 180 economies for which data are available.

• An online questionnaire and interactive spreadsheet which can be filled in by respondents, to calculate the DOI for their own country, on the basis of their data estimates.

     What are its main advantages?

The DOI is specifically designed to analyze the performance of developing countries, whilst comparing as wide a range of countries as possible using the same standards: 

• The Digital Opportunity Index aims to include all economies for which data are available, with a specific focus on developing countries.  DOI index values are available for 180 economies to date, more than any other e-index of which we are aware.

• The Digital Opportunity Index uses household penetration rates, as these are a more accurate reflection of true access to ICTs in developing countries than per capita penetration rates. The reason is that developing countries often have larger family and household size, which means that high rates of household penetration often translate into relatively lower per capita penetration rates, effectively weighted against developing countries.

• The DOI uses available data for more advanced technologies means that it will remain relevant for some time to come, which is important given the rapid evolution of ICTs.

• Further, it is intended that the DOI should be developed within a participatory process, involving governments, National Statistical Offices and other stakeholders. It is hoped that Ministries and governments will get involved and make a strong contribution.

     What can it be used for?

The DOI is intended to be used to:

• Track WSIS implementation and follow-up, in progress towards building an Information Society based on the principles advocated by the Geneva Declaration of Principles, and along the Lines of the WSIS Plan of Action.  Work on the DOI began in direct response to the Geneva Plan of Action.

• Inform policy-makers, the media and other stakeholders, capture their attention and raise awareness of the issues key to improving digital opportunities.  The DOI emphasizes that it is the opportunities offered by ICTs and what and how they are used for that are important, rather than ICTs per se.  Information technologies are key enablers of economic and social development, rather than an end goal in themselves.

• Compare and analyze countries’ performance worldwide, within regions or against each other, and track countries’ progress over time, including the impact of specific policies such as competition and liberalization.

• The DOI can be used to question national policy choices - striking contrasts in DOI scores between countries of comparable income levels should stimulate debate on government policies for ICT, skills training and education, asking why one country has achieved more from similar inputs, than another. The DOI gives greater insight into the factors that are important in building the Information Society, and how these affect each other.  It should be used to look behind trends in ICT take-up to seek underlying factors and causes.

• It can be used to track the transformation of the telecommunications industry and compare and contrast a country’s take-up and compare performance in mobile technologies, relative to fixed line telecommunications.  The DOI has a fixed/mobile distinction that analyses indicators by either fixed or mobile technology (Figure 2), so a country’s DOI score can be split into a mobile DOI and fixed DOI.  Developing countries can be analyzed in terms of the mobile technologies where they are often stronger, rather than being dragged down by lower fixed line infrastructure.

• The DOI will be used to build a global information resource in the DOI database, which will be publicly available on the DOI website.  This is intended to enrich existing data sources, raise awareness, seek new data sources and encourage countries and policy-makers to contribute to the DOI.  Its modular structure means that it can also be used in conjunction with other indices (such as UNDP’s Human Development Index) to examine the relationship of ICTs with income levels, literacy rates and standard of living.

     What should it not be used for?

The DOI is not intended and should not be used to make glib or facile comparisons between countries on the basis of uninformed or shallow analysis. It should not be used to make headline-grabbing quotes without supporting evidence, or denigrate individual countries by comparison with their counterparts.

     How does the DOI measure the digital divide?

The digital divide is a concept that can be applied in different ways. The digital divide has been defined as “disparities… in access to and use of information and communications technology (ICT) between countries (the "international digital divide") and between groups within countries (the "domestic digital divide") (Bridges.org’s authoritative survey of the digital divide, “Spanning the Digital Divide: Understanding and Tackling the Issues” (2001). The DOI can be used to evaluate differences in digital opportunity for both of these - between countries to make an assessment of the international digital divide, or within countries, between provinces or states, by gender, ethnicity, or socioeconomic grouping to make an assessment of disparities in access, according to background. Examples include differences in availability of infrastructure or advanced technologies by area or region, or urban/rural differences in income and hence in the affordability of ICTs (as a proportion of income). Highlighting internal disparities along these lines can raise national debate in many countries and promote action to address inequality. 

     What are the sub-indexes, and what are they used for?

The sub-indexes measure specific aspects of the DOI and can be used to monitor the relationships between infrastructure, opportunity and usage: for example, to determine if investment of infrastructure is being adequately matched by growth in demand for and usage of ICTs. 

The Opportunity Index measures potential access to communications, in terms of population coverage by mobile networks and tariff data. In order to participate in the Information Society, consumers must have accessibility to ICT service and must be able to afford it. The Infrastructure Index measures more straightforward access to ICTs in network indicators and household penetration rates. The Usage Index assesses the take-up and usage of more advanced broadband technologies (in the percentage of mobile and fixed broadband users) to see whether the opportunity to use ICTs and the availability of infrastructure is feeding through into usage of ICTs by the population.

The classification is sequential, with each category is dependent on the previous (Figure 1). In order to have access to infrastructure, users must have the opportunity to be covered by the service and able to afford it. Usage depends on having infrastructure and a device. This progression is in fact reflected in the DOI results, where the Opportunity Index is consistently higher than the Infrastructure Index, which in turn is higher than the actual Usage Index.

     Where do the data for the DOI come from, and what can they be used for?

The information in the DOI will be published online and can be updated in several ways.  It can be updated online, using the questionnaire and interactive spreadsheet online (due to be published shortly).  However, official submissions will only be accepted after verification from official government Ministries. Revisions to data should be supported by accompanying evidence.

The ITU is happy to hear your comments and welcomes all feedback as an essential means of improving the quality of our work. All views and comments can be sent by email and we will do our best to take them into account in future revisions of the DOI.   

Every effort has been made and we strive to present the most up-to-date data possible. Due to the time needed to collect, compile and publish relevant and internationally comparable data series, it is inevitable that a time lag creeps into publication. The time lag between the reference date of the DOI (2003/2004) and the publication of the World Information Society Report 2006 is eighteen months, which compares favourably to the time lags involved in the UNDP’s Human Development Report and UNIDO’s Competitive Industrial Performance Index. 

The DOI has been compiled for 180 economies for which adequate data were available for 2003/2004. The DOI has also been calculated for around 40 economies for the years back to 2000. Lack of data has prevented a historical Digital Opportunity Index being calculated for more countries or more years.  In some cases, where there is a missing intermediate value in a trend line, data has been interpolated. The data series with the lowest data availability was mobile coverage of the population, which was an important, but limiting, data series in measuring the access of the population to mobile services. The proxy variable of proportion urban population was used in place of this variable to ensure that good country coverage was achieved and that the DOI was calculated for as many economies as possible. For some other economies, data has been estimated on the basis of other data sources and industry press.   

The DOI values are comparable over time, when they are calculated using the same methodology and comparable trend data. Every effort has been made to ensure that data are comparable and consistent.  Lack of comparable data is in fact what limits the set of countries for which the DOI has been calculated to around 40 in 2000. 

ICTs continue to evolve rapidly, and this has implications for the DOI data.  Mobile handsets are constantly being upgraded, while the technology is fast replaced, with rapid obsolescence. In terms of Internet access, broadband ‘always-on’ technologies are fast catching up with dial-up in industrialized economies.  The DOi has deliberately adopted a ‘futuristic focus’ incorporating new and recent technologies (such as broadband and mobile Internet subscribers) in order to ensure that it remains relevant and comparable for some time to come.

In the fast-changing field of ICTs, future developments are difficult to predict. However, the DOI has already undergone several revisions and refinements to improve the methodology.  It was discussed extensively at the WSIS Thematic Meeting in Seoul, Korea in June 2005.  

In response to changes in technology, data series will continue to adapt and evolve, either within the data series or by replacement with a new data series.  As one example, the Internet access tariffs included in the DOI mostly referred to prices of residential dial-up Internet access as the cheapest way of accessing the Internet in most countries. However, in OECD countries, dial-up is fast being replaced by broadband, so this data series now mostly refers to broadband prices for these countries, rather than dial-up.  The DOI could be combined with other indices – for example, the HDI to explore the relationship between human development and digital opportunity more fully.

Paragraph 28a of the Geneva Plan of Action calls for performance evaluation and benchmarking, including gender analysis. The DOI can be used to assess and monitor differences in access to ICTs by gender. Household and tariff data cannot be disaggregated by gender (it is assumed that all members of the household can access the telephone, whether male or female, and tariffs are the same for all).  However, studies in some countries have shown different levels of access for male and female Internet users and mobile phone users.  The DOI can be compared for different groups within society to take into account and evaluate differences in access. 

Similarly, the DOI can be calculated for regions, towns and provinces within a country, nation or state, to assess different levels of access within an economy.  Measurements of the DOI within a country can be used to track the domestic digital divide or urban/rural disparities in access – not just in levels of access (where it is usually assumed that urban access will always be greater than rural access), but in types of access, with mobile or satellite technologies often used for more remote rural areas, in preference to fixed line infrastructure. The fixed/mobile split within the DOI means that the DOI can be readily used to assess differences in the type of access (Figure 2).

The Korea Agency for Digital Opportunity has launched a promising project to trial the use of the DOI to measure digital opportunity and access to ICTs across the Republic of Korea. 

The DOI can help developing countries by informing and improving policy choices.  It can be used to evaluate WSIS implementation and follow-up and to assess countries’ progress in building an Information Society.  Given highly unequal levels of income and access to ICTs in some countries (for example, the high levels of income inequality observed by many studies in Latin America – (see Deininger, Klaus, and Squire, Lynn, “New ways of looking at old issues: inequality and growth” (1996), World Bank, Washington), it is vital to make some assessment of differences in access to ICTs both between countries and within countries, in order to direct resources where they are most needed.   

Countries’ policies and performance can be compared to determine which policies were more successful, and why others may not have worked so well.  Analysis of the impact of policies can help policy-makers understand the consequences of their decisions, and modify and refine some policies to ensure that under-served areas and social groups are included and also benefit.  

It is planned to update the Digital Opportunity Index annually, to monitor countries’ progress towards an Information Society.