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1
Digital context: Uruguay
Digital Context:
Uruguay
NOVEMBER
2016
2
Digital context: Uruguay
1 Digital scenario
2 Demand side
3 Supply side
4 Regulation side
• Overview
Outline
3
Digital context: Uruguay
Overview
• Uruguay is better off than most Latin American countries in terms of the digitization index,
except for Chile
• Uruguay has room for improving ICT regulation and encouraging Internet use in enterprises
• Uruguay’s Internet use is close to developed countries, with a high frequency of use
• Home is the main place for Internet access and it is becoming even more so
• Lack of skills is considered the main barrier to Internet use; this
perception increases with age
• The use of e-banking and e-commerce is fairly widespread in
Uruguay, in both cases, it stands above 20%
• The fixed broadband monthly subscription charge in Uruguay is 17.9
USD, which is lower than in Spain (26.7 USD)
• 45.5% of Uruguay’s population has a mobile-broadband subscription
4
Digital context: Uruguay
Digitization Index Digital scenario:
1
5
Digital context: Uruguay
The index is made up of indicators related to the level of infrastructure, ICT adoption and usage, costs and regulation conditions
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
1.1. Structural Digitization Index, 2015
Peru
Mexico
Colombia
Uruguay Chile
United States
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1
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Digital context: Uruguay
Affordability ICT Regulation Infrastructure
Individual use Enterprise use Content
PER CHL
MEX
OCDE
URY USA
GBR
00.10.20.30.40.50.60.70.80.9
1
PER URY MEX
CHL
OCDE USA
GBR
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1
CHL URY
PER MEX OCDE
USA
GBR
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1
PER MEX
USA
CHL OCDE
URY
GBR
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1
URY MEX PER
OCDE
CHL USA
GBR
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1
OCDE PER
MEX
USA CHL
GBR
URY
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1
1.2. Digitization Index 2015: Dimensions
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Digital context: Uruguay
Demand side 2
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Digital context: Uruguay
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2010 2013
Daily internet use Weekly internet use Monthly internet use
There are few differences between owning a mobile phone, computer or Internet
(%)
Frequency of Internet use ICT access and Internet use
Increasing
frequency
of Internet
use
2.1. Computer and Internet: Access at home and usage
Note: Use of Internet is in the last 3 months
0
10
20
30
40
50
60
70
80
Internet access Computeraccess
Mobile access Internet use
2010 2013
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Digital context: Uruguay
2.2. Internet access at home: Evolution across regions and income
0
10
20
30
40
50
60
70
80
90
100
MontevideoHigh
MontevideoMedium-High
MontevideoMedium
MontevideoMedium-Low
Periphery Litoral Norte Costa Este MontevideoLow
Centro Litoral Sur Norte
Household
s w
ith I
nte
rnet
access (
%)
2013 2010
AVERAGE 2013
Note: Montevideo is divided into six different levels: five depending on the level of income and one on its metropolitan area (Periphery)
10
Digital context: Uruguay
0
10
20
30
40
50
60
16-24 25-34 35-44 45-59 +60
Lack of skills
Without a device to connect
Lack of necessity
(%)
Lack of skills is the main barrier for Uruguayans who do not use Internet
Barriers: perception by age
2.3. Internet access: Barriers
0
5
10
15
20
25
30
35
40
45
50
Lack ofnecessity
Lack of skills Without adevice toconnect
Too expensive Lack of utility
Non-I
nte
rnet
users
(%
)
2010 2013
Non-Internet users in 2013
Non-Internet users in 2010
Cost is the
least
important
barrier for
non-users
of the
Internet
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Digital context: Uruguay
Home and work are gaining importance compared to other access points
2.4. Places for Internet access (last 3 months)
0
10
20
30
40
50
60
70
80
90
100
Home Work Education centre Community centre Private centre Others
2010 2013
+4.0 p.p. Internet use in 2010: Internet use in 2013:
65.8% 69.8%
Note: Options are not exclusive. Individuals can select more than one place
12
Digital context: Uruguay
0
10
20
30
40
50
60
70
80
90
100
Leisure Communication Information Education E-government E-commerce E-banking
2010 2013
There are no changes in the preferences of Internet users between 2010 and 2013
2.5. Internet activities: Usage in the last 3 months
(%)
Most
popular
activities
Note: Options are not exclusive. Individuals can select more than one activity simultaneously
x 1.86 x 1.49
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Digital context: Uruguay
2.6. E-banking: Evolution by geography and income
0
5
10
15
20
25
30
35
40
45
50
MontevideoHigh
MontevideoMedium-High
MontevideoMedium
Periphery Litoral Sur Litoral Norte MontevideoMedium-Low
Costa Este Centro MontevideoLow
Norte
Inte
rnet
users
(%
)
2013 2010
AVERAGE 2013
Note: Montevideo is divided into six different levels: five depending on the level of income and one on its metropolitan area (Periphery)
14
Digital context: Uruguay
2.7. E-commerce: Evolution by geography and income
0
10
20
30
40
50
60
MontevideoHigh
MontevideoMedium-High
MontevideoMedium
Periphery MontevideoMedium-Low
Litoral Sur Costa Este Centro MontevideoLow
Litoral Norte Norte
Inte
rnet
users
(%
)
2013 2010
AVERAGE 2013
Note: Montevideo is divided into six different levels: five depending on the level of income and one on its metropolitan area (Periphery)
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Digital context: Uruguay
Internet
2.8. Geographical distribution in 2013: Usage in the last 3 months
E-banking E-commerce
High
Medium
Low
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Digital context: Uruguay
2.9. Population characteristics: Internet use (%)
100 80 60 40 20 0 0 20 40 60 80 100
2010 2013
AGE
EDUCATION
EMPLOYMENT
GENDER
Primary
16-24
Tertiary
Unemployed
No studies
60+
Secondary
Student
Employed
35-44
25-34
Female
Male
45-59
Note: The differentiation of individuals according to their education levels varies between 2010 and 2013. This could affect the reported results.
17
Digital context: Uruguay
2.10. Population characteristics in 2013 (%)
E-banking E-commerce
0102030405060 0 20 40 60 80
Primary
16-24
University
Unemployed
No studies
60+
Secondary
Student
Employed
35-44
25-34
Female
Male
45-59
AGE
EDUCATION
EMPLOYMENT
GENDER
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Digital context: Uruguay
Supply side 3
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Digital context: Uruguay
3.1. Mobile situation
0
20
40
60
80
100
2005 2007 2009 2011 2013
Domestic mobile-telephone traffic (billions of minutes)
Mobile-cellular telephone subscriptions (per 100 inhabitants)
X 14.68 Uruguay
Spain
Tariffs: Mobile-cellular prepaid-1 min call (USD)
0.26 Uruguay, 2015
0.11 Spain, 2015
Uruguay 100%
Spain 99% 2013
Mobile population Coverage
0
0.2
0.4
0.6
0.8
1
1.2
2008 2009 2010 2011 2012 2013 2014 2015
On-net Spain Off-net Spain
On-net Uruguay Off-net Uruguay
020406080
100120140160180
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
160.20
107.90
20
Digital context: Uruguay
Cable módem DSL Fibra
3.2. Fixed broadband
0.00
0.20
0.40
0.60
0.80
1.00
1.20
2008 2009 2010 2011 2012 2013 2014 2015
1 Mbit/s
Fixed broadband subscriptions (per 100 inhabitants)
28%
57%
Uruguay
2013
18%
77%
5%
Spain
2013
15%
Fibre DSL Cable modem
Fibre DSL Other connections
Fixed broadband speed, (in Mbit/s)
05
10152025303540
Spain Uruguay
Fixed broadband monthly
subscription charge
17.9 USD2015
Fixed broadband monthly
subscription charge
26.7 USD2015
0
5
10
15
20
25
30
Uruguay Spain
2010 2015 2010 2015
X 2.31 X 1.23
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Digital context: Uruguay
Note 1: The numbers inside the bars show number of subscriptions per 100 inhabitants
Note 2: The total wireless broadband subscriptions indicator is composed of satellite, terrestrial fixed wireless and mobile broadband subscriptions
3.3. Wireless broadband
Total wireless broadband subscriptions (%) Mobile-broadband subscriptions (%)
Around 99% of total wireless broadband subscriptions correspond to mobile-broadband type
0
10
20
30
40
50
60
70
80
Uruguay Spain2010 2013 2010 2013
Uruguay Spain
46.0%
67.2%
24.1%
13.9%
0
10
20
30
40
50
60
70
80
Uruguay Spain
23.8%
10,1
%
13.4%
Uruguay Spain
45.5%
66.8%
2010 2013 2010 2013
X 3.3
X 2.8
X 3.4
X 2.8
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Digital context: Uruguay
5269
660
6323
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
2010 2014 2010 2014
Note: Values inside bars represent total investment in millions of USD
3.4. Annual investment in telecommunication services
Annual investment in telecommunication services (millions of USD, % GDP)
Uruguay Spain
X 1.24
X 0.79
583
23
Digital context: Uruguay
Regulation side 4
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Digital context: Uruguay
DNK
FIN
FRA
DEU
ITA ESP
GBR
USA
ARG
BRA
CHN
COL
IND
MEX
PER
SGP
TUR
URY
VEN
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7S
oft
ware
piracy r
ate
, %
soft
ware
insta
lled
Laws relating to ICT, 1-7 (best)
DNK
FIN
FRA
DEU
ITA
ESP
GBR
USA
ARG
BRA
CHN
COL
IND
MEX
PER
SGP
TUR
URY
VEN
0
1
2
3
4
5
6
7
0 1 2 3 4 5 6 7
Eff
icie
ncy o
f le
gal fr
am
ew
ork
in c
halle
ngin
g r
egs,
1-
7
Laws relating to ICT, 1-7 (best))
4.1. ICT laws: Efficiency and Piracy
High income OECD countries Rest (Uruguay is highlighted in green)
Source : BBVA Research & World Economic Forum Source: BBVA Research & World Economic Forum
25
Digital context: Uruguay
4.2. Ease of doing business & entrepreneurship
Source: BBVA Research & World Economic Forum Source: Doing Business (World Bank Group)
High income OECD countries Rest (Uruguay is highlighted in green)
0 2 4 6 8 10 12 14 16
ArgentinaEl SalvadorGuatemala
BoliviaAustriaMexico
JamaicaCosta Rica
TurkeyCanada
GermanyColombia
Korea, RepPeru
BrasilSpain
UruguayChile
United KingdomAustralia
No. new firms per 1,000 workers
AUS
CHL
DNK
FIN
FRA
DEU
ITA
NOR
ESP
SWE
KOR GBR SGP
MEX
COL PER TUR
MLT
ARG BRA
IND
URY
0
20
40
60
80
100
120
140
160
0 5 10 15 20
Ease o
f doin
g b
usin
ess R
ankin
g
No. new firms per 1,000 workers
26
Digital context: Uruguay
Uruguay 4.0
Median 3.7
4.3. Political and regulatory environment
Weak
Medium
High
No data
Weak
Medium
High
No data
Source: BBVA Research & World Economic Forum, 2015
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.
The political and
regulatory
environment of
Uruguay is similar
to the global
median, but above
it
27
Digital context: Uruguay
Appendices 5
28
Digital context: Uruguay
Composition of the Digitization Index
Users
adoption
Firms
adoption
Infrastructure Cost
Regulation
Content
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).
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.
What extent do businesses use ICT for transactions
with other businesses in the country?
What extent do businesses use 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]
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.
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 well-
developed]
The Government Online Service Index assesses
the quality of governments’ delivery of online
services on a 0-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.
Users
adoption
Infrastructure
Firms
adoption
Regulation
Cost
Content
29
Digital context: Uruguay
Source of data from the Demand Side: EUTIC
Survey elaborated by the National Statistics Institute of Uruguay (INE) for 2010 and
2013
This is a special study for households and individuals on the Use of Information
Technology and Communications (EUTIC) in Uruguay
The main objective is to measure the coverage, access and use of information and
communications technology in households and by individuals
The sample size is composed of 4,183 distributed households, 47% in Montevideo,
11% in the Periphery and 42% in the urban Interior, those resident in towns of 5,000
or more. This sample comprises a total of 7,424 people aged 6 years and older. The
total sample size and stratum is determined so as to obtain the desired precision and
confidence in the estimation of some primary interest parameters at the level of sub-
universes to be investigated
30
Digital context: Uruguay
The World Telecommunication/ICT Indicators database contains time series data
for the years 1960, 1965, 1970 and annually from 1975 to 2015. These data are
available for over 200 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
Source of data from the Supply Side: World Telecommunication/ICT Indicators database (ITU, 2016)
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Digital context: Uruguay
Financial Inclusion David Tuesta Lead Economist
Mauro N. Acuña Víctor Adame Javier Alonso Alfonso Arellano Noelia Cámara Rosa Mª Oliveros Lucía Pacheco
For further information, please contact [email protected] or [email protected]
Argentina Gloria Sorensen Chief Economist
Marcos Dal Bianco María Celeste González Adriana Haring Jorge Alberto Lamela Juan Manuel Manías