Description of the current state of the Interent in Chile. Sergio Godoy, professor from the Catolic University of Chile. Lecture given at the Oxford Internet Institute.

1. www.wipchile.cl
Exploring whys and hows:
hows:
the internet in Chile and
the WIP 3.0 project*
By Sergio Godoy E. MBA PhD,
E.
Director or Research & Postgraduate Studies
School of Communications
Universidad Catolica de Chile
sgodoye@puc.cl
* A project executed with the Institute of Sociology and the School of Engineering
(Fondecyt Nº1110098) and the support of the Ministry of Economics (MINECON)
CENTRO DE ESTUDIOS DE LA ECONOMÍA DIGITAL
CÁMARA DE COMERCIO DE SANTIAGO

2. www.wipchile.cl
Contents
• People and organisations: WIP / BIT
• BIT Chile main descriptive results 2010
• WIP Chile main descriptive results 2010
• Qualitative comparison UK/Chile: highlights
• The WIP/BIT 3.0 project
2

3. www.wipchile.cl
WIP & BIT and their common fields
The
information
economy BIT PROJECT
WORLD INTERNET PROJECT IT usage & impact on business
Overall IT
Web & IT usage in everyday life of people and the economy
usage &
adoption Fields:
Fields: In companies:
•IT adoption & budgets
IT adoption trends & expendituresTransactions & •Organisational impact
Attitudes e-commerce (workforce, structure,
Media usage outsourcing)
Social links •Links with partners & clients
E-commerce Performance •Business results
Impact on offline activities at work &•Globalisation/geographical reach
Impact at work (productivity) school •Chile: reputation
Impact at school (performance)
State of the Information Economy
Corporate
communication
& reputation
3
3

4. www.wipchile.cl
The information economy sectorChile, SenKorea and the USA’s GNP
Gráfico 1. Evolución comparada del in información Chile, Corea y EE.UU.
1990-2003
(porcentaje del PIB de cada país) Fuente: Avilés, 2007
Source: BIT teams in each country
Economía de la información 1990-2003
70.00%
65.00%
US
60.00%
Korea
Korea
US
55.00%
Korea Chile
Chile
50.00%
45.00%
40.00%
1990 1992 1995 1996 1997 2000 2003
US (55.87%) (63.00%)
Chile (51.21%) (51.73%)
Korea (51.93%) (56.54%) (59.04%)
US Chile Korea
4
BIT Chile by S Godoy
Logarítmica (US) Logarítmica (Chile) Logarítmica (Korea)
4

5. www.wipchile.cl
5

6. www.wipchile.cl
Chilean GNP – 2003
Work and
occupation
Products Services patterns in an
39% 61% (information)
economy
17% Material
31% 48%
44% Information
52%
8%
6

7. www.wipchile.cl
7

8. www.wipchile.cl
Selected organisational impacts of IT in firms, 2007-2010
2007-
(% of respondents strongly agree /agree on an increase of the following phenomena)
Flatter organisation 44
51
Wider mgmt's span of control 54
47
Geographical dispersion of the 59
organisation 42
Employees working from their homes 60
38
Tele-conferencing 63
33
Worker collaboration with ad hoc tools 67
56
IT skills for low level employees 81
73
Nº of employees facing a screen 83
63
Workers need to retrain constantly 87
81
Mgmt needs intelligent info 87
76
0 20 40 60 80 100
2010 2007
8

9. www.wipchile.cl
Internet users in selected WIP countries, 2009 */ 2010**
countries,
100
80 78 77 77
80 73 70 67
61 59
60 55
51 48 47 45 42
37
40 32
20
0
Macao*
Mexico**
Sweden**
Canada*
Australia*
Israel*
USA**
New Zealand*
Czech Republic**
Chile**
Italy**
Hungary*
Portugal**
Singapore*
Colombia**
Chile (Santiago)**
Britain**
Helsper & Godoy-Chile & UK comparison 9

10. www.wipchile.cl
Chilean internet users according to age, 2009
80%
70%
60%
50%
40%
30%
20%
10%
0%
5-9 10-14 15-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65-60 70-74 75-79 80-84 85+
Source: based on CASEN survey data.
10

11. www.wipchile.cl
Chilean non users of the internet,
2010 vs. 2008
2008 2010
3% 6%
9%
6%
8%
12%
40% 42%
39% 34%
12-17 18-24 25-34 35-49 50-64
12-17 18-24 25-34 35-49 50-64
In 2010 adults aged 60 to 64 are included.
11

12. www.wipchile.cl
Chilean Internet users according to income quintiles 2000, 2003, 2006, 2009
80%
70%
70%
65%
59%
60%
50%
50%
44% 45%
40% 38%
32% 33% 33%
30% 28%
25%25%
22% 22%
20% 18%
15% 15%
10%
10% 9%
0%
Quintile I (lowest) Q II Q III Q IV Quintile V (highest)
2000 2003 2006 2009
Source: based on CASEN survey results
12

13. www.wipchile.cl
Percentage of internet users according to place of usage
100% according to income level, 2010
90%
90% • Highest income
84% 83% (c1) uses in all
81% 82%
78% 79% places; lowest (D/E)
80%
75%
less at home and
70% more in paid-for
61% locations
60%
52%
49%
50%
44%42%
40% 37%
35% 35%
32%
28%
30%
22%
20% 15%
10%8%
10% 8% 7%
0%
School (N=165) Home (N=406) Work (N=177) Friends or Paid places Free places
relatives' home (N=406) (N=406)
(N=406)
ABC1/C2 C3 D/E Total
Fuente: encuestas WIP-Chile 2010. Unidad de análisis: usuarios
Internet 12-64 años, residentes en Santiago.
13

14. www.wipchile.cl
Percentage of internet users using wireless connections* per year
*Mobile broadband and WiFI
70%
61%
60%
50%
40% 25%
30%
20%
13%
10% 5%
0%
Type of home connection
2004 2006 2008 2010
14

15. www.wipchile.cl
e-mail 64%
Use Facebook 51% The 10 most popular online
Browse the Web 51% activities by internet users,
2010
Visit social media 48%
Use instant messaging 44%
(Percentage of users who do each
Comment on… 35% activity at least once daily)
Read news 35%
Send attachments 32%
Find or check an… 28%
Get information for… 26%
Fuente: Encuestas WIP-Chile. Unidad de análisis:
personas de 12 a 64 años, residentes en Santiago
15

16. www.wipchile.cl
Most frequent activities by internet users according to income level, 2010.
(Percentage of users who do the activity at least once daily).
90%
80%
80%
70%
64% 64%
59%
60% 57%
56%
54% 53%
51% 51% 50%
50% 46% 48% 48%
42% 44% 43%
37% 37%
40% 35% 35% 35% 33%
30% 30% 31%
29%
30%
20%
20%
10%
0%
E-mail Use Facebook Browsing the Visit social Use instant Comment on Read local news
Web media messaging blog/fotolog
Total ABC1-C2 C3 D-E
16

17. www.wipchile.cl
Perceptions about political influence of the internet, 2010.
Percentage of answers “strongly agree/agree"
People should be free to criticise their government 71%
by internet 44%
It's OK to people to express their ideas on the 63%
internet, however extreme 38%
55%
state should increase regulation of the internet
52%
In general, I feel comfortable saying what I think 53%
about politics 45%
In internet it is safe to say whay one thinks about 35%
politics 19%
I am worried companies know what I do in the 35%
internet 38%
I am worried the state knows what I do in the 28%
internet 31%
User Non user
Unit of analysis: persons aged 12 to 64, living in Santiago
17

18. www.wipchile.cl
Most frequent activities by internet users according to age, 2010.
(Percentage of users who do the activity at least once daily).
60%
55%
53% 54% 53%
50%
46% 46%
44% 44%
42% 42%
40% 37%
36% 36%
35% 35% 35%
32%
30%
30% 28% 28%
20% 18%
16%
14%
9%
10%
0%
Use instant messaging Comment on blog/fotolog Read local news Send attachments
Total 12-17 18-24 25-34 35-49 50-64
18

19. www.wipchile.cl
Percentage of internet users and non users who own a mobile phone, 2010
86%
77%
User Non user
Fuente: Encuestas WIP-Chile. Unidad de análisis: personas de 12
a 60 años, estratos ABC1, C2, C3 y D residentes en Santiago
19

20. www.wipchile.cl
Payment systems of mobile phones owned by internet users and non users
according to income, 2010
90%
90% 79%
82% 80%
74%
80%
70% 68%
70%
70%
58%
61% 60%
60%
53% 50%
50% 47% 42%
39% 40%
40% 32%
30% 30% 26%
30%
21%
18%
20%
20%
10%
10%
0% 0%
Prepaid Plan
Prepaid Plan
Total ABC1-C2 C3 D-E
Total ABC1-C2 C3 D-E
USERS NON USERS
Unit of analysis: people aged 12-64, owners of a mobile phone,
residents of Santiago
20

21. www.wipchile.cl
The 10 most frequent activities done in mobile phones by internet users and
non users, 2010.
User Non user
Talk 95%
98%
Send/receive text messages 84%
46%
Contact friends/relatives who see in person 83%
66%
Contact people who doesn't see in person… 68%
55%
For professional or work matters 52%
34%
Photos or videos (capture, send, etc.) 43%
10%
Play 39%
21%
Download music MP3 or ringtones 22%
15%
Send/receive e-mail 21%
5%
Find information in Google and similar seach… 0% 17%
Participate in social media (Facebook, Twitter) 14%
2%
Unit of analysis: people aged 12 to 64, owners of a mobile
phone, living in Santiago
21

22. www.wipchile.cl
Deepening the concept of Digital
Exclusion: a comparison between the
UK and Chile*
By
Sergio Godoy, UC School of Communications
Ellen J. Helsper, London School of Economics
Helsper,
*A project supported by The Conference Board / Fundación Telefónica

23. www.wipchile.cl
Aims
• Why some engage with ICTs while others from
same background do not?
– Need to go beyond the bipolar access/not access
(digital) and want/do not want (decisional) divides-
• Focus on the reasons, attitudes, fears or
pressures behind this decision, which can change
over time.
• Exploring in-depth within a specific & significant
segment of population from Chile & UK:
– Who feels technology is more or less integrated.
– Motivators and obstacles, real or imaginary.
– Perceptions of usefulness and purpose within a complex
network of social ties.
Helsper & Godoy-Chile & UK comparison 23

24. www.wipchile.cl
Chile and the UK
• UK and Chile: relative leaders in digital
inclusion in their region (Northern Europe,
Latin America), surpassed by others.
• Differences between the two could illustrate
a wider range of possibilities.
24
Helsper & Godoy-Chile & UK comparison

25. www.wipchile.cl
25
Helsper & Godoy-Chile & UK comparison

26. www.wipchile.cl
Source:
Source: World Economic Forum Global Information Technology Report 2010
26

27. www.wipchile.cl
UK Chile
UNDP Human Development Index 26th (0.840, 45th (0.634,
ranking & score, 2010 “Very High”) “High”)
UNDP’s inequality-adjusted HDI 0.766 0.630
scores, 2010
UNDP’s Gender Inequality Index 0.355 0.505
score, 2010
Transparency International’s 17th (7.7) 25th (6.7)
Corruption Perception Index Rank and
score, 2009
27

28. www.wipchile.cl
Quantitative comparisons:
comparisons:
Internet users in selected WIP countries, 2009 */ 2010**
countries,
100
80 78 77 77
80 73 70 67
61 59
60 55
51 48 47 45 42
37
40 32
20
0
Macao*
Mexico**
Sweden**
Canada*
Australia*
Israel*
USA**
New Zealand*
Czech Republic**
Chile**
Italy**
Hungary*
Portugal**
Singapore*
Colombia**
Chile (Santiago)**
Britain**
Helsper & Godoy-Chile & UK comparison 28

29. www.wipchile.cl
Model for the relationships between social and digital
inclusion
Norris, 2001; Van Dijk, 2005; Witte & Mannon, 2010; Helsper, 2008; Selwyn, 2004; Warschauer, 2004
Dijk, Mannon, Helsper, Warschauer,
29
Helsper & Godoy-Chile & UK comparison

30. Note: All individuals were middle and lower-middle class adult parentschildren attending school
All individuals were middle and lower-middle class adult parents of of children attending school
www.wipchile.cl
Focus group selection
Fathers intense Mothers intense
users users
Fathers limited Mothers limited
users users
30
Helsper & Godoy-Chile & UK comparison

31. www.wipchile.cl
General engagement and valuations: commonalities
• ‘Digitisation inevitable’ > UK pessimistic - Chile aspirational.
• The internet and mobiles perceived as distinct technologies.
• Mobiles fundamental, extension of the body, an integral part of
everyday life.
• Mothers concerned about children - fathers a wider repertoire
of reasons.
• Children: a powerful driver for ICT access, very proficient but
also poor trainers.
– Concern about the “copy & paste”, lazy mentality of youngsters
31
Helsper & Godoy-Chile & UK comparison

32. www.wipchile.cl
UK specificities
• Engagement not a free and positive choice.
• Concerns:
– Safety & surveillance issues (not in Chile)
– How to save money by engaging with ICT (not at all in Chile)
• Mobile phones: 24 hour safety & support.
... constant access a major concern, puts people off.
• (Social) networks strengthen digital inclusion- wide, informal,
instant support in relation to ICTs.
32
Helsper & Godoy-Chile & UK comparison

33. www.wipchile.cl
UK Results: Some quotes
Male/fathers intense users Female/mothers intense users
“…I’m constantly getting…so and so’s “It’s just like you’ve lost
invited you to join Facebook and I don’t something...
respond to any of them …I get so much It’s a lifeline as well, isn’t it? You’re
email in every day anyway, the last thing dependent on it…. As much as I
you want to do is spend more hate them sometimes.”
time…...buried under a pile of messages.”
Male/fathers limited users Female/mothers limited users
“They laugh at you, kids, don’t they…you
know, and we are supposed to be teaching “But sometimes I think it’s too much.
them […] then they start laughing and It’s just like your information is just with
huffing, and like you’re useless or you’re you all the time, just like, why you need
this and that.., you think like pfff where to know everything like that, you know,
does this thing come from?” the football score, you know, the
weather forecast... What else?”
Helsper & Godoy-Chile & UK comparison 33

34. www.wipchile.cl
Chile specificities
• Workplace and gender roles seem the most
prominent aspects explaining engagement:
– Limited users reported higher rates of free-lance work and
more unstable jobs
– Children are a motivating factor to engage with ICTs
– Female limited users felt backward and sacrificed
themselves (paid jobs, access to the family’s PC) for the
sake of their families
– Some male Chilean infrequent users boasted about not
needing the internet -they could rely on relatives and
colleagues
34
Helsper & Godoy-Chile & UK comparison

35. www.wipchile.cl
Chilean results: some quotes
results:
Male/fathers intense users Female/mothers intense users
”To learn about “Yesterday I left my cell
“Life hasn’t changed for
internet] I look on phone at home and I
them (our children), it has
the internet…for wanted to die. It was like
changed for us instead”
‘Saint Google’, or I being without clothing”
call the internet
provider”
Male/fathers limited users Female/mothers limited users
“It is not that one hasn’t got
“I have no motivation whatsoever
the time for it. It’s rather that
to use the internet. (I use mobile “Those in kids do not leave a space (for
phones) for the most basic things, Facebook are me). I mean, when one has
short and precise. (If at need) I full of shit in some spare time, they’re
would learn how to, just as I did their heads” (logged in) there”
with the cell phone”
35
Helsper & Godoy-Chile & UK comparison

36. www.wipchile.cl
Discussion
• While reasons for disengagement differed between the two
countries, the patterns of social exclusion were very similar
• There is greater potential for inclusion of limited users in Chile
where ICT use is still more aspirational than in the UK
• Home and societal pressures are stronger in the UK, workplace
and societal aspirations are in Chile
• These aspirations may change as the curve of technological
diffusion in Chile approaches Britain’s.
• Motivations and “whys” –how different are they for each group,
country, culture? (cfr. Presentation by G. Blank & B. Reisdorf)
36
Helsper & Godoy-Chile & UK comparison

37. www.wipchile.cl
WIP/BIT 3.0 proposal
• Aim: determine how ICTs affect trust & confidence between
organisations and their stakeholders
• Mixed methodological approach, initially qualitative and finally
quantitative to generalise results:
• Three sector studies: retail, local government, telecoms/pay TV
– Focus groups of stakeholders (frequent internet users vs. infrequent users)
– Usability tests of online and offline interfaces
– Analysis of the competitive/organisational environment (including stakeholder map) &
strategies of the chosen organisations; in-depth interviews of management
• 3rd year: (Enhanced) WIP survey to users / non (?) users:
– Draw typologies by means of regression and cluster analysis
37