Digitization is a buzzword nowadays, so there might be a need to discuss its meaning. Doing so requires a distinction between analog and digital technologies.
Analog technology precedes digital technology. In the former, information is translated into electric pulses of varying amplitude. In the latter, information is translated into binary format (i.e., zero or one), where each bit is representative of two distinct amplitudes. Examples of analog technology are old radios, megaphones, and volume control on old telephone handsets, while examples of digital technology are modern electronic products, such as computers and smartphones.
Digitization, as Techopedia defines, is the process of converting analog signals, or information of any form, into a digital format that can be understood by computer systems or electronic devices. The term is used when converting information, such as text, images, and sounds, into binary code. Digitized information is easier to store, access, and transmit, and digitization is used by a number of consumer electronic devices.
In its report on Philippine media trends for 2020, Kantar Media notes that digitization is accelerating in the country. Digital television, in particular, is quickly becoming the norm among Filipino households. The share of television homes using cathode ray tube TV sets decreased from 58 percent in 2018 to 51 percent in 2019. By contrast, the share of TV homes using plasma TV increased from 46 percent in 2018 to 53 percent in 2019. These trends suggest that there are currently more flatscreen homes than CRT homes.
Moreover, digital television transition continues to grow across all areas. In urban areas, from 2018 to 2019, DTT incidence, which is measured as percent of TV homes, climbed in the following: Mega Manila (from 56 percent to 66 percent), Metro Manila (from 60 percent to 67 percent), Suburbs (from 51 percent to 65 percent), Urban North Luzon (from 7 percent to 13 percent), Urban Central Luzon (from 22 percent to 39 percent), Urban South Luzon (from 8 percent to 16 percent), Urban Visayas (from 7 percent to 14 percent), and Urban Mindanao (from 1 percent to 5 percent). So, for Urban Philippines as a whole, DTT incidence increased from 33 percent in 2018 to 40 percent in 2019. For Rural Philippines, DTT incidence, likewise, increased, albeit at a more modest pace, from 2018 to 2019.
With respect to Internet usage, as reported by Internet World Stats, the number of Internet users in the Philippines increased from about 69.6 million (65.3 percent of total population) in 2018 to about 79.0 million (73.1 percent of total population) in 2019. This implies that the number of Internet users grew much faster than the total population did from 2018 to 2019 (13.5-percent growth in the number of Internet users versus 1.4-percent growth in the total population).
In 2019, across countries, the Philippines was at 11th place, with about 73.1 percent of its population being Internet users. At 10th place was Iran, with about 76.0 percent of its population being Internet users, while Vietnam was at 12th place, with about 70.4 percent of its population being Internet users. Comprising the top 5 were Germany (95.8 percent of population), the United Kingdom (94.9 percent of population), Japan (93.5 percent of population), Italy (92.5 percent of population), and France (92.3 percent of population).
What is remarkable is that the Philippines has exhibited such positive trends despite lagging behind its Southeast Asian neighbors in terms of information and communications technology (ICT) infrastructure. As reported in the Philippine Development Plan 2017-2022, despite increases in service coverage (cellular mobile at 99.4 percent and broadband Internet at 76.4 percent of cities and municipalities), Philippine ICT infrastructure is still inadequate and pales in comparison with competing economies in Asia in terms of quality and affordability. In 2016, broadband download speed in the Philippines was among the slowest at 4.3 megabits per second vis-à-vis the Asean-5 average of 9.6 Mbps, while the cost of fixed broadband as a percentage of gross national income (GNI) was at 7.5 percent, way above the 5.0-percent affordability threshold.
Indeed, digitization has the potential to provide much wider access to knowledge and information. Basic education can more easily reach children in remote areas that are otherwise beyond the access of schools and teachers. Poor households, especially those in rural areas, can gain access to formal financial services through digital means. Government services that are otherwise difficult to access for geographic or logistical reasons can become more available, accessible and prompt.
Digitization is already happening organically. Pursued more deliberately, digitization can become a development driver the country urgently needs.
The author teaches economics at the Ateneo de Manila University. He thanks Mr. Jay Bautista, managing director at Kantar Media, for sharing data and valuable insights.
