PH INTERNET ACCESS ONLY 56%, FAR BELOW WORLD MEDIAN OF 75%

Filipinos are notorious heavy users of Facebook, the world’s biggest social media site. FB’s main office in the US shows global real-time use, and the Philippines constantly ranks in the top with over nine hours a day on FB. Yet, PH only has a 49% rate of social media use, well below the global median of 53%.

While social media use has remained stable in developed countries since 2015, from 61% to 60%, it grew rapidly, by 56%, in emerging economies from 34% in 2013 to the present world average of 53%.

In Asia, South Korea has the highest rate of social media use at 69%, which is the same as the US. Next is China (60%), Vietnam (53%), PH (49%), Indonesia (26%), and the lowest is India (20%).

Greater internet access usually corresponds to greater social media use like in South Korea and Jordan. Yet Japan has a high rate of internet access (76%) but a low rate of social media use (39%). Similarly, Canada, Australia, and rich European countries with the highest internet use (over 88%) only average 64% in social media use.

Internet use is also higher in richer countries like South Korea (96%) and US (89%), as defined by adults who use the internet occasionally or own a smartphone.

“Access to the internet is considered so vital that in 2016 the United Nations passed a nonbinding resolution to make disruption of internet access a violation of human rights.” (Pew Research Center)

More smartphones = more internet use

Since 2013, internet connectivity has continued to rise in developing nations from 40% to 64%. This growth corresponds with increase in smartphone ownership, which greatly rose from 24% to 42%.

In advanced economies, general internet access and smartphone ownership both plateaued since 2015, likely because they were already at high levels.

The global median for smartphone ownership is 59%. The lowest rate in Asia  is in India (22%) and Indonesia (27%).

In South Korea, the maker of Samsung smartphones, everyone has a cellphone: 96% own a smartphone, while the remaining 4% own a mobile phone.

In the Philippines, the increase in internet access is largely from the availability of more affordable smartphones or one with internet access. Filipinos who own a smartphone increased from 22% in 2015 to 44% in 2017. About 30% have a mobile phone without internet access and 26% have no mobile phone.

The Philippines still has low internet accessibility at 56%, when the world median is 75%.

It is much cheaper for Filipinos to own a smartphone and pay for a mobile plan, which can range from $1 a day to $20 a month than to get an internet subscription. A smartphone plan can also be prepaid for a set amount or a daily basis which gives users a lot of flexibility, especially the low income earner.

In contrast, a PH internet subscription has an initial cost of $80 for installation and deposit. You are locked into a two-year plan that has a termination fee, which can be for the unused months or up to thrice the monthly fee. Plans range from $30 to $140 a month.

Filipinos are very price-conscious so the availability of ultra low-end smartphones that cost only $100 from South Korea’s Samsung and China’s Oppo and Vivo hold 59% of the smartphone market. This segment is more than the combined sales of low-end ($101 to $199), mid-range ($200-$400), high-end ($401-$600), and ultra high-end (from $601) smartphones.

Filipinos want to get their money’s worth, so they prefer to buy a smartphone with a bigger screen, good camera, and greater capabilities that allow them to centralize their digital needs for work and personal use, especially for their social media habits. A bigger screen allows users to enjoy beautiful graphics, view their pictures and videos, and easily read text. Plus the portability of smartphones is incomparable.

Another reason for the popularity of large-screen smartphones is the greater availability of video streaming services like Netflix, where you can watch shows, movies, and original programs from your phone.

With the availability of smartphones with bigger screens, tablet sales (size 7 to 11 inches) decreased since Filipinos cannot justify its cost when their phones can do the same thing. They would rather buy a laptop for the same price that allows them to type and work, with its greater power, storage, battery life, and utility. PH Laptop sales overtook desktops since 2015 and overtook tablets in 2017.

Desktop and laptop sales will likely continue to rise as the country becomes more digitally connected, more workers telecommute, workloads become heavier, and PC gaming becomes more popular.

Social media use is popular in many advanced nations, with over two-thirds of adult users in the US, Australia, South Korea, Canada, Israel, and Sweden. They average 68%. But just like smartphone use, social media use in advanced countries has plateaued.

Meanwhile, emerging economies like the Philippines use social media platforms beyond personal pursuits. They go to networking sites and FB to market their wares, promote their business, and increase their professional standing. It’s very common for small business owners and side businesses to sell directly on FB and other social media sites. This is a very attractive option for the cash-strapped proprietor since these sites are free and they already have a personal profile and a network of friends who can support their business. It’s also common for regular users to post their used clothes and luxury items for sale on these sites.

“[A]mong people who use the internet, those in developing countries often turn out to be more likely than their counterparts in advanced economies to network via platforms like Facebook and Twitter. (Pew Research Center)

Young, educated, and connected

Globally, the youth (ages 18 to 36) are the most frequent internet users. In countries with a young population like the Philippines (median age is 24), there is a great age gap between the young and the older users.

“In three countries, there is at least 50-percentage-point gap between younger and older generations: the Philippines (55-percentage-point gap), Tunisia (51 points) and Vietnam (50 points). Among advanced economies, the largest generational divides in internet use are found in Greece (47-point gap), Italy (36 points), Poland (34 points) and Hungary (33 points).” (Pew Research Center)

Generation X (ages 34-53) are also heavy users of the internet and social media sites. They spend over 40 minutes more on the internet than millennials and are heavily reliant on their smartphones and smart devices for their work and recreation. They are now in more advanced stages of their careers so they have the economic means to buy more, whether in terms of higher-priced devices or greater quantities.

Baby Boomers (ages 54-72) may not use the internet or social media as much as the two younger generations after them, but they have the most means. They buy the most expensive smartphones, laptops, and devices; pay for the best internet and phone subscriptions; and most likely pay for their children’s and grandchildren’s smartphones, digital devices, and subscriptions too.

Filipino Boomers use social media to keep in touch with family members regularly, especially those who live far from them or are abroad. They use the internet mostly for information like international news and health research but still prefer to watch TV for local news and shows.

Internet and social media use reflects the global economic reality. The more affluent have greater digital access.

“Despite growing internet use and smartphone ownership, the world remains digitally divided. It is still the case, for example, that people in wealthier countries have higher rates of internet use and smartphone ownership.” (Pew Research Center)

Affluent nations have the means to build better infrastructure to support the internet and mobile technology. Their prosperity allows its citizens to afford internet subscriptions, smartphones, and computers. The opposite is true for developing nations where most basic services and infrastructure are poor.

Education is another reflection of social status. Worldwide, there is a significant gap between those with more education, who have more internet access, over those with less education who have less internet access. In 95% of all countries surveyed, the differences are in the double digits.

Less educated Filipinos use the internet 27% of the time, while the more educated use the internet or own a smartphone 75% of the time. The 48% gap is one of the highest among the nations surveyed.

Less educated Chinese use the internet 55% versus the more educated 92%.  India is 11% versus 53%. In contrast, the less educated American has an internet use of 84%, while the more educated has 96%. Again, South Korea has the smallest gap of 6% since 99% of its population has a college degree, but its less educated still has a high internet use of 93%.

Despite increasing automation and outsourcing, a college degree remains an employer’s basic requirement. An elite education opens many doors for a fresh graduate and greater chances of advancement, especially into managerial and executive levels. Greater responsibilities usually corresponds to a higher salary that allows the worker to afford luxuries like a smartphone and a subscription.

In addition, internet access is the standard in many high schools and all colleges and universities, even in developing countries like the Philippines. So students who pursue a tertiary or post graduate degree also avail of the school’s facilities even if they cannot afford their own subscription, smartphone, or computer.

Internet access and social media use is a reflection of many socioeconomic and cultural factors within a country. In this digital age, internet connectivity and digital savvy is essential for a nation to compete globally.

IVY DIGEST

IVY LOPEZ

Ivy Digest serves the busy reader and extracts relevant data from chosen worthwhile publications to incite ideas and inform decisions. The author Ivy is a lawyer and journalist who studied in the Ateneo de Manila University and the University of Pennsylvania’s Wharton School.

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