Installed Base of PCs and Internet Penetration in Colombia – 2004

Figures for internet and personal computer penetration in Colombia are intensely debated year after year with the annual publication of official figures by the Telecommunications Regulation Commission (CRT). One of the main critics has been the Colombian Chamber of Computer Science and Telecommunications (CCIT), a business organization that gathers together the main private-sector computer and telecommunications stakeholders (www.ccit.org.co). In order to promote greater understanding of our market, the CCIT decided to hire International Data Corporation (IDC), a firm with wide renown as an authority in the field, to calculate the installed base of PCs in Colombia in 2004. In addition, as part of the study, IDC was required to report the methods it used in its calculations so that after its results had been made available to the government, both the CCIT and the government authorities would be able to “talk the same language” regarding this issue in the future.

The results of this study show that Colombia is relatively backward in comparison with other countries in the region such as Venezuela, Argentina, Chile, Mexico, etc – not just in terms of PC penetration, but also in per capita investments in technology.

PER CAPITA INVESTMENT IN IT (U.S. dollars)

Source: IDC Colombia

Low levels of investment in technology by companies indicate technological immaturity, which translates into low relative productivity and an inability to compete effectively in the local market and, to a greater extent, on global markets.

Personal Computers (PCs).

The penetration figures indicate that in late 2004 there were 1,758,081 PCs, including portable units. This number is very low in comparison with regional numbers and amounts to a penetration of 3.9%.

PC PENETRATION

Source: IDC Colombia

Internet

The CRT is required by law to collect data on providers’ customers or subscribers every six months. The results published in the last Internet report, December 2004, indicated that the previous 12-month period had seen a migration of customers from switched connections to dedicated lines. However, the total number of subscribers fell in year-on-year terms. We believe this is a very serious situation, since subscriber numbers should be increasing rapidly to bring Colombia up to more or less the same levels as its neighbors. And Colombia’s relative position in broadband penetration (which could well be a topic for another article) is perhaps better not even mentioned.

INTERNET SUBSCRIBERS

Source: CRT 2004 Internet Report

Using subscriber numbers and applying a series of multipliers, the CRT converts the number of subscribers into the number of internet users. We have criticized that method and have asked the CRT to use a scientific method to set the multipliers it uses. Until that takes place, the CCIT reserves its opinion on the official figures for internet user numbers.

This was the reason why the CCIT asked IDC to prepare an estimate for Colombia in late 2004, using a methodology based on the installed PC base and used by IDC globally to estimate internet penetration throughout the world.

Using such a method, IDC estimated that internet penetration in Colombia in late 2004 totaled 2,848,690 users – more than a million below than the figure reached by the CRT – giving a penetration level of 6.8%.

We believe it is not helpful to deceive ourselves with optimistic results generated by methodologies lacking in rigor. We must be aware of our relative backwardness in this area and recognize the importance of computer science and telecommunications activities in the country’s development. Thus, the government should set policies to promote those two activities so that more and more companies and more and more people invest in technology for the benefit and progress of more and more Colombians.

Carlos Neira Manager
Colombian Chamber of Computer
Science and Telecommunications (CCIT)
E-mail: [email protected]