turkish information society statistics 2011

INFORMATION SOCIETY STATISTICS OF TURKEY IN

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T.R.PRIME MINISTRYSTATE PLANNING ORGANIZATION

INFORMATION SOCIETYSTATISTICS OF TURKEY

June 2011

Undersecretariat for State Planning OrganizationInformation Society Department

SPO Publication No: 2829

2011

2 | INFORMATION SOCIETY STATISTICS 2011

Use of this document as a publication and reference does not require the permission of the State Planning Organization.

500 copies of thispublication has been printed.

ISBN: 978-975-19-5241-7

Undersecretariat for State Planning OrganizationInformation Society Department

June 2011

INFORMATION SOCIETY STATISTICS 2011 | 3

PREFACE

The e-Transformation Turkey Project, being carried out under the coordination of the State Planning Organization (SPO) since 2003, aims to accelerate the process for Turkey’s transformation into an information society. Within this framework, the Information Society Strategy, which contains the objectives, policies, and strategies of Turkey for transformation into an information society, was prepared and the Action Plan, which defines the steps to be taken between 2006 and 2010, was drawn up.

Monitoring of the process of the transformation with the help of proper indicators is just as critically important as the implementations carried out during this process. To this end, 117 indicators were developed with the aim of monitoring the implementation of the Strategy and the extent to which the objectives are achieved and the Measurement Document containing these indicators was published. The data about the indicators were directly compiled by the Turkish Statistical Institute (TURKSTAT) or submitted to TURKSTAT by public agencies. TURKSTAT reported the consolidated data to SPO and SPO in turn evaluated the process for the transformation by comparing this data with the objectives. The Information Society Statistics publication, which has been prepared for the last three years, made it possible to make international comparisons.

The Information Society Statistics publication, which brings together the data that enables the monitoring of the transformation process, has become a fundamental instrument for implementing agencies and decision makers. This publication, which constitutes an important source for users, is a report aiming to show the general situation and the progress made by Turkey in the transformation process. The Information Society Statistics publication of this year is particularly meaningful since the implementation period of the Strategy has been completed.

I hope that this publication will guide decision makers and the relevant parties, and I hereby would like to thank all relevant public agencies and organizations, in particular TURKSTAT, which provided most of the data for this publication, and my colleagues working in the Information Society Department.

Kemal MADENOĞLUUndersecretary


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sPREFACE ........................................................................................................................... 3INTRODUCTION ............................................................................................................. 111. SOCIAL TRANSFORMATION ........................................................................................ 131.1. Computer and Internet Usage ................................................................................ 131.2. ICT Access in Households ........................................................................................ 341.3. Use of ICT in Education ........................................................................................... 382. INFORMATION AND COMMUNICATION TECHNOLOGIES ADOPTION BY BUSINESSES 512.1. ICT Access and Use in Enterprises .......................................................................... 522.2. Automated Information Sharing in Enterprises ......................................................632.3. Information and Communication Technologies Security ........................................663. e-GOVERNMENT ........................................................................................................ 733.1. Public Sector ICT Investments (2002-2011) ............................................................ 743.2. e-Government Gateway ......................................................................................... 763.3. Use of e-Government Services ............................................................................... 793.4. Savings from e-Government Applications .............................................................. 894. INFORMATION TECHNOLOGIES ................................................................................. 995. ELECTRONIC COMMUNICATION .............................................................................. 1176. IMPROVEMENT of R&D and INNOVATION ............................................................... 1316.1. Research and Development .................................................................................. 1326.2. Innovation ............................................................................................................. 136ANNEXES ...................................................................................................................... 143ANNEX - 1 Table of Key Indicators ............................................................................... 143ANNEX - 2 Table of Indicators ...................................................................................... 146ANNEX - 3 Indicators, which could not be Measured and the Reasons for failing to make the measurement .......................................................................... 155ANNEX - 4 International Ranking ................................................................................. 157ANNEX - 5 Use of Information Technologies in Enterprises before 2010 NACE Rev. 1.1 Statistical Classification of the Sectors Covered ..............................161ANNEX - 6 NACE Rev. 1.1 List concerning the ICT Sector Definition ..............................163ANNEX - 7 NACE Rev. 2 Statistical Classification of the Sectors Covered in the Survey on the Use of Information Technologies in Enterprises 2010 .................................169ANNEX - 8 NACE Rev. 2 List concerning the ICT Sector Definition ................................172ANNEX - 9 HS (Harmonized System) 2002 ICT Products List ........................................179ANNEX - 10 Government ICT Investments by Sector, 2002-2011 .................................188ANNEX - 11 Digitizing Public Services in Europe Putting Ambition in Action The EU 9th e-Government Benchmark Measurement-Turkey Report ...............................191


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Table 1.1: Activities Carried out with the Use of Computers, 2010 ................................26Table 1.2: Activities Carried out on the Internet, 2010 ..................................................27Table 1.3 Goods and Services Ordered or Purchased over the Internet, 2010 .............. 29Table 1.4 Problems Experienced during Shopping over the Internet, 2010 .................. 30Table 1.5: Internet Access of Households by Type of Connection, ................................ 37Table 1.6: Number of Students per Computer, 2010 ..................................................... 39Table 1.7: Number of Teachers per Computer, 2010 ......................................................41Table 1.8: Number of IT Laboratories, 2010 .................................................................. 43Table 1.9: Progress in Key Indicators concerning Social Transformation .......................45Table 2.1: Progress in Key Indicators concerning ICT Adoption by Businesses .............70Table 3.1: Progress in Key Indicators concerning e-Government ..................................91Table 3.2: 20 Basic Public Services in the EU and their Provision in Turkey .................. 97Table 4.1: Market Indicators for the ICT Sector ........................................................... 100Table 4.2: Number of Companies Established and Closed in the Field of ICT, 2010 .... 101Table 4.3: Number of Enterprises Operating in the Field of ICT ..................................102Table 4.4: Hardware Manufacturing and Added Value of the ICT Sector .................... 102Table 4.5: Hardware Foreign Trade Figures of the ICT Sector ......................................104Table 4.6: Employment in the ICT Sector ..................................................................... 106Table 4.7: Narrow and Broad Definitions of ICT Employment according to ISCO-88 ... 107Table 4.8: Progress in Key Indicators concerning Information Technologies ...............111Table 5.1: Number of Broadband Subscribers with respect to Access Technologies... 120Table 5.2: Progress in Key Indicators concerning Electronic Communication ..............124Table E11.1: Turkey in Figures ..................................................................................... 192Table E11.2: Online Sophistication Scores of 20 Basic Public e-Services in Turkey ...........................................................................................194Table E11.3: Key Services for a Business Start Up Process ..........................................198Table E11.4: Key Services for a Citizen Life Event: ‘loosing and finding a job’ .............199


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Figure 1.1: Computer Usage within the Last 3 Months ........................................................ 14Figure 1.2: Last Time of Internet Usage ................................................................................ 15Figure 1.3: Computer Usage Frequency, 2010 ...................................................................... 16Figure 1.4: Internet Usage Frequency, 2010 ......................................................................... 16Figure 1.5: Regular Internet Usage ....................................................................................... 17Figure 1.6: Computer Usage within the Last 3 Months, Urban-Rural ................................... 18Figure 1.7: Internet Usage within the Last 3 Months, Urban-Rural ...................................... 18Figure 1.8: Internet Usage by Age Groups, 2010 .................................................................. 19Figure 1.9: Population Distribution by Age Group ................................................................ 20Figure 1.10: Internet Usage by Educational Background, 2010 ............................................. 21Figure 1.11: Internet Usage by Employment Status, 2010 ................................................... 21Figure 1.12: Employment status of the working population (15 years or older), 2010 ........ 22Figure 1.13: Unemployed population (15 years or older), 2010 ........................................... 22Figure 1.14: Enrollment on Courses related to Computers, 2010 ........................................ 23Figure 1.15: Location of Access to a Computer .................................................................... 24Figure 1.16: Internet Use by Location of Access ................................................................... 24Figure 1.17: Internet Use by Location of Access, 2010 .......................................................... 25Figure 1.18: Reasons for not Preferring to Shop Online ....................................................... 31Figure 1.19: Security Problems Experienced by Internet Users............................................. 32Figure 1.20: Security Problems Experienced by Internet Users, 2010 ................................... 33Figure 1.21: Use of Information Security Products, 2010 ..................................................... 34Figure 1.22: Households with Internet Access ..................................................................... 35Figure 1.23: Internet Access of Households by Type of Connection .................................... 36Figure 1.24: ICT Equipment and Internet Connection Status in Households, 2010 .............. 38Figure 1.25: Number of Students per Computer in Primary Schools, 2010 ......................... 40Figure 1.26: Number of Students per Computer in Secondary Schools, 2010 ..................... 40Figure 1.27: Number of Teachers per Computer in Primary Schools, 2010 .......................... 42Figure 1.28: Number of Teachers per Computer in Secondary Schools, 2010 ..................... 42Figure 1.29: Ratios of Internet Usage within the Last 3 Months in the EU and in Turkey .... 46Figure 1.30: Ratios of Regular Internet Usage in the EU and in Turkey ................................ 47Figure 1.31: Households with Internet Access in the EU and Turkey ................................... 48Figure 1.32: Households with Broadband Internet Access in the EU and in Turkey ............. 49Figure 2.1: Ratio of Enterprises where Computers are Used ................................................ 53Figure 2.2: Ratio of Enterprises with Internet Access ............................................................ 54Figure 2.3: Web Page Ownership Ratio of Enterprises with Internet Access ........................ 55Figure 2.4: Ratio of Employees Using Computers at least once a Week in Enterprises ........ 56Figure 2.5: Ratio of Employees Using the Internet at least once a Week in Enterprises ...... 56Figure 2.6: Internet Usage Purposes in Enterprises .............................................................. 57Figure 2.7: Types of Fixed Internet Connection in Enterprises ............................................. 58Figure 2.8: Types of Mobile Internet Connection in Enterprises, 2010 ................................ 58Figure 2.9: Network Technologies Used in Enterprises ........................................................ 59Figure 2.10: Services Provided by Enterprises over the Internet .......................................... 60Figure 2.11: Volume of E-Commerce Transactions Completed with Virtual POS ................. 60Figure 2.12: Reasons why Enterprises Use Automated Data Exchange ................................. 61


Figure 2.13: Ratio of Electronic Signature Usage in Enterprises, 2010 ................................. 62Figure 2.14: Ratio of Enterprises Sharing Order Information Internally, 2010 ..................... 63Figure 2.15: Ratios of Receiving / Placing Orders over Computer Networks by Enterprises, 2009 ....................................................................................................... 64Figure 2.16: Ratio of ERP, SCM, and CRM Usage in Enterprises ............................................ 65Figure 2.17: Ratio of Enterprises with ICT Security Policy, 2010 ........................................... 66Figure 2.18: Risks in Enterprises with ICT Security Policy, 2010 ........................................... 67Figure 2.19: Methods of Informing Employees with respect to ICT Security in Enterprises, 2010 ...................................................................................................... 68Figure 2.20: Incidents related to ICT Security that affect the Systems of Enterprises, 2009 69Figure 2.21: Internal Security Means or Methods Used by Enterprises, 2010 ..................... 69Figure 2.22: Ratio of Enterprises with Internet Access in Turkey and in the EU ................... 71Figure 2.23: Ratio of Enterprises with Broadband Internet Access in Turkey and in the EU 72Figure 3.1: Public ICT Investment Allowance (2002-2011) ................................................... 74Figure 3.2: Sectoral Distribution of Public ICT Investments, 2011 ........................................ 75Figure 3.3: Number of Services Provided from the e-Government Gateway ....................... 76Figure 3.4: Distribution of Services Provided from the e-Government Gateway by Public Agencies, 2010 ............................................................................................... 77Figure 3.5: Number of e-Government Gateway Visitors ...................................................... 78Figure 3.6: Number of Public Sector Websites ..................................................................... 78Figure 3.7: Ratios of Internet Usage in Communicating with the Public Sector by Household Members and Enterprises ...................................................................... 80Figure 3.8: Distribution of Enterprises that use the Internet in Communicating with the Public Sector, 2009 ..................................................................................... 81Figure 3.9: Activities carried out by Individuals who use the Internet in Communicating with the Public Sector ..................................................................... 82Figure 3.10: Activities carried out by Enterprises that use the Internet in Communicating with the Public Sector .................................................................... 83Figure 3.11: Reasons why People Choose not to Use e-Government Services .................... 84Figure 3.12: Reasons why Enterprises Choose not to Use e-Government Services ............. 85Figure 3.13: Number of Qualified Electronic Certificates Produced for Public Agencies ...... 88Figure 3.14: Applications to Increase Participation in Local Administrations, 2011 ............. 90Figure 3.15: Online Availability of 20 Basic e-Services in EU-27+ Countries, 2010 ............... 93Figure 3.16: Online Sophistication Scores of 20 Basic e-Services in EU-27+ Countries, 2010 ............................................................................................ 94Figure 4.1: Number of Enterprises Performing Exports from those Operating in the ICT Sector ................................................................................................................ 105 Figure 4.2: Ratio of Enterprises Performing R&D Activities from those Operating in the ICT Sector ..................................................................................... 106Figure 4.3: ICT Related Employment within Total Employment ......................................... 108

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Figure 4.4: Market Size of the ICT Sector (Largest six markets) ........................................... 112Figure 4.5: Market Size of the ICT Sector (Selected countries) ........................................... 113Figure 4.6: Market Size of the ICT Sector by Segments, 2009 ............................................ 114Figure 4.7: ICT Related Employment (OECD broad definition) within Total Employment .. 115Figure 4.8: ICT Specialists’ (OECD narrow definition) Employment within Total Employment ................................................................................................... 115Figure 5.1: Number of Subscribers in Telecommunication Services ................................... 118Figure 5.2: Fixed Line, Mobile Phone, and Broadband Subscriber Penetration ................. 119Figure 5.3: Sub-Market Sizes in the Telecommunications Sector ....................................... 120Figure 5.4: Infrastructure Investments in the Telecommunications Sector ........................ 121Figure 5.5: Telecommunication Tariff Baskets (Annual) - Household Use .......................... 122Figure 5.6: Level of Competition in Broadband Access - Market Shares by Number of Subscribers ........................................................................................... 123Figure 5.7: Broadband Subscriber Penetration in EU-27 and in Turkey, 2009 .................... 126Figure 5.8: The Population Covered by the DSL Infrastructure in EU-27 and Turkey, 2009 127Figure 5.9: Broadband Connection Type and Subscriber Penetration in OECD Countries, June 2010 .................................................................................... 128Figure 5.10: Average Broadband Data Download Speed in OECD Countries, September 2010 ..................................................................................................... 129Figure 5.11: Average Cost of Broadband Access per Mbps in OECD Countries, September 2010 ..................................................................................................... 130Figure 6.1: Share of R&D Expenditures within the GDP ..................................................... 133Figure 6.2: Shares of Higher Education, Private Sector, and Public Sector in R&D Expenditures ........................................................................................................... 134Figure 6.3: Share of ICT R&D Expenditures within R&D Expenditures of the Private Sector .......................................................................................................... 134Figure 6.4: Sources of Financing for R&D Expenditures ..................................................... 135Figure 6.5: Technological Innovation in the Service Sector according to Lines of Activity . 136Figure 6.6: Technological Innovation Activities in the Service Sector by Group Size .......... 137Figure 6.7: Youth Education Level ....................................................................................... 138Figure 6.8: People with Undergraduate Degree in 25 - 64 Age Group ............................... 138Figure 6.9: People with Undergraduate Degree in Science and Engineering ..................... 139Figure 6.10: Number of Patents per Million People ........................................................... 140Figure 6.11: Share of R&D Expenditures in GDP, Turkey – EU-27 Comparison .................. 141Figure 6.12: Youth Education Level, Turkey – EU-27 Comparison ...................................... 142Figure E11.1: Full Online Availability .................................................................................. 193Figure E11.2: Online Sophistication .................................................................................... 194Figure E11.3: User Experience of Services .......................................................................... 196Figure E11.4: User Experience of Portals ............................................................................ 196Figure E11.5: e-Procurement Pre-award Process Benchmark by Sub-phase ...................... 197

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Box 1.1: Household Use of Information Technologies Survey .......................................14Box 1.2: Demographic Structure of Turkey .................................................................... 20Box 1.3: Participation in Employment and Labor .......................................................... 22Box 1.4: Use of Social Media ......................................................................................... 28Box 1.5: Infrastructure Investments for ICT Education Purposes ..................................39Box 1.6: Empowerment of Youth for e-Transformation of Turkey Project .....................44Box 2.1: Use of Information Technologies in Enterprises ..............................................52Box 2.2: Numbers and Distribution of Enterprises in Turkey .........................................52Box 3.1: Financial Figures for Turkish Public Administration .........................................73Box 3.2: Public Sector Websites ..................................................................................... 78Box 3.3: Automatic Public Services with e-Government ...............................................79Box 3.4: Satisfaction from e-Government Services - Second Hand Vehicle Registration Example .........................................................................................87Box 3.5: Use of Electronic Signature in the Public Sector ..............................................88Box 3.6: e-Government in Local Administrations .......................................................... 90Box 4.1: Annual Industry and Service Statistics ...........................................................101Box 4.2: Indicators Presented for the First Time in the Information Technologies Section ........................................................................................103Box 4.3: Narrow and Broad Definitions of ICT Employment ........................................107Box 4.4: Project for Training Qualified ICT Employees .................................................109Box 5.1: Turkish Telecommunications Sector .............................................................. 117Box 6.1: R&D Centers within the scope of the R&D Law No 5746 ...............................132Box 6.2: Research Infrastructures ................................................................................ 135Box 6.3: Technology Development Zones .................................................................... 140


INTRODUCTION

The process of transformation into an information society is a long process, which will affect Turkey in administrative, technological, economic, and social terms and which should be carefully planned and closely monitored. This process brings about fundamental changes in the public sector, society, and business world. Successful e-Transformation will be possible only with monitoring and evaluation of the process under proper criteria and taking necessary measures when needed.

The Information Society Strategy and Action Plan, which covers the period from 2006 to 2010, determines the priorities of Turkey in the process of the transformation and defines the steps that should be taken. The Information Society Strategy Measurement Document has been prepared defining 117 indicators with the aim of enabling decision makers and implementing agencies to evaluate the developments made by implementation of this Strategy and Action Plan.

The Information Society Statistics 2011 publication at your hand has been prepared as a result of the evaluation and presentation of the data compiled on the basis of the indicators contained in the Measurement Document. In the third version of this document, the indicators list included in Annex-2 has been taken as basis according to the Measurement Document (Version 1.1) as in previous years.

The Information Society Statistics publication is prepared by taking the seven strategic priority areas as basis. However, in this year’s publication, unlike last year, two strategic priority areas concerning e-government were combined and given under a single heading. The six headings of the 2011 publication are:

1. Social Transformation

2. ICT Adoption by Businesses

3. e-Government (Citizen-Focused Service Transformation and Modernization in Public Administration)

4. Information Technologies (Globally Competitive Information Technologies Sector)


5. Electronic Communication (Competitive, Prevalent, and Affordable Communication Infrastructure and Services)

6. Improvement of R&D and Innovation

Under each heading, the key indicators developed to monitor and evaluate the implementation performance of the Information Society Strategy and international comparisons were introduced along with a general evaluation. In addition, for ease of reference, basic indicators have also been presented in a list under ANNEX-1. Furthermore, some of the indicators were not measured even though they are included in the Measurement Document. The reasons for not measuring these indicators are presented in ANNEX-3.

On the other hand, two international rankings, which assess e-readiness of many developing and developed countries, are introduced in ANNEX-4. Within this context; the World Economic Forum (WEF) e-Readiness Index and the United Nations e-Government Survey rankings are presented with up to date data, the criteria for the rankings, and evaluations made by Turkey.

Taking into consideration the structure explained above and the matters given below concerning the data would be beneficial while reading the publication:

• Even though the Information Society Strategy and Action Plan were started to be implemented in 2006, the values of the indicators belonging to the years prior to 2006 have also been used if they existed.

• Since some values used in previous publications were altered at the sources they are obtained from or since the data have been started to be obtained from another source by the responsible agency for such data, some changes can also be seen in the values used in previous years.

• Some changes have occurred within the course of the process in certain survey studies from which the data are obtained. Therefore, some of the 117 indicators are not included in this publication even though they were measured in previous years.

• Certain data concerning the subject was compiled and introduced for information purposes even though it has not been defined as indicator.

• There are various differences arising from the definition of the market and therefore from the measurement of the market size, particularly in the information technologies sector.


1 SOCIALTRANSFORMATION

Taking the opportunities offered by information and communication technologies (ICT) to all segments of the society and enabling the citizens to benefit from ICT efficiently in their daily and business lives has an important place within the objective of transformation into an information society.

The results of the Household Use of Information Technologies Survey conducted by the Turkish Statistics Institute (TURKSTAT) make it possible to examine the Access of citizens to subject technologies, the extent to which they possess the necessary competencies, their use of technology, and the problems related to the subject.

1.1 Computer and Internet Usage

Computer and Internet usage is rapidly growing in Turkey. The ratio of Internet usage within the last 3 months, which was 13.3% in 2004, has reached 37.6% as of 2010 (Figure 1.1). On the other hand, the ratio of Internet users at any time in general was 41.6% in 2010, regardless of the last time of Internet usage.


Figure 1.1: Computer Usage within the Last 3 Months

Source: TURKSTAT Household Use of Information Technologies Survey

Box 1.1 Household Use of Information Technologies SurveyThe Household Use of Information Technologies Survey, carried out in order to determine

the ICT access in households and the tendencies of citizens pertaining to these technologies, is prepared and conducted in compliance with the European Union (EU) norms with the contributions of the Statistical Office of the European Commission (EUROSTAT). A major part of the questions directed to the citizens in the survey are the same every year but some years there were some questions, which were removed or specifically added.

The period between April and June was taken as reference in the survey study for the years 2004, 2005, 2007, and 2010 and the period between January and March was taken as reference in 2008 and 2009. The survey, which was taken up as a separate module added to the Household Labor Survey in 2004 and 2005, was applied to 9,571 households in 2004 and 10,151 households in 2005. The survey was applied as an independent survey in the years 2007, 2008, 2009, and 2010 additionally to 6,516, 6,890, 5,770, and 6,074 households, respectively. However, the results of the studies are comparable with each other. The values belonging to the years 2007 and 2008 were revised by TURKSTAT according to the data of Central Census Management System (MERNIS) and the Address Registration System (AKS), which was completed and became available to public institutions in 2007. The studies in 2009 and 2010 were carried out by directly taking MERNIS and AKS as basis.

The questions included within the scope of the survey are directed to individuals in the 16 - 74 age group. The answers provided by this group, which is deemed to consist of adults and those, who use the subject technologies more consciously, constitute the basis for the results of the survey. Therefore, it should be noted that the results specified to cover the entire country or all individuals in the evaluations made based on indicators in this report, refers to 16 - 74 age group.

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IONAs it can be seen from the figure, the ratio of individuals, who use the Internet

actively (within the last 3 months) has increased and this is the highest ratio within all individuals using the Internet (Figure 1.2).

60.8% of the individuals, who used computers within the last 3 months and 59.3% of the individuals, who used the Internet within the last 3 months, stated that they used computers/the Internet every day/almost every day (Figure 1.3, Figure 1.4).

The results show that those who stated that they used computers and the Internet are mostly active users and they use computers/the Internet regularly. In these circumstances, it is clearly evident that there are significant differences between the individuals, who use and who do not use ICT in terms of access to information and other opportunities offered by ICT.

Figure 1.2: Last Time of Internet Usage


Within the last three monthsBetween three months - one yearMore than one yearNever used

82.5

13.9

2.11.5

69.9

26.9

1.51.7

64.1

32.2

1.52.2

61.9

34.0

1.72.4

58.4

37.6

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Figure 1.3: Computer Usage Frequency, 2010

Figure 1.4: Internet Usage Frequency, 2010

Source: TURKSTAT Household Use of Information Technologies Survey, 2010


28.3 60.8

8.8

2.1

Everyday / Almost everydayAt least once a weekAt least once a monthOnce every two or three months

Percentage

Everyday / Almost everydayAt least once a weekAt least once a monthOnce every two or three months

Percentage

29.2 59.3

9.5

2.0


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IONThe indicator representing regular (every day or at least once a week) use of the

Internet, which is a benchmark determined by the EU, aims to measure the active and continuous use of the Internet. It can be seen that the Internet usage rates for Turkey were 26.9%, 32.2%, 34%, 37,6% in the years 2007, 2008, 2009, and 2010 respectively, and the regular Internet usage rates corresponding to these were 23.2%, 28.5%, 30%, and 33,3% (Figure 1.5). This shows that a major part of the Internet users in Turkey use the Internet actively and on a continuous basis.

Access to and use of ICT by individuals differs depending on their socioeconomic characteristics and the places they live in. This inequality arising in different segments of the society is known as digital divide.

Computer and Internet usage in the society also varies in terms of living in urban or rural areas, the age group, gender, education, and employment status indicates the existence of a digital divide that should be emphasized with importance. As it can be seen from the figure, computer and Internet usage in rural areas lags significantly behind the urban areas (Figure 1.6, Figure 1.7).

Figure 1.5: Regular Internet Usage


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Among all individuals

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Among Internet users

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Figure 1.6: Computer Usage within the Last 3 Months, Urban-Rural


Figure 1.7: Internet Usage within the Last 3 Months, Urban-Rural


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Turkey Urban Rural

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Turkey Urban Rural

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IONWhen the individuals using the Internet within the last 3 months are taken into

consideration, the Internet usage rate is the highest in the 16 – 24 age group according to the results of the survey applied to the 16 – 74 age group. The percentage of women using the Internet lags behind the percentage of men in all age groups (Figure 1.8).

Figure 1.8: Internet Usage by Age Groups, 2010


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Turkey Man Woman

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The level of education and Internet usage are highly correlated. Internet usage of individuals increases in parallel with their education levels. Internet usage by women with college degree, and higher is quite close to the usage levels of men with the same educational background and the difference between men and women increases as the level of education goes down (Figure 1.10). Looking at the internet usage by employment status, it is clear that those using the Internet most are students, employees, waged/salaried employees, and the unemployed, respectively (Figure 1.11).

Box 1.2: Demographic Structure of Turkey• Population of Turkey is 73,722,988 as of 31 December 2010.

• Men constitute 50.2% of the population, while women constitute 49.8%.

• The median age of Turkey, which has a young population structure, is 29.2.

• The total fertility rate in 2009 was 2.06.

• Areas that fall outside the places of settlement with a population of 20.000 and more are defined as “rural areas”. 71% of the population lives in urban areas and 29% lives in rural areas.

Figure 1.9: Population Distribution by Age Group

Source: Turkish Statistics Yearbook, 2010

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Figure 1.11: Internet Usage by Employment Status, 2010



Percentage

College and higher

High school and equivalent

Elementary School

Not graduated from any school

TurkeyManWoman

Primary / Secondary education and equivalent

.

..

..

.

..

.

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Waged and salaried

Employer

Self-employed

Unpaid family worker

Unemployed

Housewife

Retired

Student

Percentage

Do not want to work

Disabled

Other

.

.

.

.

.

.

.

.

.

.

.


Box 1.3: Participation in Employment and Labor

Those covered in the labor force are waged / salaried, and daily waged workers, employers, self-employed, unpaid family workers, and unemployed. The number of employed persons (waged / salaried, and daily waged workers, employers, self-employed, unpaid family workers) was 22,595,000 and the number of those unemployed was 3,046,000 in 2010. The unemployment ratio as of the end of 2010 was 11.9% in Turkey.

Figure 1.12: Employment Status of the Working Population (15 years or older), 2010

Figure 1.13: Unemployed Population (15 years or older), 2010

Source: All of the data were compiled from the 2010 TURKSTAT Statistics Yearbook.

Unpaid family worker

Self-employed

Employer

Waged and salaried

, , , , , , , ,Thousand

,

,

,

,

Not looking for a job but ready to work

Seasonal worker

Housewife

Student

Retired

Disabled, aged or sick

Other

, , , , , , ,Thousand

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,

,

,


1.SO

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IONWith regard to how computer and Internet users acquire the competency to

use computers and the Internet, it is observed that courses do not constitute an instrument frequently used to acquire this competency and that individuals acquire their competencies with the assistance they receive from their schools and circles of friends or by their own efforts (Figure 1.14).

When this matter is examined by years, it is seen that individuals used computers and the Internet more frequently in their workplace in 2004 and 2005, however, they used both of these technologies more frequently at their homes in 2007 and subsequent years (Figure 1.15, Figure 1.16). Likewise, the demand for Internet cafes has also dropped by years. In general, the preferences of individuals regarding places to use computers and the Internet are the same.

Figure 1.14: Enrollment on Courses related to Computers, 2010


Within the last three monthsBetween three months and one yearBetween one year and three yearsMore than three yearsNever attended a course

Percentage

69.7

12.5

4.3

2.0

11.4


Figure 1.15: Location of Access to a Computer



Figure 1.16: Internet Use by Location of Access

Percentage

Home

Work

School

Internet cafe

Friends, relatives, etc.

Other Locations

. . . ..

.....

.. ...

....... .. .

...

..

Percentage

Home

Work

School

Internet cafe


Other locations . ....

...

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..

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Figure 1.17: Internet Use by Location of Access, 2010


When the places for individuals to use the Internet were examined for the difference between men and women, places that were most frequently preferred in 2010 were homes, workplaces, and internet cafes, respectively (Figure 1.17). Homes, houses of other people such as friends, relatives, etc. and schools were more frequently preferred by women compared to men. Places where wireless connection is possible were also listed in the 2010 survey for the first time and men were observed to have used the Internet in these places at a ratio of 1.8% compared to 0.8% for women.

Percentage

ManWoman

Other Locations

Locations with wireless connection


Internet cafe

School

Work

Home ..

..

..

.

.

..

.

.

.

.


The purposes for which individuals use the subject technologies are important in terms of understanding the contributions of ICT usage to economic and social lives of individuals. The activities performed by individuals with the use of computers are shown in Table 1.1 and their purposes to use the Internet are given in Table 1.2.

Copying and transferring files / folders and copying and transferring information contained in a document come first among the activities carried out with the use of computers. A significant difference that arises between urban and rural areas is that such activities as writing a computer program by using a computer language and finding and solving a problem related to computers are realized more than other activities in urban than in rural areas.

Table 1.1: Activities Carried out with the Use of Computers, 2010

(Percentage)

Activities Turkey Urban Rural Areas

Copying or transferring files / folders 82.4 82.5 81.8

Copying or transferring information contained in a document by using the copy – paste commands 67.8 68.5 64.5

Using basic arithmetical formulas in tables 38.6 39.9 32.4

Connecting and installing a new device to the computer (printer, modem, etc.) 37.6 39.5 28.9

Finding and solving a problem related to the computer 22.6 24.0 16.4

Writing a computer program by using a computer language 6.5 7.0 4.4


Activities carried out online in Turkey do not vary much by years. In 2010 the most popular online activities were posting messages to chat rooms, news groups, or online discussion forums. The next most popular services were reading online news, newspapers, or magazines over the Internet and searching information about goods and services. Surfing on the Internet for learning purposes accounts for 37.1%, while Internet banking corresponds to 16.8%, receiving education on a certain subject represents 6.3%, and selling goods or services accounts for 4.1%. When the activities carried out online by region are examined, it can be seen that the users in rural areas lag behind those in urban areas particularly with regard to the use of services related


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Internet for receiving education. On the other hand, activities such as playing games or downloading music, videos, or images and reading online news, newspapers, or magazines are carried out at the same ratio in rural areas as in urban areas.

Table 1.2: Activities Carried Out on the Internet, 2010

(Percentage)

Activities Turkey Urban Rural Areas

Sending / receiving e-mails 72.8 73.9 66.9

Posting comments to chat rooms, news groups, or participating in an online discussion, sending instant messages (Chat, MSN, Skype) 64.2 65.0 60.4

Getting news online 58.8 58.8 58.9Looking for information about goods and services (does not cover purchasing) 55.7 57.7 45.6

Playing games or downloading, music, movies, or images 51.2 51.1 51.5

Looking for information about health (injuries, illnesses, nutrition, etc.) 47.3 48.6 40.8

Making phone conversations (VoIP) / communicating using a webcam 47.1 48.3 41.0

Listening to radio or watching television over the Internet 41.1 42.1 36.1

Surfing on the Internet for learning purposes 37.1 38.1 32.1

Sharing contents that you created yourself such as texts, images, photographs, videos, music, etc. 30.3 31.3 25.1

Looking for information related to activities concerning schools, universities, vocational courses 26.4 27.0 23.5

Using services related to travel and accommodation (hotel reservations, ticket sales, etc.) 22.6 24.9 11.1

Internet banking 16.8 17.8 11.3

Downloading software (excluding game software) 14.8 15.6 10.5

Looking for jobs or making job applications 10.2 10.5 8.9

Receiving online education on a certain subject (foreign languages, computers, etc.) 6.3 6.7 4.5

Selling goods or services (not related to business, selling through auctions, etc.) 4.1 4.3 3.1



Box 1.4: Use of Social Media

According to a recent study conducted in the US, 8 out of 10 individuals using the Internet in the world visit social networking sites. The social media, where a major part of the contents are produced and shared by the end users, have started to be used by the majority of the society in Turkey as well within a short time. Turkey ranks as the 4th country after the USA, Indonesia, and the United Kingdom in terms of number of users with an estimated number of 28 million user accounts in Facebook, the social networking site, which has over 500 million users throughout the world.

According to a research conducted in 2010, the time spent on Facebook by an average user in Turkey is approximately 29.7 hours a week. As of May 2011, the most frequently visited website in 14 countries, almost all of which are ‘developing’, including Turkey, was Facebook.

Various impacts of social media are being increasingly felt everyday in social life. Even though people generally spend time in social networking sites for entertainment purposes, the intense demand for these sites present major opportunities for the public sector, enterprises, and individuals in terms of creating economic and social benefits. Studies conducted in recent years indicate that specialized assessments made over the social media concerning a certain product or service are much more effective on consumers compared to direct marketing methods of companies.

Social media is among the important factors that accelerate social and political transformations by facilitating the organization of and the communication among people. This transformation in the forms of receiving information requires us to consider all channels where “multilateral” and “concurrent” sharing is possible such as blogs, interactive dictionaries, and social information sites together with such sites as Facebook, Twitter, YouTube, which have now become global trademarks, under the concept of “social media”.

While these applications increase the freedom of individuals to receive information by causing changes in traditional media channels, they also expose the society to disinformation. Considerations do exist that social media applications might in time cause socialization problems, particularly in children, and result in an increase in security problems arising from unconscious use.Source: socialbakers.com, comScore.com, alexa.com, Edelman PR


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those shopping online among the individuals participating in the survey in 2010 was only 6.3%. The goods / services mostly ordered or purchased over the Internet within the last 12 months were clothes, sports equipments and electronic devices. Rural users often lag behind urban users in purchases over the Internet. Purchases of telecommunication services over the Internet are insignificant in rural areas. On the other hand, in rural areas purchases of household goods are slightly over that of urban areas in 2010 (Table 1.3).

Table 1.3: Goods and Services Ordered or Purchased over the Internet, 2010

(Percentage)

Types of goods and services

Percentage within those ordering or purchasing

goods or services over the Internet

Turkey Urban Rural

Clothes, sports equipment 24.3 25.2 18.2

Electronic instruments (mobile phones, video cameras, radios, TVs, DVD players, videos, etc.) 23.8 24.1 21.7

Books / magazines / newspapers (including e-books) 20.3 20.8 17.7

Household goods (Furniture, toys, white appliances) 19.3 18.4 25.4

Other activities related to travels (tickets, car rental, etc.) 15.2 16.2 9.1

Food and every day necessities (including flowers, cosmetics, tobacco, and drinks) 13.3 13.9 9.3

Computers and other accessory equipment 10.7 10.5 12.1

Medicine 8.6 8.8 7.4

Videos, music 7.9 8.3 4.8

Purchasing tickets for sports events and cultural activities (cinema, theater, concert, game, etc.) 7.8 8.6 2.3

Accommodation (hotel etc. reservation) 5.1 5.4 3.3

e-Learning materials 3.1 3.2 2.3

Telecommunication services (TV, broadband subscription services (ADSL, etc.), fixed line/mobile phone subscriptions, making payments for prepaid phone cards) 2.5 2.9 0.0

Game software and new version upgrades 2.4 2.2 3.5

Other computer software and new version upgrades 2.2 2.2 2.0

Equity share / Financial service / Insurance purchases 1.6 1.6 1.3



According to the surveys, the ratio of those experiencing problems in shopping over the Internet was 6.3% in 2007, 9.5% in 2008, and 5.7% in 2009. Based on the survey conducted in 2009, the problem most frequently experienced in shopping over the Internet within the last 12 months was the “delivery period being longer than specified” (Table 1.4). Another problem most frequently expressed was experiencing technical problems on the web page during the ordering process or at the stage of payment

Table 1.4: Problems Experienced during Shopping over the Internet, 2010

(Percentage)

Problems Experienced in Shopping Online

Delivery period being longer than specified 40.2Experiencing technical problems on the web page during the ordering process or at the stage of payment 20.4

Wrong or damaged product delivery 16.4

Experiencing deception, fraud, and counterfeiting (misuse of credit card information, inability to receive goods and services) 11.2

Difficulty in finding information regarding the guarantee period and other legal rights 7.6

Difficulty in complaining or compensation or insufficient response following complaints 2.6

Final costs turning out to be higher than initially specified (high delivery costs, credit card transaction costs, etc.) 1.6


“No need” to shop over the Internet comes forth with quite a high percentage among the reasons for individuals not preferring to shop online, and this reason has not been declining over time (Figure 1.18). On the other hand, it is seen that the percentage of “not having a credit card or virtual card, which enables making payments over the Internet” has decreased in a way to pave the way for these types of purchases. Similarly, the “low speed of internet connection” is a problem that has been expressed at ratios close to zero over the past three years. “Preferring to shop in person” and “sustaining old habits”, which are listed among the reasons, display an unexpected variation by years. Security concerns are observed to have increased to a certain extent in 2010 compared to 2009.


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Security problems are significant barrier for extensive use of ICT. The proportions of Internet users who experience security problems were 31%, 29%, 28.9%, and 46.8% in 2007, 2008, 2009, and 2010, respectively. The high ratio of 2010 is striking. The security problems most frequently encountered by individuals were computer viruses and junk e-mail or e-mail spam that cause time and information losses (Figure 1.19).

Figure 1.18: Reasons for not Preferring to Shop Online


Percentage

Security concerns

Privacy concerns

Very low Internet connection speed

Not having a credit card or virtual card, which enables payment over the Internet

Distrust regarding product delivery, return, complaint, and problem solving

Lack of knowledge/skills/confidence

Preferring to shop in person loyalty to theplace of sales, old habits

No need.. ..

. ...

. ..... ..

... .

..

. ...

..


A decline was experienced in 2010 in the proportions of security problems most frequently mentioned in all years, however computer viruses and e-mail spam maintained their places on the first rank with 36.4% and 32%, respectively. As different from the other years the problems concerning personal data were taken up with two separate answers and reservations about children were also included (Figure 1.20). According to this, the problems concerning personal data were stated to be “misuse of personal information sent over the Internet and other security violations” with 3.5% and “financial losses as a result of receiving fake messages or acquisition of personal data by being directed to fake websites” with 2.8%.

Figure 1.19: Security Problems Experienced by Internet Users


Percentage

Credit card fraud

Disclosure of personal information to third parties over

the Internet

Receiving e-mail spam

Computer viruses causing loss of time or information

..

..

..

.

..

..

..

..


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In 2010, 58.1% of individuals using the Internet within the past 12 months stated that they used security tools. Internet users preferred virus protection and/or anti spyware software at quite a high percentage (Figure 1.21). In Turkey 4.8% of individuals used parent control or web filtering software. The difference that attracts attention between urban and rural areas is that firewall was used more frequently in urban areas while the ratio of the use of parent control and web filtering software was higher in rural areas.

Figure 1.20: Security Problems Experienced by Internet Users, 2010


Percentage

Children visiting inappropriate sites or communicating with dangerous people

Financial losses due to theft and use of credit card information

Phishing

Misuse of personal information sent over the Internet and other security violations

Receiving e-mail spam

Computer viruses causing loss of time or information and other computer problems

(such as worms, trojan, etc.)

.

.

.

.

.

.


1.2 ICT Access in Households

The Internet access in households has rapidly increased by years in Turkey. The percentages of households with Internet access in 2010 were 41.6%, 48.7%, and 24% for Turkey in general, urban and rural areas, respectively (Figure 1.22). Majority of households have broadband Internet access through Digital Subscriber Line (DSL), fixed (wired) and wireless connections and 3G connection. The broadband access ratio in households was 33.8% in 2010.

Figure 1.21: Use of Information Security Products, 2010


Percentage

TurkeyUrbanRural

Virus protection and/or anti spyware software

Firewall hardware or software

E-mail filtering to prevent e-mail spam

Parent control or web filtering software

Use a security package but does not know the content

..

.

..

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.

..

.

..

.


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On the other hand, looking at Internet access of households by type of connection, we can see from the figure that there was a great demand from users for the Digital Subscriber Line (DSL), 19.3% of the households with Internet access had DSL connection in 2005, and this ratio reached 85.6% in 2009 (Figure 1.23). The ratios of WAP and GPRS connection ownership, which are referred to as narrowband access over mobile phones, declined during the 2005 – 2008 period, however an increase was observed after 2009. This situation arises since mobile phone ownership, which enables internet access in households, is considered as a means of access from home regardless of the fact that mobile phones were used to access the internet. Therefore, when these results are evaluated, it should be noted that the means of Internet connection in households are examined here and the answers provided in the surveys do not reflect the type of connection preferred for Internet access. On the other hand, when the increasing number of DSL subscribers is taken into consideration, there is no reasonable explanation for the drop in the ratio of DSL as a type of Internet connection in households.

Figure 1.22: Households with Internet Access


Turkey Urban Rural

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10

20

30

40

50

60

. . .

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On the other hand, the 3G technology, which enables rapid access to the Internet over mobile infrastructure entered the market in August 2009. Questions regarding connection via the 3G technology were asked in the 2010 survey for the first time. The results of the survey shows that 5.6% of the households with Internet access used mobile phones and 2.3% used 3G modems to enable such access (Table 1.5).

Figure 1.23: Internet Access of Households by Type of Connection


Note: Fixed wired connection covers only Cable Internet before 2010 and both Cable and fiber connections in 2010

Percentage

Mobile phone (WAP, GPRS)CableADSL, SDSLDial-up connection

.

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Table 1.5: Internet Access of Households by Type of Connection, 2010

(Percentage)

Type of Internet ConnectionHouseholds with Internet

Access All households

Turkey Urban Rural Turkey Urban Rural

Dial-up connection (fixed telephone line) or ISDN 5.6 5.9 4.0 2.3 2.9 0.9

ADSL (cable or wireless modem) 73.3 76.0 59.3 30.5 37.0 14.2

Fixed cable (Cable Internet, fiber connections, etc.) 4.8 5.2 2.7 2.0 2.5 0.6

Fixed wireless (satellite, Wi-Fi, etc.) 3.1 3.0 3.6 1.3 1.5 0.9

3G connection over mobile phones 5.6 6.3 2.3 2.3 3.1 0.6

Mobile connection over 3G modem 2.3 2.1 3.3 0.9 1.0 0.8

WAP, GPRS connection over mobile phones 23.8 21.0 37.8 9.9 10.2 9.1

Not known 0.4 0.3 1.0 0.2 0.1 0.2


As it can be seen from Table 1.5, in rural areas fixed cable connection and 3G connection over mobile phones remained well behind the urban areas in 2010 while the ratios of narrowband connection over mobile phones and connection over 3G modem were higher in rural areas. The findings indicate that individuals in rural areas have mobile technologies supporting Internet connection and modems are more frequently preferred to mobile phones to benefit from the 3G technology.

The hardware mostly used by households for Internet access is personal computer (Figure 1.24). When computer ownership at homes is taken up in terms of desktop computers, portable computers, or hand-held computers, this ratio was 44.2% throughout Turkey in general, 52.9% in urban areas, and 22.4% in rural areas in 2010. Similarly, the ratios of accessing the Internet on any computer at home were 34%, 41.3%, and 15.8% in Turkey, urban and rural areas, respectively. The high ratio of mobile phone ownership throughout the country, which is 90.5%, and this ownership being represented by close values in urban and rural areas (92.8% and 85%) indicate the prevalence of mobile phone ownership throughout the country and creates a great opportunity for offering more services to citizens over mobile phones.


1.3 Use of ICT in Education

For better evaluation of the use of ICT in education it is very crucial to make detailed examination of the investments made by the Ministry of National Education (MNE) and of the use of ICT in education and to find out interprovincial differences. One of the fundamental issues here is the number of students per computer. The number of students per computer throughout the country is 30.9 in primary schools and 27.3 in secondary schools. The values for 5 provinces with the lowest and the highest values in terms of the number of students per computer in primary and secondary schools have been presented in Table 1.6 and the general situation by provinces has been given in Figure 1.25 and Figure 1.26.

Figure 1.24: ICT Equipment and Internet Connection Status in Households, 2010


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Mobile phone

Fixed line Desktop computer

Portable computer (laptop, tablet)

Hand-held computer

(Palm)

Game console

Internet connected equipment in householdsEquipment ownership in households

....

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Table 1.6: Number of Students per Computer, 2010

Seq. NoPrimary Schools Secondary Schools

Name of Province Number of students per computer Name of Province Number of students per

computer1 Tunceli 10.4 Tunceli 8.6

2 Artvin 11.9 Sinop 9.4

3 Bayburt 12.6 Bilecik 10.1

4 Burdur 13.9 Gümüşhane 10.1

5 Gümüşhane 14.8 Artvin 10.3

… … … … …

77 İstanbul 41.1 Diyarbakır 47.9

78 Antalya 41.4 Şanlıurfa 48.3

79 Şanlıurfa 44.7 Gaziantep 53.4

80 Bursa 49.5 Batman 56.7

81 Gaziantep 51.9 İstanbul 65.3

Source: MNENote: Values belong to public schools.

Box 1.5 Infrastructure Investments for ICT Education Purposes

Major progress has been achieved in the establishment of ICT infrastructure in schools with the investments made by MNE. As of the end of 2009, 27,999 information technology (IT) laboratories were established and ICT equipments were provided to 17,261 primary schools without the necessary capacity for the establishment of ICT infrastructure in a way that one computer was provided for every 15 students and one projection device, one printer, and one scanner for every school. The FATIH (Action for Increasing Opportunities and Improving Technology) project, which was introduced by the Ministry in 2010, brings about a new understanding towards strengthening the infrastructure and use of information technology in schools as well as new investments. The establishment of 1,850 of the Public Internet Access Points (PIAP), aimed to provide ICT access and ICT competency to citizens, has been completed by the MNE. In addition, there are also similar centers established by municipalities, the private sector, and non-governmental organizations.


Figure 1.25: Number of Students per Computer in Primary Schools, 2010

Figure 1.26: Number of Students per Computer in Secondary Schools, 2010


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24.6 and 17.8 in primary and secondary education, respectively. The values for 5 provinces with the lowest and 5 provinces with the highest number of teachers per computer in primary and secondary schools are presented in Table 1.7 and the general situation by provinces has been given in Figure 1.27 and Figure 1.28.

Table 1.7: Number of Teachers per Computer, 2010

Seq. NoPrimary Schools Secondary Schools

Name of Province Number of students per computer Name of Province Number of students per

computer

1 Tunceli 12.0 Gümüşhane 7.7

2 Artvin 12.1 Artvin 7.7

3 Bayburt 13.6 Tunceli 7.8

4 Edirne 14.7 Bayburt 8.0

5 Sinop 14.9 Ardahan 9.0

… … … … …

77 Antalya 33.4 Mersin 24.8

78 Şanlıurfa 34.2 Batman 25.1

79 Diyarbakır 34.9 Diyarbakır 25.1

80 Ağrı 39.0 Gaziantep 26.0

81 Batman 44.7 İstanbul 33.1

Source: MNENote: Values belong to public schools.

The MNE requires that a school has at least 8 classrooms and 150 students in order to qualify for the establishment of an IT laboratory. Since the existence of a certain capacity is required for establishment at school basis rather than establishing IT laboratories in all schools, there is no meaningful correlation between the number of schools or students and the number of IT laboratories in provinces. To give a general idea about the subject, the numbers of schools and IT laboratories in 5 provinces with the highest and 5 provinces with the lowest number of IT laboratories for primary and secondary schools are provided in Table 1.8.


Figure 1.27: Number of Teachers per Computer in Primary Schools, 2010

Figure 1.28: Number of Teachers per Computer in Secondary Schools, 2010


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Table 1.8: Number of IT Laboratories, 2010

Seq. NoPrimary Schools Secondary Schools Total

Name of Province

Number of IT laboratories

Name of Province


Name of Province


1 İstanbul 2333 İstanbul 782 İstanbul 3115

2 Ankara 816 Ankara 649 Ankara 1465

3 İzmir 644 İzmir 493 İzmir 1137

4 Konya 510 Konya 389 Konya 899

5 Adana 392 Bursa 314 Bursa 671

… … … … … … …

77 Çankırı 47 Tunceli 44 Yalova 105

78 Bayburt 40 Iğdır 43 Tunceli 83

79 Tunceli 39 Ardahan 38 Ardahan 75

80 Ardahan 37 Kilis 31 Bayburt 70

81 Kilis 36 Bayburt 30 Kilis 67

Source: MNENote: Values belong to public schools. No IT laboratories were established in 2010, therefore the values are the same with those of 2009.

Another matter that needs to be evaluated is the work done to enable citizens to acquire ICT competency. However, since the contents of training and the certificate criteria in this field have not been fully clarified yet and due to lack of data, there is no possibility to make a clear evaluation concerning the acquisition of ICT competency by citizens. According to the data provided by the MNE, ICT training was provided to a total of 191,186 teachers through in-service training by the MNE between 2007 and 2010. The MNE states that a total of 42,373 persons comprising of 38,408 men and 3,965 women were provided with ICT training and certificates throughout the country in general in 2008, 2009, and 2010. These values represent the number of persons trained in ICT courses provided within the structure of the MNE in general and they do not reflect the number of training courses that are specific to PIAPs only. Training courses are also provided at centers established by various agencies and organizations that are similar to PIAPs, however, collective data, which accurately reflect the number or persons receiving ICT training throughout the country in general, cannot be reached.


KEY INDICATORSA total of 13 key indicators have been determined in the social transformation

section of the Strategy to monitor transformation into an information society. The target values concerning these indicators and the values related to the levels reached are presented in Table 1.9.

The values projected in 2007, 2008, and 2009 with regard to Internet usage were exceeded within the past three months, however, a drop to a level just below the target value was seen in 2010. While the Internet usage targets for students and the unemployed were surpassed, the ratio of Internet usage for those employed remained behind the target values.

Deviations from the target are also observed in the indicators concerning the efficient use of the Internet, which refers to its usage to create economic and social benefit. Even though the ratio of the individuals that perform online banking transactions seized the target value in 2007, it subsequently took place below the target values and displayed a considerable increase in 2010 despite the fact that it still remained below the target. The use of e-Government services were also below the targets in all years and the point reached in this area was well behind the desired

Box 1.6: Empowerment of Youth for e-Transformation of Turkey ProjectThe “Empowerment of Youth for E-Transformation of Turkey” project, which is being

carried out with the cooperation of the public and private sectors and non-governmental organizations, contributes to the e-transformation process of Turkey through increasing the capacities of socioeconomically disadvantaged individuals, particularly the youth, with regard to ICT. The project, which was started to be implemented in 2005, has covered 78 provinces and reached more than 1,000 volunteering trainers as of April 2011 and the number of persons, who acquired basic computer literacy skills, has exceeded 130,000. Thanks to the city councils and youth assemblies in provinces the project can be implemented on a widespread basis and the volunteering trainers, who work in the project, join the project through the channel of youth assemblies. Computer and Internet training courses are provided locally by using the places and infrastructure provided by Ministries and local administrations and Continuous Training Centers and IT Academies are opened with the support of local administrations in places where the relevant infrastructure is inadequate. The project was awarded with a medal in the Geographical Inclusion category of e-Inclusion Awards of the European Commission.


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the major increase experienced in 2010 was striking.

Progress has been achieved with regard to Internet access and broadband subscription in households and the objective values have been surpassed. Even though the ratio of users, who experience security problems, were projected to increase first and then decrease with effective use of the Strategy. It displayed a continuous tendency to drop slightly after 2007, however a significant increase was observed in 2010. The ratio of “experiencing security problems”, which was below the projected values in previous years, should be evaluated together with the level of awareness of citizens about security problems.

Table 1.9: Progress in Key Indicators concerning Social Transformation

(Percentage)

Indicator KEY INDICATOR 2007T

2007A

2008T

2008A

2009T

2009A

2010T

2010A

3 Households with computers connected to the Internet 8.7 15.8 12.4 19.5 20.0 22.5 32.5 34.0

12 Internet user individuals 16.5 26. 9 20.8 32.2 28.7 34.0 39.8 37.6

12 Internet user students 56.8 82.8 63.1 83.3 73.7 88.2 86.0 89.5

12 Internet user employees 23.4 36.0 31.7 42.4 44.2 44.6 60.4 49.0

12 Internet users, who are unemployed 23.9 42.2 28.4 48.7 36.4 41.6 46.6 48.2

14 Individuals, who access the Internet from PIAPs 0.4 - 0.6 - 1.3 - 2.7 -

15Employees and the unemployed, who use the Internet for training purposes

2.3 - 4.2 - 9.1 - 19.8 -

15 Students, who use the Internet for training purposes 39.2 - 45.1 - 55.1 - 67.4 -

15 Individuals, who perform online banking 3.5 4.0 5.5 4.9 10.4 4.8 19.5 16.8

15 Individuals, who do online shopping 3.6 0.8 5.5 1.3 10.0 0.7 18.2 6.3

20 Users, who experience security problems 32.0 31.0 35.0 29.0 33.0 28.9 28.0 46.8

62 Individuals, who use e-Government services 8.1 7.2 10.9 8.4 16.6 7.5 25.2 10.8

106 Broadband subscriber penetration 3.8 6.5 5.8 8.4 8.0 9.4 10.0 11.6

T: Target Value, A: Actual Value(*) The data for 2010 indicates connection to the Internet with desktop, portable or hand-held (palm) computers and those belonging to previous years only show connection with desktop computers.


INTERNATIONAL COMPARISONSAs indicated in the Information Society Strategy the digital divide exists not only

among different groups in Turkey but also among countries. We aimed to increase the ICT usage throughout Turkey and to close the gap with developed countries. However, even though a progress was made during the 2007 – 2010 period, the difference in terms of ICT usage still continues between the EU and Turkey (Figure 1.29, Figure 1.30).

Figure 1.29: Ratios of Internet Usage within the Last 3 Months in the EU and in Turkey

Source: The values for the EU were obtained from EUROSTAT (as of April 2011) and those for Turkey were obtained from TURKSTAT. The value for Turkey concerning 2006 is an estimate of the SPO.

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EU-15EU-25EU-27

EU-27

EU-25

EU-15


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Another matter that needs to be evaluated is the Internet access and broadband Internet ownership in households. Even though a significant increase was achieved during the 2007-2010 period, as in the Internet usage, there is a major difference between Turkey and the EU in terms of the ratios of Internet access and broadband Internet ownership in households (Figure 1.31, Figure 1.32).

Figure 1.30: Ratios of Regular Internet Usage in the EU and in Turkey

Source: The values for the EU were obtained from EUROSTAT (as of April 2011) and those for Turkey were obtained from TURKSTAT.

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Turkey

EU-15EU-25EU-27

EU-15

EU-25EU-27


Figure 1.31: Households with Internet Access in the EU and Turkey


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EU-25

EU-15

Turkey

EU-15EU-25EU-27


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TurkeyEU-27

EU-25

EU-15

EU-15EU-25EU-27


Today, the prevalence of ICT has caused significant and permanent transformations in the business world. Rapid penetration of these technologies into all aspects of the business processes makes serious structural transformations necessary for enterprises. The abilities of enterprises to acquire, develop, and manage information have become the main component of economic growth, productivity, and competitiveness. In this respect, effective adoption of ICT by businesses has crucial importance in terms of the economy for becoming information based, generating higher added value, and creating new fields of business. The results of the Enterprise Use of Information Technologies Survey carried out by TURKSTAT provide a basis for the efforts to determine the prevalence and scope of ICT usage by the enterprises in Turkey in all areas of their respective business processes and to examine the increases or decreases that might be seen in their productivity levels.

2 INFORMATION ANDCOMMUNICATION TECHNOLOGIES ADOPTION BY BUSINESSES


2.1 ICT Access and Use in Enterprises

Box 2.1: Use of Information Technologies in EnterprisesThe Enterprise Use of Information Technologies Survey, which was carried out in 2005

for the first time, was modified in 2007, 2008, 2009, and 2010 according to the methodology revised by EUROSTAT and applied to enterprises with 10 and more (10+) employees in selected sectors. In these surveys, some of the indicators obtained from enterprises, provide information about January of the current year and some others reflect previous year’s data. The survey, which is prepared and conducted by TURKSTAT in Turkey every year, was applied to 4,027, 5,641, 7,582, and 10,573 enterprises in 2007, 2008, 2009, and 2010, respectively.

In the statistics produced by Eurostat, the NACE (European Classification of Economic Activities) Rev. 1.1 (ANNEX-5) classification was used for the surveys conducted before 2010 and that of NACE Rev. 2 (ANNEX-7) was used for those applied in 2010. In addition, some significant changes were made in the statistics created in 2010 due to the modification of some sections included in the survey. Some statistics kept in previous years under this heading were excluded from the study with some new statistics replacing them. The questions and statistics belonging to the headings “e-Commerce in Enterprises” and “ICT Personnel Employment”, which were covered in surveys conducted before 2010, were removed from the scope, and new questions prepared under the heading “Information and Communication Technologies Security” were added to replace them. In parallel with the changes mentioned above, outdated sections were excluded from the Information Society Statistics 2011 publication and new sections were added. Statistics belonging to previous years may be accessed from Information Society Statistics 2009 and Information Society Statistics 2010 publications.

Box 2.2: Numbers and Distribution of Enterprises in TurkeyAccording to the results of the Annual Industry and Service Statistics Survey of 2010

conducted by TURKSTAT on a regular basis, 2,583,099 enterprises operated in Turkey in 2008. When the first three sectors in terms of the total number of enterprises is examined, 45.6% of these enterprises operated in wholesale and retail trade; repair of motor vehicles, motorcycles and personal and household goods sectors, 16.9% in transport, storage, and communication sectors; and 12.5% in the manufacturing industry sector. The total employment in industry and service sectors was 10,087,751 persons in 2008. 31% of the total employment was in wholesale and retail trade; repair of motor vehicles, motorcycles and personal and household goods sectors in 2008 while 28.3% was in the manufacturing industry, and 9.9% in transport, storage, and communication sectors.

The added value at factor cost took place as TL 270,493,624,299 in 2008. 52.2% of the total added value created in 2008 was in the services sector.


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While the ratios of computer usage and Internet access in enterprises were 87.8% and 80.4%, respectively, in January 2005, these levels increased to 92.3% and 90.9% in January 2010 (Figure 2.1, Figure 2.2). Even though these two ratios increased by years, a downward trend is seen in web page ownership. The web page ownership rate of enterprises with Internet access dropped from 63.1% in January 2007 to 57.8% in January 2010 (Figure 2.3).

According to the data of the Nic.tr Management within the structure of METU (Middle East Technical University), the number of domain names with “com.tr” extension provided for enterprises carrying out commercial activities in Turkey was 160,119 as of the end of 2010. This low number probably arises from the fact that the majority of enterprises with websites in Turkey prefer domain names with “com” extension rather than “com.tr” for their websites.

Figure 2.1: Ratio of Enterprises where Computers are Used

Source: TURKSTAT Enterprise Use of Information Technologies Survey

Group Size

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A parallel trend is observed between these indicators and sizes of enterprises. To give an example, while computer usage, Internet access, and web page ownership rates were around 91.3%, 89.7%, and 53.5%, respectively in enterprises with 10 – 49 employees in 2010, these rates were around 98.5%, 98.4%, and 88.8% for enterprises with 250+ employees. In addition, while the ratio of web page ownership showed a fall in enterprises with 10-49 employees, it increased in general in those with 50-249 and 250 + employees with some fall in some years.

Figure 2.2: Ratio of Enterprises with Internet Access


Group Size

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31.6% of the employees working in enterprises, where computers are used, used computers at least once in a week in January 2010 (Figure 2.4). The ratio of employees, who connect to the Internet at least once in a week in enterprises with Internet access was 28.5% during the same period (Figure 2.5). An increase was observed by years in both computer usage and internet connection ratios of all enterprises. This trend applies to both indicators for all size groups.

Figure 2.3: Web Page Ownership Ratio of Enterprises with Internet Access


Group Size

Perc

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Figure 2.4: Ratio of Employees Using Computers at least once a Week in Enterprises


Figure 2.5: Ratio of Employees Using the Internet at least once a Week in Enterprises


Group Size

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78.1% of enterprises with Internet access used the Internet for banking and financial services and 28.3% used it for training and education in January 2010 (Figure 2.6). Despite the 1.8% increase in the usage for banking and financial services in 2010 compared to previous years, a decrease by 3.3% was seen in the usage for training and education purposes.

The type of connection most frequently used by enterprises for Internet access in January 2010 was DSL (ADSL, etc.) represented by 87.3% (Figure 2.7). It is possible to explain the considerable decrease in the DSL connection usage ratio within 2010 with the prevalence of other fixed connections, and particularly mobile connections with 3G technology and the much higher adoption of these types of connections by enterprises. With the spreading of the 3G technology as of 2010, a serious increase was observed in the rate of enterprises using this technology (Figure 2.8).

Figure 2.6: Internet Usage Purposes in Enterprises


Banking and financial services Training and education

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. . ..


Figure 2.7: Types of Fixed Internet Connection in Enterprises

Figure 2.8: Types of Mobile Internet Connection in Enterprises, 2010


Source: TURKSTAT Enterprise Use of Information Technologies Survey, 2010

Percentage

DSL connection (ADSL, SHDSL, ect.)

Dial-up and ISDN connection

Other fixed connections (Leased

lines such as cable and frame relay,

metro ethernet, etc.) ..

..

...

.

....

Percentage

Mobile broadband connection with

the help of portable computers

Mobile broadband connection with

the help of 3G telephones

Other mobile connection (GPRS,

EDGE, etc.)

.

.

.


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Wired Local Area Network came first in network connections in enterprises, where computers are used (Figure 2.9).

According to the results of the survey, while the “product marketing” was first among the services provided by enterprises with a website in 2007, “catalogues and price lists” ranked first in subsequent years (Figure 2.10). The ratio of enterprises performing online purchase order, reservation, or registration transactions remained at a low level with 15.6% according to the 2010 results. Based on the data obtained from the Interbank Card Center, the total amount of e-commerce transactions completed over the Internet rose within the past year to 15 billion 225 million TL in 2010 with a 48.2% increase (Figure 2.11). When these numbers are taken into consideration, it is possible to say that the average business volumes of enterprises selling products and services online increased substantially in 2010.

Figure 2.9: Network Technologies Used in Enterprises


Wired Local Area Network

Wireless Local Area Network

Intranet Extranet

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Figure 2.10: Services Provided by Enterprises over the Internet

Figure 2.11: Volume of e-Commerce Transactions Completed with Virtual POS


Source: Interbank Card Center

0

2.000

4.000

6.000

8.000

10.000

12.000

14.000

16.000

Mill

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Percentage

Product catalogues and price lists

Marketing of products

Support services after sales

Customized product design / preparation

Online purchase order, reservation, registration

Customization of website contents

Announcement of vacant positions, online job applications .

..

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The ratio of enterprises with computers using automated data exchange with agencies / organizations and other enterprises was 29.3% in January 2010. “Sending / receiving product information” was the premier reason with 71.2% (Figure 2.12). This was followed by “sending / receiving data to and from public agencies” and “sending payment orders to financial institutions” with 66.8% and 64.2%.

Figure 2.12: Reasons why Enterprises Use Automated Data Exchange


Percentage

Sending or receiving data to or from public agencies

Sending payment orders to financial institutions

Sending or receiving shipment information

Sending or receiving product information

Sending e-invoices

Receiving orders from customers

Receiving e-invoices

Sending purchase orders to suppliers

..

..

..

..

..

..

..

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Electronic signature is used in 10.1% of enterprises with 10+ employees. When the use of e-signature is considered on a sectoral basis, it is seen that 41.4% of the enterprises operating in the sector of “insurance activities excluding obligatory social security and pension funds” use e-signatures and this sector comes first in terms of e-signature usage. By the size of enterprises, those with 250 and more employees come to the fore in e-signature usage with a ratio of 26% (Figure 2.13).

Figure 2.13: Ratio of Electronic Signature Usage in Enterprises, 2010


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2.2 Automated Information Sharing in Enterprises

The first three sectors among those where enterprises, which electronically and automatically share the relevant information both at receipt and placement of purchase orders among their different units, operate in sectors of: (1) Repair of computers and communication equipment, (2) Information and communication, and, (3) Finance and activities related to insurance excluding obligatory social security and pension funds (Figure 2.14).

Figure 2.14: Ratio of Enterprises Sharing Order Information Internally, 2010


Note: The NACE Rev. 2 Statistical Classification of the sectors covered in the 2010 survey has been included in ANNEX-7.

Percentage

Related to purchase orders they receive Related to purchase orders they place

Manufacturing industry (Section C)

Generation and distribution of electricity, gas, steam, and ventilation systems; water supply, sewerage and waste management and rehabilitation activities (Section D, E)

Construction (Section F)

Wholesale and retail trade; repair of motor vehicles (Section G)

Transportation and storage (Section H)

Accommodation and food service activities (Section I)

Information and communication (Section J)

Real estate activities (Section L)

Professional, scientific, and technical activities (Group 69 and 74)

Administrative and support service activities (Section N)

Repair of computers and communication equipment

Finance and insurance activities excluding obligatory social security and pension funds (Group 64.19,

64.92, 65.1, 65.2, 66.12, and 66.19)

36.530.0

38.732.4

22.319.0

36.429.3

32.123.9

28.824.1

47.338.1

28.819.1

32.623.7

30.824.7

63.656.9

44.940.7


In 2009, the ratios of enterprises receiving and placing purchase orders over computer networks were 8.4% and 15%, respectively. Enterprises operating in the information and communication sector come first with 14.3% (receiving purchase orders) and 32.4% (placing purchase orders) (Figure 2.15).

Figure 2.15: Ratios of Receiving / Placing Orders over Computer Networks by Enterprises, 2009


Percentage


Electricity, gas, steam and air conditioning supply and water supply; sewerage, waste management and remediation

activities (Section D,E)


Wholesale and retail trade; repair of motor vehicles and motorcycles (Section G)








Receiving ordersPlacing orders

9.912.8

4.09.5

2.611.6

9.019.8

6.89.2

13.814.8

14.3

4.316.1

4.414.3

7.912.8

13.37.8


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Spreading of modern business applications like enterprise resource planning, supply chain management, and customer relations management in enterprises enable these enterprises to increase their competitive power. When the development of the usage prevalence of such business applications in enterprises in Turkey is examined, as of the 2007-2010 period, it is seen that customer relations management increased from 8.6% to 32.7%, supply chain management rose from 5.6% to 16%, and enterprise resource planning increased from 7.8% to 15.3% (Figure 2.16).

Figure 2.16: Ratio of ERP, SCM, and CRM Usage in Enterprises


Perc

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Enterprise Resource Management (ERP)

Supply Chain Management (SCM)

Customer Relations Management (CRM)

.

. .

.

. .

.

.

.

.

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2.3 Information and Communication Technologies Security

The ratio of enterprises with an ICT-related security policy, which refers to the measures, controls, and methods applied on information systems with the aim of ensuring the integrity, originality, accessibility, and confidentiality of data and systems within an enterprise, is 21.9%. The three leading sectors with a security policy are: (1) Insurance activities excluding obligatory social security and pension funds, (2) Repair of computers and communication equipment, (3) Information and communication (Figure 2.17).

Figure 2.17: Ratio of Enterprises with ICT Security Policy, 2010


Percentage

Financial service activities, except insurance and pension funding (Group 64.19, 64.92, 65.1, 65.2,

66.12, and 66.19)










Electricity, gas, steam and air conditioning supply and water supply; sewerage, waste management and

remediation activities (Section D,E)

Manufacturing industry (Section C) 20.8

39.8

13.5

23.8

25.3

20.6

42.0

29.8

31.4

19.0

58.5

62.7


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In enterprises having an ICT security policy, data corruption due to an unexpected incident or attack ranks first with 65.1% among the risks concerning such policy (Figure 2.18).

Voluntary training of employees through the intranet, news bulletins, or other printed documents comes before other options among the activities performed by enterprises with an ICT policy in order to notify their employees about their obligations in the field of ICT security (Figure 2.19).

Figure 2.18: Risks in Enterprises with ICT Security Policy , 2010


Percentage

Data corruption due to an unexpected incident or

attack

Phishingor data spill

Inability to provide ICT services due to external

attacks

.

.

.


“Inability to provide ICT services because of loss of data due to hardware or software errors” and “corruption or loss of data due to hardware or software errors” are the two most important incidents related to ICT security among those affecting the systems of enterprises in the field of ICT security in 2009 (Figure 2.20).

Among the internal security means or methods for ensuring ICT security, enterprises most frequently use “strong password and identity verification” and “data backup in different media” in an effort to protect their systems (Figure 2.21).

Figure 2.19: Methods of Informing Employees with respect to ICT Security in Enterprises, 2010


Percentage

Compulsory training and presentations

Contracts (such as employment contracts)

Voluntary training (such as intranet, news bulletins or other printed documents)

.

.

.


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Figure 2.20: Incidents related to ICT Security that affect the Systems of Enterprises, 2009

Figure 2.21: Internal Security Means or Methods Used by Enterprises, 2010



Percentage

Inability to provide IT services because of loss of data due to

hardware or software errors

Inability to provide ICT services due to external attacks

Corruption or loss of data due to malware or unauthorized access

Phishing or data spill

Data breach .

.

.

.

.

Percentage

Strong password or identity verification

User identification and verification through hardware labeling

User identification and verification with biometric methods

Offside data backup

Listing activities for security incident analysis

.

.

.

.

.


KEY INDICATORS

Table 2.1: Progress in Key Indicators concerning ICT Adoption by Businesses

(Percentage)

Indicator. No KEY INDICATOR 2007

T2007

A2008

T2008

A2009

T2009

A2010

T2010

A

30 Ratio of enterprises with computers 64 88.7 67 90.6 73 90.7 86 92.3

32 Ratio of enterprises with broadband Internet access * 23 80.5 26 85.0 34 84.0 53 90.9

41 Share of e-Commerce sales in total turnover 2 - 3 - 4 - 9 -

50Ratio of enterprises that use enterprise resource management

2 7.8 3 10.8 4 10.0 9 15.3

51 Ratio of enterprises that use supply chain management 1 5.6 1 6.6 3 11.9 8 16.0

52Ratio of enterprises that use customer relations management

0.4 8.6 0.5 12.5 1.3 7.1 3.5 32.7

63

Ratio of enterprises that benefit from public services provided through electronic channels for obtaining information ***

- 78.4 - 83.6 - 81.5 90** 81.5

63

Ratio of enterprises that benefit from public services provided through electronic channels for downloading forms ***

- 72.3 - 77.0 - 73.8 80** 82.8

63

Ratio of enterprises that benefit from public services provided through electronic channels for filling out forms ***

- 59.5 - 64.1 - 57.9 60** 57.5

63Ratio of enterprises that complete their transactions over electronic channels

- - - - - - 30** -

T: Target Value, A: Actual Value(*) Total broadband connection value covering xDSL connection in 2007, 2008, and 2009 and all broadband connection types in 2010.(**) Even though these target values were given as 2011 target values in the Measurement Document, they were written as 2010 target values to enable comparison.(***) The data obtained from the 2007, 2008, 2009, and 2010 surveys belong to the years 2006, 2007, 2008, and 2009, respectively.

The values targeted in computer and broadband Internet ownership, which indicate ICT prevalence in enterprises, were exceeded in each year of the 2007 – 2010 period. In addition, the targeted values were also surpassed and an increase was


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observed throughout the period in terms of the use of enterprise resource planning, supply chain management, and customer relations management, which show the use of ICT by enterprises in their own business processes. Furthermore, when the ratios of enterprises’ benefiting from public services provided through electronic channels are examined, it is seen that the target value could not be reached in the indicator representing the purpose of obtaining information and the actual values for purposes of downloading forms and filling out forms were around the target values.

INTERNATIONAL COMPARISONSWhen the Internet access ownership rates of the enterprises in Turkey are

compared with those in the EU, a significant tendency of convergence is observed, except for a slight recession in 2009 (Figure 2.22). The ratio of Internet access by the enterprises in Turkey displayed a major progress and increased from 80.4% in 2005

Figure 2.22: Ratio of Enterprises with Internet Access in Turkey and in the EU

Source: The values for the EU were obtained from EUROSTAT (as of March 2011) and those for Turkey were obta-ined from TURKSTAT.

Perc

enta

ge

Turkey

Turkey

EU-15EU-25EU-27

EU-27

EU-25

EU-15

80

85

90

95

100

80,4

2005

91

91

92

85,4

2007

93

95

95

88,8

2009

94

95

96

89,2

2008

93

95

95

90,9

2010

94

95

95


to 90.9% in 2010. In the EU, this ratio is observed to have reached 94% in 2010 from 91% in 2005.

The enterprises in Turkey have reached a level above the EU-27 average over recent years in terms of broadband Internet access ownership. Even though a slight drop was experienced in 2009, Turkey reached a ratio that was also higher than that of the EU-15 average in terms of broadband Internet access in 2010 (Figure 2.23).

Figure 2.23: Ratio of Enterprises with Broadband Internet Access in Turkey and in the EU

Source: The values for the EU were obtained from EUROSTAT (as of March 2011) and those for Turkey were obta-ined from TURKSTAT.

Perc

enta

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Turkey

Turkey

EU-27

EU-27

EU-25

EU-25

EU-15

EU-15


Electronic government (e-government), which refers to the use of ICT in the provision of public services, enables the creation of a participatory, transparent, and accountable government structure, where users can access public services to be provided in electronic environment from different platforms, in a reliable manner, and from a single point, which is focused on the needs of citizens and business world, and where synchronized and integrated services will be provided. With this structure, e-government is one of the most important devices in achieving a more efficient and effective public administration.1

Box 3.1: Financial Figures for Turkish Public Administration

Indicator 2009 2010

Total General Public Revenues (Billion TL) 330 389

Total General Public Expenditures (Billion TL) 382 429

General Public Revenues / GDP (Percent) 34.64 35.40

General Public Expenditures / GDP (Percent) 40.09 39.07

Source: SPO 2011 Program (actualization estimate for 2010 values)

1 In the Information Society Strategy, Citizen-Focused Service Transformation and Modernization in Public Administration were studied as two separate strategic priority areas. These two areas concerning e-Government have been evaluated under a single heading in this publication.

3 e-GOVERNMENT


In the Information Society Strategy, priority has been placed on certain critically important areas within the process of implementing e-government projects and applications. These are the prevention of duplications and individual public projects and applications that cause waste of resources, realization of envisaged projects in defined budget and time limits within the framework of project requirements, creation of the electronic public procurement infrastructure, which will enable significant resource savings, ensuring secure and reliable intra- and inter-agency information and document sharing in electronic environment, restructuring of service processes, and co-transformation of front and back office processes.

3.1 Public Sector ICT Investments (2002-2011)

e-Government applications and services are implemented through ICT investments made by public agencies. The ICT investments of central government agencies have been regularly monitored since 2002. An approximately 4-fold increase took place in central government ICT investments within a period of 10 years. The ICT investment allocation, which was about 526 million TL at 2011 prices, reached 2 billion TL in 2011. ICT investments have displayed a continuous increase compared to previous years, except for 2008 (Figure 3.1). Especially the projects in the education sector have had a major influence in the rapid increase experienced in 2011. The total project amount of 210 projects included in the 2011 Investment Program is 4.9 billion TL.

Figure 3.1: Public ICT Investment Allowance (2002-2011)

Source: SPO

Mill

ion

TL in

201

1 Pr

ices

,

,,


3.e-

GOVE

RNM

ENT

The ICT investment projects of public agencies mainly cover the procurement of software and hardware for maintaining the existing information systems. The number of application projects, which were included in the investment program in 2007 and afterwards and which were projected to be completed by no later than 2010, took place as 41. While the education and other public services sector took the largest share from the 2011 ICT investment allocations, transportation, communication, and health sectors constituted the sectors to which the largest amounts of ICT investment allowance were allocated (Figure 3.2). Details of the sectoral distribution of central government ICT investments by years have been provided in ANNEX-10.

According to the results of the survey conducted by the SPO in 2011 on public agencies that carry out ICT projects, all of the 70 agencies carrying out ICT projects prefer outsourcing. 40, 3, 5, 6, 5, and 11 of these agencies realize 0-10%, 10-25%, 25-50%, 50-75%, 75-90%, and 90+% of their projects, respectively, by outsourcing.

Figure 3.2: Sectoral Distribution of Public ICT Investments, 2011

Source: SPO

Percentage

EducationOther Public ServicesTransportation and CommunicationHealthAgricultureEnergyMiningManufacturingTourism

.

.

..

. ..

.

.


3.2 e-Government Gateway

The way and level of the provision of service over the Internet play an important role in users’ preference to access public services electronically. The e-Government Gateway, which aims the provision of public services from a single point in an integrated manner through different channels, started operation with 22 services on December 18, 2008. The number of services provided from the e-Government Gateway reached 246 as of the end of 2010 (Figure 3.3). The number of services is observed to have increased steadily following the activation of the e-Government Gateway. Nevertheless, it is striking that that most of these services are provided by a limited number of public agencies (Figure 3.4).

Figure 3.3: Number of Services Provided from the e-Government Gateway

Source: TURKSTAT


3.e-

GOVE

RNM

ENT

Considerable increases also took place in the number of users and the number of registered users reached 1.95 million at the end of 2010 and 7.14 million at the beginning of May 2011 (Figure 3.5). The start of provision of social security transactions and land registry information inquiries over the e-Government Gateway and the provision of electronic services by the Social Security Institution only over the e-Government Gateway lie behind this increase of approximately twenty folds in the number of users, which was 348,773 during the first six months of 2010. This situation reveals the importance of integrating frequently used services into the e-Government Gateway.

Figure 3.4: Distribution of Services Provided from the e-Government Gateway by Public Agencies, 2010

Source: TURKSTAT

0

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y


Figure 3.5: Number of e-Government Gateway Visitors

Source: TURKSTAT

Box 3.2: Public Sector WebsitesFigure 3.6: Number of Public Sector Websites

Source: nic.trNote: Other Public Agencies cover the domain names of bel.tr, k12.tr, edu.tr, pol.tr, mil.tr, tsk.tr. Values are as of the end of year for 2003 - 2010 and as of April 12 for 2011.

0

5.000

10.000

15.000

20.000

25.000

30.000

1.647

2003

1.138

2.785

2.315

2004

2.483

4.798

3.310

2005

4.805

8.115

5.595

2006

12.137

17.732

6.992

2007

12.216

19.208

7.918

2008

12.028

19.946

8.766

2009

12.475

21.241

9.737

2010

13.488

23.225

10.107

2011

13.728

23.835

Mill

ion

(May)

Total

gov.tr

gov.tr

Total

Other public agencies

Other public agencies

,

,

,

,

,

,

, , , , , , , , ,

, , , , , , , , ,

, , , , , , , , ,


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Box 3.3: Automatic Public Services with e-GovernmentWith the establishment of the main information systems that constitute the basis for

the service provision of public agencies, enabling interoperability among agencies, and data exchange in electronic environment, the services, which previously required filing applications and submission of numerous documents by users, have started to be provided automatically.

Following the integration of the MERNIS system, where real persons are identified with a single and unique identity number, to the Address Registration System, in which address information of people are kept, the sharing of identity and address information with the relevant agencies over the Identity Verification (Information Sharing) System has enabled government agencies to provide a wider range of innovative and useful services online, without the need for the citizens to make an application. 14.2 billion identity and address inquiries were verified over the Identity Information Sharing System since 2005, in which this system was put into practice, until May 2011. As of May 2011, 3,257 agencies and organizations are sharing (verifying) identity and address information from the system.

The Supreme Electoral Board generates the register of voters automatically based on the information obtained from MERNIS. Voters, who were not previously registered, or those reaching the age to vote do not need to make application. Likewise, addresses of the voters are also automatically updated over the Address Registration System. The Supreme Electoral Board organized the electoral registers and address information of 48,049,446 voters in the General Elections for Local Administrations of March 29, 2009, 49,495,493 voters in the Referendum for Constitutional Amendment on September 12, 2010, and 50,189,930 voters during the General Parliamentary Elections for the 24th Period on June 12, 2011.

The Ministry of National Education finds out the children reaching the age of school over MERNIS and enrolls these children in schools closest to their addresses. 1,310,760 and 1,257,457 students pre-registered in 2009-2010 and 2010-2011 academic years, respectively.

The Ministry of Health has automatically assigned family physicians for 72,560,510 citizens as of the end of 2010 by verifying their identity and address information from the Identity Sharing (verification) System.

Source: Ministry of Interior General Directorate of Population and Citizenship Affairs, Supreme Election Board, Ministry of National Education, Ministry of Health

3.3 Use of e-Government Services

In the process of implementing e-Government applications, in addition to more efficient and effective provision of public services, increasing the level of access and skills of citizens and the businesses are also critically important.


The results of the Household Use of Information Technologies Survey and the Enterprise Use of Information Technologies Survey2 conducted by the TURKSTAT provide information regarding the access to and use of public services in electronic environment by citizens and enterprises. According to these results, a limited increase is observed by years in the ratios of Internet use by individuals and enterprises in their transactions with the public sector. However, it is understood that enterprises communicate with the public sector more intensely in electronic environment compared to individuals (Figure 3.7). In 2009, 72.8 percent of the enterprises used the Internet in communicating with public agencies. This ratio corresponds to 66.1% in all enterprises. The sectors of “finance and activities related to insurance excluding obligatory social security and pension funds” (89.8%) and “repair of computers and communication equipment” (88.3%) got the first two places with the highest ratios in terms of the subject usage (Figure 3.8).

2 The 2007, 2008, and 2009 values of the Household Use of Information Technologies Survey for communication with public agencies cover the activities performed within the past 3 months and the 2010 values reflect those performed within the past 12 months. The Enterprise Use of Information Technologies Survey, on the other hand, examined the activities performed within the past 12 months.

Figure 3.7: Ratios of Internet Usage in Communicating with the Public Sector by Household Members and Enterprises

Source: TURKSTAT Household and Enterprise Use of Information Technologies Surveys

0

10

20

30

40

50

60

70

80

90

100

Perc

enta

ge

Enterprise Household

.. . .

.

..

..


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Figure 3.8: Distribution of Enterprises that use the Internet in Communicating with the Public Sector, 2009


Percentage


Electricity, gas, steam and air conditioning supply and water supply; sewerage, waste management

and remediation activities (Section D,E)










Financial service activities, except insurance and pension funding (Group 64.19, 64.92, 65.1,

65.2, 66.12, and 66.19)

69.3

85.4

60.5

64.8

51.0

64

82.5

62.6

83.4

69.0

88.3

89.8


On the other hand, obtaining information ranks first among the purposes of individuals for using the Internet in communicating with public agencies (Figure 3.9).

Obtaining information was the most common activity of enterprises using the Internet in communicating with public agencies (Figure 3.10).

Figure 3.9: Activities carried out by Individuals who use the Internet in Communicating with the Public Sector


Percentage

Obtaining information

Downloading forms / documents

Filling / sending forms

Other

..

..

..

..

..

..

.


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The distribution of the reasons given by individuals for not using e-government services shows a significant variation compared to previous years. While the preference to carry out the transactions related to public services face to face in public offices came first in 2007, 2008, and 2009, not having the need for e-government services distinctly came to the forefront in 2010. The values in these two reasons, which differ considerably from the data of the previous years, should be observed carefully and evaluated together with the results to be obtained in the coming years. The ratio of unavailability of the service over the Internet dropped until 6.3%. Concerns related to security and cost, on the other hand, have maintained their low level by years (Figure 3.11).

Figure 3.10: Activities Carried out by Enterprises that use the Internet in Communicating with the Public Sector


Percentage

Submitting proposals in public

tenders

Filling / sending forms

Downloading forms / documents

Obtaining information

Performing administrative

transactions..

..

..

..

..

..

..

..

.


Figure 3.11: Reasons why People Choose not to Use e-Government Services


Among the reasons for the reluctance of enterprises, similar to previous years, to use e-government services, preference to meet face to face in public offices comes to the forefront with 66.6% (Figure 3.12). Nonetheless, other factors included among the reasons other than the “preference to meet face to face” are higher in terms of their ratios compared to individuals. Accordingly, while the “unavailability of the required services over the Internet or finding these services being very difficult” is revealed as the justification of 40.1% of the enterprises for not using the Internet

Percentage

Preference to meet face to face

Unavailability of the service over the Internet / difficult

to navigate

Not user friendly

Requirement of additional connection cost

Concerns related to security

Delay of feedback in emergency situations

Other (not feeling the need, etc.)

.

..

.

.

.

.

.

.

.

.

.

.

.

.

.

...

.

.

...

.

..

.


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in communicating with public agencies and organizations in 2009, 27.8% of the en-terprises did not prefer to use the Internet due to “delays of feedback in emergency situations” and 32.7% because of “concerns related to information security and pro-tection”. Within this context, it is observed that the feedback level of the public sector in emergency situations showed an improvement and a certain amount of decrea-se was experienced with regard to concerns related to information security in 2009.

While security concerns did not constitute a significant obstacle to individuals using e-government services, they stood out as a critical problem among the reasons for enterprises not to use the Internet in communicating with public agencies.

Percentage

Contacting public agencies over the Internet being very

complicated

Additional costs

Concerns regarding the security and protection of

information

Delay of feedback in emergency situations

Preference to meetface to face

Unavailability of the services over the Internet

Other

..

..

..

..

..

..

..

..

...

.

...

..


The accessibility of government websites by everyone is also an important issue. From this point of view, it is seen that the public websites that provide access to the disabled showed a significant increase in 2010 by reaching 17.9% from 2.6% in 2009. However, despite this improvement, which was made in a year, the need to work on this issue prevails.

The ratio of transactions completed through electronic channels in public services was 81.4%, which is higher than those of the past two years3. While the ratio of realizing those provided to citizens from the subject services in electronic environment was 74.1%, the level of realization in electronic environment for the services provided to the businesses was 88.1%. This indicator took place well above the 2010 target, which was determined as 26%. However, it should be noted when evaluating this situation that even though making calculations for all services transferred to electronic environment was projected in determining this target, only those provided in electronic environment and for which usage statistics were produced from the EU 20 basic public e-services were taken into consideration in the actual calculation. On the other hand, since different services were included in the calculation of the indicator by years, the data does not reveal the course of development.

While the satisfaction rates for the public services provided in electronic environment were 64.1% and 63.3% in 2007 and 2008, respectively, these ratios rose to 95% and 95.7% in 2009 and 2010. The satisfaction ratios that displayed a considerable difference compared to the data of the two previous years is observed to have been confirmed in 2010. The answers given to the question on whether or not the public services provided in electronic environment made the life easier resulted in the ratios to take place as 67.5%, 66.5%, 97.2%, and 96.7% by years, respectively. This verifies the high level of satisfaction from e-government services. These values do not constitute an index level as specified in the Measuring Document and they represent the ratio of satisfaction obtained from TURKSTAT Life Satisfaction Survey.

3 The services provided in electronic environment in Turkey from the EU - 20 Basic Public e-Services, the usage statistics about which could be reached, were taken as basis in calculating the 2010 value of indicator no 64 included in Table 3.1. The services that were included in the calculation were: 1. Income taxes, 2. Job search services, 3. Social security benefits (unemployment benefits and student grants), 4. Public libraries, 5. Corporate tax, 6. Value Added Tax, 7. Submission of data to statistical offices, 8. Customs declaration, 9. Public procurements.


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Box 3.4: Satisfaction from e-Government Services - Second Hand Vehicle Registration Example

The Life Satisfaction Survey conducted by TURKSTAT measures the satisfaction of citizens from e-government services. Based on the results of 2010 survey, the satisfaction ratio concerning e-government services took place as 95.7%. According to the results of the 9th e-Government Benchmark Measurement Survey carried out by the EU, the e-services of Turkey obtained the ratios of 80% and 100% in user experience and user satisfaction assessments, respectively.

On the other hand, satisfaction measurement studies are conducted related to the services provided by some public agencies. A survey applied to notaries concerning the registration of second hand vehicles constitutes an example to these studies. Answers were received from 963 of the 1,275 notaries determined for the survey and the ratio of participation in the survey took place as 61.7%. All notaries returned the forms on a provincial basis and 326 notaries from provinces and 627 notaries from districts participated in the survey.

According to the result of the survey, the ratio of people satisfied from the services received was 90% and the ratio of those partly satisfied was 6%. The progress achieved is revealed when this is compared with the satisfaction ratio determined as 23% in the results of the survey conducted in Ankara Police Department by the Prime Ministry Administrative Development Department in 2006.

The results of the survey reveal that there is a substantive link in statistical terms between satisfaction and the independent variables of income level, age, education, and gender. It was also determined that the dependency of the satisfaction level to the Internet usage frequency variable was statistically significant. It is seen that satisfaction decreases as the income level, Internet usage frequency, and education level increases and that the satisfaction ratio is relatively lower for women and young people. This result can be explained with the higher level of expectation of segments declaring low satisfaction from public services.

Source: i) Temür, Nuri, e-Government: Citizen Satisfaction in Public Services, Turkish Notaries Association Publications, Ankara, 2011., ii) Administrative Development Department ,Restructuring in Traffic Registration and Driver’s License Transactions, Ankara, 2006


Box 3.5: Use of Electronic Signature in the Public SectorThe electronic signature, which enables the validity, integrity, accessibility, and

incontestability of works and transactions completed in electronic environment, was started to be used in Turkey in 2004. Pursuant to the Electronic Signature Law no 5070, a secure electronic signature bears the same legal consequences and conclusive force as a signature placed by hand, electronic data properly created with electronic signature are considered as a deed, and these data are deemed as conclusive evidence unless proved otherwise. Public agencies have started to use electronic signature in both correspondences they create in electronic environment and services they provide to citizens and enterprises. 144,707 qualified signatures were created for public sector personnel by the TÜBİTAK (Scientific and technological Research Council of Turkey) BİLGEM (Center of Research for Advanced Technologies Informatics and Information Security) Public Certification Center as of May 13, 2011 (Figure 3.13). 120,304 of these certificates are active. 64,296 were created for the Ministry of Justice and 26,637 for the Ministry of Interior.

Figure 3.13: Number of Qualified Electronic Certificates Produced for Public Agencies

Source: TÜBİTAK BİLGEM Public Certification Center

(May)

,

,

,

,

,

,

,

,,

,

,,

,

,


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3.4 Savings from e-Government Applications

e-Government applications as an instrument of contemporary service provision for public agencies enable savings and cost efficiency in public expenditures. A methodology has not been determined and a measurement study has not been conducted concerning the return on e-government investments in Turkey. Nevertheless, public agencies that develop projects carry out independent studies regarding the return on their investments.

According to the studies conducted by agencies, personnel, labor, time, stationery, postal, transportation, communication costs are reduced or eliminated altogether with the restructuring of business processes, elimination of interim processes, and process acceleration, prevention of errors arising from the human factor, prevention of duplicated investments with the use of shared services and infrastructure, realization of information and document sharing in electronic environment, and carrying out of transactions completely in electronic environment. Savings obtained by some public agencies with e-government applications are provided below.

According to a study conducted by the Ministry of Justice, approximately 1.6 billion TL was saved with 23 separate applications of the National Judiciary Network Project (UYAP) from the start of the project until April 2011. Around 705 million TL of this saving was achieved as a result of the integration of UYAP system with MERNIS system. The total amount of appropriations reserved by central public agencies in Turkey for ICT investments for 2002-2011 period was 9.6 billion TL.

11.8 million TL savings were achieved in 2010 in stationery and transportation costs only by requesting three documents concerning Conditional Education Allowance and Conditional Health Allowance in electronic environment under the Social Assistance Information System implemented by the General Directorate of Social Assistance and Solidarity.

21.9 million TL that would have been paid by citizens was saved in one year by eliminating some of the forms only with the realization of second hand vehicle sales and purchases in electronic environment at notaries under the Vehicle Registration and Driver’s License Transactions Project being implemented by the General Directorate of Turkish National Police.

20 thousand trees were prevented from being cut by achieving a saving of approximately 1.27 billion printed papers in 2010 with the receipt of 38 different declarations / statements in electronic environment under the e-declaration service implemented by the Revenue Administration. In addition, 218.5 million TL was achieved in savings by recording 1.28 billion invoices in electronic environment from 2008 until May 2011 with the Electronic Invoice Recording System implemented during the 2008-2010 period and the e-invoice application, which started in November 2010.


Box 3.6: e-Government in Local AdministrationsA survey consisting of 43 questions was conducted in 2011 by the Ministry of Interior General

Directorate of Local Administrations with the aim of determining the ICT usage and current state of local administrations in Turkey in e-government service provision as well as local demands. 2,666 of the existing 2,950 municipalities and 81 special provincial administrations provided feedback for the survey. It was seen that 1,981 of the 2,666 municipalities participating in the survey had websites and 685 municipalities did not. It was also determined that all of the 81 special provincial administrations had websites. The ratio of local administrations with websites as assessed on population basis is 97%. According to the results of the survey, when municipalities were assessed on population basis, it was observed that one of the participation increasing transactions, such as online surveys, voting, interactive discussions, etc. was provided in the website of municipalities in regions where a segment of 87% lived (Figure 3.14).

An Interactive City Guide (tourism, transportation, activities, pharmacies on duty, map information, etc.) provides services over the website in 80% of municipalities by population.

While 36 municipalities and 70 special provincial administrations use electronic signature in their transactions and service provision, 73 municipalities and 2 special provincial administrations use mobile electronic signatures. Both electronic and mobile electronic signatures are used in 6 municipalities. 1 of the 103 municipalities using electronic and/or mobile electronic signature is a metropolitan municipality, 7 are provincial center municipalities, 16 are metropolitan district municipalities, 25 are district municipalities, and 54 are town municipalities. While electronic signature is used in 7 of the town municipalities, mobile electronic signature is used in 47 of these municipalities. Electronic signature is used in such transactions as debt inquiry and payment, business license application, zoning status application, marriage application, sanitation tax declaration, announcement and advertisement declaration, declaration of real estate, submission of proposals in tenders, application process stage inquiry, and current value inquiry. While Geographical Information System works have been completed in 3% of the municipalities, such works are still continuing in 14%, and no works are being performed in 83%. Digitalized archive data can be reached through both the Management Information System and the Geographical Information System in 154 municipalities (6%). 5% of municipalities and 54% of special provincial administrations use Vehicle Tracking Systems with GPS. On the other hand, only 7% of municipalities and 14% special provincial administrations conduct user satisfaction surveys for e-government services and projects.

Source: Ministry of Interior, General Directorate of Local Administrations,http://www.migm.gov.tr/Dokumanlar/e-Devlet(Yerel)UygulamalariAnketi.pdf

Figure 3.14: Applications to Increase Participation in Local Administrations, 2011

Municipality

Online survey

Online voting

Online interactive discussion

Other None

Special Provincial Administration

,


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KEY INDICATORS8 of the 18 indicators contained in the Measurement Document are the key

indicators determined to monitor e-government activities in the Information Society Strategy. These indicators are included under the strategic priorities of Citizen-Focused Service Transformation and Modernization in Public Administration. The values concerning these indicators are presented in Table 3.1.

Table 3.1: Progress in Key Indicators concerning e-Government

(Percentage)

Indicator. No KEY INDICATOR 2007

H2007

G2008

H2008

G2009

H2009

G2010

H2010

G

59 Ratio of services provided over electronic channels - - - - 45 - 60 -

60 EU 20 basic public e-services maturity level 70 69 100 - 100 - 100 91

64Ratio of transactions comple-ted through electronic chan-nels in public services

14 - 16 65.1 20 66.2 26 81.3

69 e-Services user satisfaction index level* - 64.1 - 63.3 60 95 70 95.7

70Ratio of electronic public ser-vices with fully online back office processes

- - - - 50 - 70 -

72Ratio of public procurements completed in electronic envi-ronment

- - - - - - 60 -

75Ratio of savings achieved in annual current public expen-ditures

- - - - - - 6 -

76Ratio of ICT projects comp-leted within budgetary limits and in time ***

- - - - - 24.2 90** 24.4

* The target value in this indicator is the user satisfaction index, which will consist of five components, namely, speed, accuracy, security, advantage of use, and access. However, the value given in the actual value section corresponds to a single ratio obtained from the Life Satisfaction Survey conducted by the TURKSTAT.** Even though this target value was provided as the 2011 target value in the Measurement Document, it was written as the 2010 target value in order to allow comparison.*** This indicator is calculated by taking into consideration the ratio of projects that are completed within their budget and the specified period from the e-government projects included in the investment program within a certain period. 41 e-government application projects included in the investment program during the 2007-2010 period, which were not in the nature of maintenance, were identified. 10 of these projects were completed within their budget and the specified period. The projects that are envisaged to be completed after 2010 were not taken into account in the calculation of the indicator.


INTERNATIONAL COMPARISONSThe 9th of the e-Government Measurement and Benchmarking Survey, which

has been conducted regularly by the EU since 2001, was conducted in 2010. The survey covers 27 EU member countries as well as 5 other countries (EU-27+) including Turkey, Croatia, Iceland, Norway, and Switzerland. The survey basically involves the measurement and benchmarking of e-government in 5 areas. These areas are;

1. “Full online availability” and “online sophistication” for 20 basic public e-services determined by the EU,

2. Life event measurement of services targeting citizens and enterprises and level of provision in electronic environment of all stages,

3. Common horizontal enablers and provision of back office applications in electronic environment,

4. Electronic procurement, and

5. Electronic user experience in services.

1. Full online availability and online sophistication of 20 basic public services:

• Turkey has caught a level higher than the EU- 27+ average, which is 89% and 82%, in terms of carrying services into the electronic environment (Figure 3.15), and

• A level above the EU- 27+ average, which is 91% and 90%, in terms of online sophistication of services (Figure 3.16).

Eight services targeting enterprises were provided at the sophistication level of 100% (EU-27+ average = 94%) and 12 services targeting citizens at the sophistication level of 85% (EU-27+ average = 87%).


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Figure 3.15: Online Availability of 20 Basic e-Services in EU-27+ Countries, 2010

Source: EU 9th e-Government Benchmark Measurement

Percentage

GreeceGCASCIceland

RomaniaSlovakiaCroatia

HungarySwitzerland

BulgariaLithuania

LuxembourgCzech Republic

Poland BelgiumEU-27+FranceTurkey

NorwayLatvia

EstoniaNetherlands

GermanyDenmark

FinlandSlovenia

SpainEngland

MaltaSweden

ItalyPortugal

IrelandAustria


Figure 3.16: Online Sophistication Scores of 20 Basic e-Services in EU-27+ Countries, 2010

Source: EU 9th e-Government Benchmark Measurement

Percentage

Greece

GCASC

Romania

Bulgaria

Croatia

Iceland

Hungary

Slovakia

Lithuania

Czech Republic

Switzerland

Luxembourg

Poland

EU-27+

Turkey

Norway

Belgium

France

Latvia

Denmark

Finland

Netherlands

Estonia

Slovenia

England

Spain

Italy

Germany

Sweden

Portugal

Malta

Ireland

Austria


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2. Life-event of services targeting citizens and enterprises and identifying of the level of provision in electronic environment of all stages:

Two services were selected as examples in this area and the services with regard to “starting up a company” were studied for businesses and those concerning “finding and losing a job” were examined for citizens. 21 stages with regard to “starting up a company” and 27 stages concerning “finding and losing a job” were explored in the survey. 13 of the “starting up a company” stages are applicable in Turkey. 1 of these can be done automatically, 5 can be completed in electronic environment from a single portal, and information can be obtained in electronic environment for 6. None of the transaction steps has been carried over to the electronic environment in one of these stages. In terms of “finding and losing a job”, on the other hand, 25 stages are applicable in Turkey. 2 of these can be done automatically, 11 can be completed in electronic environment from a single portal, and information can be obtained over the Internet for 4. None of the transaction steps have been carried over to the electronic environment in 8 of these stages.

While 19 of the 21 stages for “starting up a company” are applicable in Luxembourg, Ireland runs only 1 process. Information can be obtained or transactions can be completed in electronic environment about all of the stages that are applicable in Austria, Denmark, Estonia, Ireland, Norway, Sweden, and England. In other countries the need to obtain information or perform transactions offline still continues for the business starting process. User-oriented services are provided in Austria, Norway, Turkey, Spain, Slovenia, the Czech Republic, Denmark, Portugal, and Estonia. In these countries, portals with regard to starting a business contain such functions as customization, high level of interaction, automatic services and process monitoring within their structures besides e-payment and e-signature and thus facilitate the process of starting a business.

While all of the 27 stages concerning “finding and losing a job” are applicable in France, Luxembourg, and Hungary; Greece is the country running the least number of processes with 16 stages. These countries have employment portals. In these portals, the stages of looking for a job, obtaining information about the labor market, filling out curriculum vitae, and obtaining information about the unemployment benefits are generally more prominent. Even though the portals of Finland, Ireland, Spain, Malta, Portugal, and Austria are more user-oriented compared to other countries, their employment portals are quite distant from providing the service of “the transactions of finding and losing a job” in a way to cover all stages.


3. Common horizontal enablers and provision of back office applications in electronic environment:

The survey in this area was carried out in a way to include nine different elements These were; “authentic sources”, “electronic identity”, “electronic payment”, “open specifications”, “single sign-on”, “architectural guidebooks”, “catalogue of horizontal enablers ”, “secure e-delivery”, and “e-safe”. 6 of these (“authentic sources”, “electronic payment”, “open specifications”, “single sign-on”, “secure e-delivery”, and “e-safe”) are available and provide services in electronic environment in Turkey. While Austria, Denmark, Estonia, France, Germany, and Hungary have all the applications, at least six of them are available in 75% of the countries.

4. Electronic procurement:

Measurement and benchmarking survey concerning electronic procurement was conducted in a way to cover all stages from the needs analysis to contract management. Turkey ranked last among 32 countries subjected to assessment in terms of electronic procurement practices. Nonetheless, it was also determined with respect to the stages put in practice by Turkey that the errors were considerably eliminated and transparency was increased in the electronic procurement practices and processes. Turkey will make progress in this field and the benchmarking among countries when the processes regarding electronic tenders of the Electronic Public Procurement Platform (EKAP) carried out by the Public Procurement Agency are put in practice in 2011.4

5. User experience:

With 83%, Turkey achieved a rate higher than the EU-27+ average, which was 80%, in “user experience” measurements consisting of the “transparency of service provision”, “protection of privacy”, “ease of use”, and “user satisfaction”.

The translation of the data concerning Turkey in the EU 9th e-Government Measurement and Benchmarking Survey has been provided in Annex-11.

4 The first electronic procurement practice in Turkey was realized on March 7, 2011 by the Medical Faculty Hospital of Hacettepe University following the period during which the EU 9th e-Government Measurement and Benchmarking Survey was conducted.


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Table 3.2: 20 Basic Public Services in the EU and their Provision in Turkey

Seq PUBLIC SERVICE DEFINITION SERVICES PROVIDED IN TURKEY

SERVICES TO CITIZENS

1 Income taxes Declaration, accrual, and payment transactions can be done online using e-Declaration.

2 Job searchPublic and private sector job and employee search transactions as well as job applications can be done from the website of the Turkish Employment Agency.

3

Social security benefits- Unemployment benefits- Child allowances- Medical costs- Student grants

- Online applications can be done for unemployment benefits from the website of the Turkish Employment Agency.

- There is no website that directly provides information about family and child allowances and where the relevant transactions can be completed.

- Transactions related to medical costs can be done online using the applications of the Social Security Administration.

- Student grant, credit and hostel applications can be completed online and information related to the results and debt status can be accessed from the website of the General Directorate of Higher Education Credit and Hostels Institution.

4 Personal documents (passports and driving licenses)

Information related to the subject can be provided, online appointment application can be made from a single point for passports, and applications for driving licenses can be completed online in some of the 81 provinces.

5 Vehicle registration Sales, transfer, and registration transactions for second hand vehicles are carried out by Notaries with personal applications made to Notaries. Transactions are fully completed in electronic environment by Notaries.

6 Building license application Cannot be made yet.

7 Declaration to the police Can be done online from the websites of the Security General Directorate (Turkish National Police) and Provincial Security Directorates.

8 Public libraries

Catalogue browsing and book reservation transactions can be completed from the website of the National Library.Collective catalogue browsing service has started to be provided under the Integrated e-Library System. Bibliographic record browsing can be done in around 1,132 automated libraries from the website of the General Directorate of Libraries and Publications.

9 Certificates (birth and marriage) Application to start marriage transactions can be made online in some Municipalities.

10 Enrolment in higher education Electronic pre-registration transactions can be completed online by some universities.

11 Announcement of moving Change of address transaction can be completed over the website of the General Directorate of Population and Citizenship Affairs by using electronic signature.

12 Health related services

There are hospitals that provide online information and appointment service. The Central Hospital Appointment System being implemented by the Ministry of Health is at the pilot application stage in 30 provinces as of the first quarter of 2011.


Seq PUBLIC SERVICE DEFINITION SERVICES PROVIDED IN TURKEY

SERVICES TO CITIZENS

1 Social contribution for employeesStatements can be sent over the Internet, debt, accrual, and collection information can be accessed and payments can be made online.

2 Corporate tax Statement, accrual, and payment transactions can be done online within the scope of e-Declaration.

3 Value added tax Statement, accrual, and payment transactions can be done online within the scope of e-Declaration.

4 Registration of a new company

The Central Registration System (MERSIS) that enables the registration of new companies, amendments, and trade registry transactions to be completed online, has been completed and pilot implementation has started in Mersin Trade Registry Office. Works to ensure this system is used in all trade registry offices are continuing.

5 Submission of data to the statistics unit

User accounts can be opened for enterprises that can enter data over the Internet. Data concerning some of the surveys conducted for enterprises can be received in electronic environment and the works for spreading the application are continuing.

6 Customs declarations Declarations can be submitted in electronic environment.

7 Permits related to the environment Transactions concerning environmental permits and license applications can be done in electronic environment.

8 Public procurements

The Electronic Public Procurement Platform (EKAP) has been created. The first electronic procurement was done on March 7, 2011. The Public Procurement Bulletin is being published in electronic environment.


The ICT sector, which has an increasing share in the GDP of developed countries, presents a strategic importance with the increase of productivity introduced by it to the economy in general, its innovative structure with high added value, low fixed capital investment and intermediate goods import requirement. The information technology sector and particularly the field of software and services in it, plays a key role in the process of Turkey’s transformation into an information society. Therefore, any advances to be made in the sector will radically affect this transformation process.

Having reached 24.88 billion US dollars as of the end of 2008, the Turkish ICT sector experienced a contraction during the global crisis, however grew by 4.55% in 2010 and reached 25.05 billion US dollars. The share of the information technologies sector, which continued to grow during the crisis period as well, reached 30% for the first time (Table 4.1).

4 INFORMATIONTECHNOLOGIES


Table 4.1: Market Indicators for the ICT Sector

2007 2008 2009 2010

Market size of the ICT sector (billion US Dollars)5 22.24 24.88 23.96 25.05-Communication Technologies6 16.31 18.92 17.30 17.48- Information Technologies 5.93 5.96 6.66 7.57

-Hardware 4.80 4.72 5.44 6.08-Software 0.49 0.52 0.51 0.58-Services 0.64 0.72 0.71 0.91

Market growth of the ICT sector (percentage) - 11.87 -3.70 4.55-Communication Technologies - 16.00 -8.56 1.04-Information Technologies - 0.51 11.74 13.66

-Hardware - -1.69 13.24 10.53-Software - 5.77 -1.96 12.07-Services - 11.11 -1.41 21.98

GDP (billion US Dollars) 648.8 742.1 614.6 736.7Share of the ICT sector in GDP (percentage) 3.43 3.35 3.90 3.40

-Communication Technologies 2.51 2.55 2.82 2.37-Information Technologies 0.91 0.80 1.08 1.03

-Hardware 0.74 0.64 0.89 0.83-Software 0.08 0.07 0.08 0.08-Services 0.10 0.10 0.12 0.12

Source: The Information and Communication Technologies Authority and IDC data were taken as basis for market sizes and the SPO data were used for the GDP.

Statistics related to companies established and closed started to be presented within the scope of the Official Statistics Program by the Union of Chambers and Commodity Exchanges of Turkey (TOBB) in January 2010. In 2010, three fourth of the companies with the activity codes covered under the “J- Information and Communication” heading according to the NACE Rev. 2 classification were established in İstanbul (Table 4.2). While the ratio of closed companies was one in every four established companies in general, this ratio was seen to be above one in six companies in the field of information and communication.

5 The exchange rate of US dollar has been taken as 1.30 TL, 1.29 TL, 1.55 TL, and 1.50 TL respectively for 2007, 2008, 2009, and 2010 in the calculation of market sizes.

6 The data concerning communication technologies were retrospectively updated in line with the works carried out by the Information and Communication Technologies Authority to improve the data quality.

7 IDC data were used during the preparation works for the Information Society Strategy. Therefore, in order for the target values to be comparable with the actual values, IDC data were used with regard to the market sizes concerning information technologies.


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Table 4.2: Number of Companies Established and Closed in the Field of ICT, 2010

Provinces Number of Established Companies Number of Closed Companies

İstanbul 1,263 193

Ankara 199 40

İzmir 53 12

Other Provinces 232 42

Total 1,747 287

Source: TOBB

The number of enterprises operating in the field of ICT also displays an increase by years. While the total number of enterprises operating in the field of ICT as of 2006 was 10,431, this figure rose to 12,156 in 2007 and 13,320 in 2008 (Table 4.3). 65 and 59 of these enterprises were under the control of foreign companies in 2006 and 2007, respectively, and the data concerning 2008 has not been published.

Box 4.1: Annual Industry and Service StatisticsThe Annual Industry and Service Statistics Survey, which is conducted on a regular ba-

sis, was benefited from in a major part of the data presented with regard to the ICT sector. In compiling the Annual Industry and Service Statistics, the full count method was used in enterprises with 20 and more (20+) employees and the sampling method was applied in those with 1-19 employees. The NACE Rev. 1.1 was used in the survey for activity classifica-tion. This list has been given in ANNEX-5 and the NACE Rev. 1.1 list concerning the ICT sector definition has been provided in ANNEX-6. In the coming years the NACE Rev. 2 will be used in the Annual Industry and Service Sectors Survey as the economic activity classification. This list has been given in ANNEX-7 and the NACE Rev. 2 list concerning the ICT sector definition has been provided in ANNEX-8.


Table 4.3: Number of Enterprises Operating in the Field of ICT

Group Size 2006 2007 2008

1-19 9,615 11,422 12,589

20-49 503 408 405

50-249 257 269 263

250+ 56 57 63

Total 10,431 12,156 13,320

Source: TURKSTAT Annual Industry and Service Statistics Survey

The hardware manufacturing and added value data concerning the ICT sector are acquired by TURKSTAT from the results of the Annual Industry and Service Statistics Survey and cover the 2003 – 2008 period (Table 4.4). These data are collected according to the NACE Rev 1.1 classification and they are not limited to information technology hardware. Therefore, even though these data are important to show structural economic fluctuations by years, they are not comparable with the market indicators for information technologies.

Table 4.4: Hardware Manufacturing and Added Value of the ICT Sector

(Million TL)

2003 2004 2005 2006 2007 2008

Manufacturing 24,070 32,537 32,651 41,524 40,100 42,829

Added Value 9,123 11,602 12,423 13,642 15,066 16,650



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Box 4.2: Indicators Presented for the First Time in the Information Technologies Section

Various indicators were defined in the Measurement Document in order to monitor the numbers, sizes, export and R&D activities of enterprises operating in the field of information technologies. These indicators planned to be obtained from the Ministry of Industry and Trade were not included in the 2009 and 2010 Information Society Statistics publications since they lacked consistency because they were compiled from various sources over the years and they provided information concerning a very limited segment operating in the field of information technologies. The data obtained from TURKSTAT and TOBB were used in this publication for 6 of these 8 indicators. Explanations concerning these indicators have been provided below.

- Number of enterprises operating in the field of information technologies: This indicator was compiled from the TURKSTAT Annual Industry and Service Statistics Survey according to the NACE Rev. 1.1 list regarding the ICT sector definition.

- Number of domestic enterprises operating in the field of information technologies: The numbers of enterprises that are under the control of foreign companies were provided instead of the number of domestic enterprise. The statistics about the enterprises that are under the control of foreign companies were obtained from the 2006 and 2007 Annual Industry and Service Statistics Surveys according to the NACE Rev. 1.1 list regarding the ICT sector definition. These data were compiled from the information about 55,354 enterprises in 2006 and 53,008 enterprises in 2007 contained in the full count section.

- Distribution of enterprises operating in the field of information technologies according to the number of employees: This indicator was compiled from the TURKSTAT Annual Industry and Service Statistics Survey according to the NACE Rev. 1.1 list regarding the ICT sector definition.

- Number of new enterprises established in the field of information technologies: Statistics concerning the companies established and closed were provided by TOBB under the Official Statistics Program. They cover the activity codes listed under the “J- Information and Communication” heading according to the NACE Rev. 2 list.

- Number of enterprises performing R&D activities in the information technologies sector: Even though it does not directly corresponds to this indicator, the indicator related to the ratio of enterprises operating in the ICT sector within those performing R&D activities was included in order to be able to assess the developing prevalence of R&D activities in the ICT sector depending on the variation in the number of the firms performing R&D activities in the economy in general. The values for 2009, which were obtained from the TURKSTAT Research and Development Activities Survey, cover the activity codes according to the NACE Rev. 2 List concerning the ICT Sector Definition and those for other years include the codes based on the NACE Rev. 1.1 List.

- Number and ratio of enterprises performing exports in the field of information technologies: This indicator was provided by TURKSTAT according to the NACE Rev. 1.1 list regarding the ICT sector definition.


Following its contraction in 2009, the exports and imports of the ICT sector had a double-digit growth. However, as a natural consequence of the smaller contraction of imports compared to exports in 2009 and higher growth ratio in 2010, the import coverage rate of exports is below the levels of the period prior to the global crisis (Table 4.5). These data obtained from the Undersecretariat of Foreign Trade have been prepared by taking the harmonized system ICT products list presented in ANNEX-9 as basis.

Table 4.5: Hardware Foreign Trade Figures of the ICT Sector

2007 2008 2009 2010

Exports (Million US Dollars) 616.9 642.4 467.8 533.9

Export Growth (percent) - 4.6 -27.2 14.1

Imports (Million US Dollars) 5,192.6 5,027.7 4,416.5 5,144.1

Import Growth (percent) - -2.7 -12.2 16.5

Balance of Trade (Million US Dollars) -4,575.7 -4,385 -3,948 -4,608

The Import Coverage Rate of Exports (percent) 11.9 12.8 10.6 10.4

Source: Undersecretariat of Foreign Trade

The number enterprises performing exports from those operating in the ICT sector continue to be at close levels by years (Figure 4.1). When the number of enterprises operating in the ICT sector is taken into consideration, it is seen that 7.5% of the enterprises exported in 2007 and 6% exported in 2008.


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The increasing use of ICT in every field of the economic and social life has increased the need for human resources that would enable the generation and efficient use of products and services based on these technologies. The training of such human resources is critically important in terms of the development of both the domestic ICT sector and other sectors that use these technologies as input as well as increasing the employment and the competitiveness of the economy.

Employment indicators of the ICT sector can be seen from Table 4.6. With respect to employment in the ICT sector as a whole, while 145,227 people were employed in 2003, this figure reached 174,367 people in 2008. The ratio of R&D personnel increased by years and reached 5.5% as of 2008 from 1.7% in 2003. The continuation of this upward trend is considerably important for the firms operating in the sector to increase their competitiveness and obtain a bigger share from the global markets.

Figure 4.1: Number of Enterprises Performing Exports from those Operating in the ICT Sector

Source: TURKSTAT


Table 4.6: Employment in the ICT Sector

2003 2004 2005 2006 2007 2008

Employment in the ICT sector 145,227 151,557 165,817 160,644 162,392 174,367

Ratio of R&D employment in the ICT sector (percent) 1.7 1.9 2.7 5.2 4.0 5.5

Ratio of ICT employment in total employment (percent) 2.2 2.0 1.9 1.7 1.7 1.7


Parallel with the increase observed in the number of R&D employees in the ICT sector, the ratio of enterprises performing R&D activities from those operating in the ICT sector is also increasing by years (Figure 4.2). This ratio was obtained from the TURKSTAT Research and Development Activities Survey. The values for 2009 cover the activity codes according to the NACE Rev. 2 List concerning the ICT Sector Definition and those for other years include the codes based on the NACE Rev. 1.1 List. It is considered that this change in the activity code classification defining the ICT sector had an impact on the decline observed in 2009.

Figure 4.2: Ratio of Enterprises Performing R&D Activities from those Operating in the ICT Sector

Source: TURKSTAT Research and Development Activities Survey

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Box 4.3: Narrow and Broad Definitions of ICT EmploymentThe increasing usage of ICT in various sectors also causes uncertainties in the definition

of the ICT employment. OECD defines ICT users under three groups. The first group covers the specialists that develop, manage, and maintain ICT systems, the second group includes advanced users, who use special ICT software tools in their sector of employment, and the third group covers basic users, who use simple ICT tools such as office software in their daily business lives. OECD defines the employment concerning the ICT employees covered in the first group based on the narrow definition and the employment related to those included in the first, second, and third groups based on the broad definition as ICT employment. OECD has taken the ISCO-88 (International Standard Classification of Occupations) of the International Labor Organization as basis in ICT employment statistics according to narrow and broad definitions (Table 4.7). The occupations shown in bold letters in Table 4.7 indicate the ICT users covered in the first group and other occupations show the ICT users in second and third groups.

Table 4.7: Narrow and Broad Definitions of ICT Employment according to ISCO-88

ISCO-88 Code Definition121 Directors and chief executives122 Production and operations managers123 Other specialist managers211 Physicists, chemists, and related professionals212 Mathematicians, statisticians, and related professionals213 Computing professionals214 Architects, engineers, and related professionals 241 Business professionals242 Legal professionals243 Archivists, librarians, and related information professionals312 Computer associate professionals313 Optical and electronic equipment operators341 Finance and sales associate professionals342 Business services agents and trade brokers343 Administrative associate professionals411 Secretaries and keyboard-operating clerks412 Numerical clerks724 Electrical and electronic equipment mechanics and fitters


Nevertheless, while the ratio of ICT employment within total employment was 2.2% in 2003, it dropped back to 1.7% in 2008. Besides the employment opportunities directly created by it, ICT also increases the demand for the people, who have the skills to use these technologies in the economy in general. The details of employment related to ICT, which represents ICT specialists and users benefiting from ICT in their activities, have been given in Box 4.3. The ratio of ICT related employment within total employment is around the level of 10 – 11% (Figure 4.3).

Figure 4.3: ICT Related Employment within Total Employment


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Box 4.4: Project for Training Qualified ICT Employees

The Qualified ICT Personnel Training Project was started in 2008 by the Turkish Employment Agency (ISKUR) within the scope of the “Training a Qualified Labor Force” action no 89 included in the Information Society Strategy Action Plan. The purpose of the project is to train university graduates in certain specialty areas of ICT and enable them to obtain the certificates of international ICT firms (Microsoft, Cisco, Oracle, etc.) with the aim of reducing the labor force deficit within the ICT sector of Turkey and directing the employment towards the ICT sector, which has high added value. Within the scope of this project;

• Primarily, works to determine the qualified labor force needed in the ICT sector of Turkey were carried out. With this aim, the areas of specialty currently required and those to be needed in the coming period were determined and a projection study was carried out regarding the number of specialists to be needed in these areas in the short and medium term.

• The institutions providing education in the designated specialty areas and the contents of such education were identified.

• The scope of the training to be given in each area of specialty was defined.

• The criteria that would constitute the basis for the selection of the candidates to be trained in the designated areas of specialty were determined.

• Activities were carried out to inform particularly the university graduates, who are not employed and who constitute the target segment, and students, who are close to their graduation, with regard to the program being carried out.

Training applications are received through the channel of the Provincial Directorates of ISKUR in the provinces where the training will be provided. Those approved to be eligible are directed by ISKUR to the relevant training course. In order to ensure the evaluation of eligibility for the certificate training program, candidates are subjected to tests concerning their level of English and training programs. The candidates to participate in the course are selected by the representatives of the service provider organization and ISKUR from among those passing these examinations. The costs of the training courses provided within the scope of the program and the fee for the examination, which should be taken by the trainees to obtain the internationally valid ICT certificate at the end of the training, are met by ISKUR. In addition 15 TL (for 2011) is paid to the trainees for their “obligatory expenses” for each day of the course they attend. Furthermore, the “Occupational Accidents and Professional Diseases Insurance” and “General Health Insurance” premiums of the trainees are paid by ISKUR during the period in which they attend the course. 3,195 persons to be selected from among those with at least two years of higher education degree are planned to be trained in the designated specialty areas in the provinces of İstanbul, Ankara, Izmir, Bursa, Adana, Gaziantep, Konya, Kayseri, Malatya, and Denizli during the first stage of the program. As of May 2011, 555 persons are attending these training courses.


KEY INDICATORSThe target in the Information Society Strategy is to ensure that the sector

gains experience, develops reference, and strengthens its financial structure in the domestic market, which will grow as a result of many planned information society applications and primarily e-government practices. The need to expand the public – private partnership in meeting the needs of the public agencies and to make the necessary regulations related to information technology procurements are critically important in reaching this objective. On the other hand, claims that privileges given to certain organizations with the legislation distorted competition continue to be an issue of concern.

A total of 8 key indicators have been determined under the information technologies section of the Strategy in order to be able to monitor the level of transformation into an information society (Table 4.8). Figures related to exports could not have been obtained from these indicators. When the other indicators are considered, it is observed that the hardware market remained well above the targeted values and the packaged software and services market remained below the set targets even though the services market displayed a notable improvement. Reaching 7.57 billion dollars as of 2010, the size of the information technologies market, has exceeded 7.42 billion dollars, which constitutes the sum of the targets set separately for hardware, package software, and services in 2010. However, the share of the information technologies sector within the GDP was 1.03% as of 2010, which is below the ratio of 1.87% targeted for 2010. The change in the GDP calculation method during the period of the Strategy is considered to have been influential in this result.


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Table 4.8: Progress in Key Indicators concerning Information Technologies

Indicator No KEY INDICATOR 2007

T2007

A2008

T2008

A2009

T2009

A2010

T2010

A

90

Domestic Market Size of Packaged Software (million US $)

545 489 684 515 849 511 1,042 584

90Domestic Market Size of Services (million US $)

747 639 906 720 1,086 709 1,291 909

90

Domestic Market Size of Information Technologies Hardware (million US $)

2,688 4,798 3,306 4,726 4,077 5,440 5,093 6,077

92Size of Packaged Software Exports (million US $)

42 - 59 - 82 - 115 -

92Size of Services Exports (Million US $)

56 - 78 - 110 - 154 -

92

Size of Information Technologies Hardware Exports (million US $)

13 - 16 - 20 - 24 -

100

Share of the Information Technologies sector within GDP (percentage)

1.2 0.92 1.4 0.81 1.6 1.08 1.87 1.03

-

Ratio of Software and Service Exports in the Software and Service Market (percentage)

7.6 - 8.6 - 9.9 - 11.53 -

T: Target Value, A: Actual Value

INTERNATIONAL COMPARISONSThe global economic crisis experienced in 2008 adversely affected the ICT sector

as well and caused the global ICT sector market to contract by 3% in 2009 according to the data of the World Information Technology and Services Alliance (WITSA). According to the statistics of the World Trade Organization, the global trade declined 12% in 2009. This indicates that the share of ICT within the total global trade has


increased. According to the European Information Technology Observatory (EITO) data, it is seen that the USA ranked first with 702.6 billion Euros in 2009 in terms of the market size of the ICT sector and her closest follower Japan ranked second with a market size of 236.4 billion Euros. Based on the estimations of EITO, the ICT market of China is expected to catch that of Japan by the end of 2011 with an estimated market size of 228.5 billion Euros (Figure 4.4).

Following the global crisis, the ICT sector in Turkey also shrank by 3.7% parallel with the contraction experienced in the world. However, in contrast with the other EU countries, the IT hardware expenditures increased by 13.2% in Turkey (Figure 4.5).

Figure 4.4: Market Size of the ICT Sector (Largest six markets)

Source: EITO Report Including Consumer Electronics, 2010

Note: The data for 2011 are estimates.

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France England Germany China Japan USA


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The shares of the information technologies sector and the telecommunications sector in developed countries are close to each other. The ratio of the information technologies market in the total ICT market in Turkey, which remained around 25% during the past years, rose to 30% in 2010. In spite of the increase took place in the information technologies market during the period following the crisis, the ratio of the information technologies market in the total ICT market in Turkey remains at quite a low level compared to developed countries (Figure 4.6).

Figure 4.5: Market Size of the ICT Sector (Selected countries)


Not: The data for 2011 are estimates.

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The ICT sector has a significant share in terms of employment in developed countries. 16 million people were employed in the ICT sector in OECD countries in 2008. This figure corresponds to 6% of the employment in the business world in the OECD countries. In many OECD countries excluding the Eastern European Countries, the employment related to ICT constitutes approximately 20% of the total employment (Figure 4.7). During the global economic crisis period, the employment in this sector shrank as well parallel with the contraction in the ICT hardware market and whereas the employment in the ICT service sector remained unchanged.

ICT specialists constituted 3 – 4% of the total employment in many OECD countries in 2009. This ratio was below 2% in Turkey (Figure 4.8).

Figure 4.6: Market Size of the ICT Sector by Segments, 2009


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Figure 4.7: Percentage of ICT Related Employment (OECD broad definition) within Total Employment

Figure 4.8: Percentage of ICT Specialists’ (OECD narrow definition) Employment within Total Employment

Source: OECD, IT Outlook 2010

Source: OECD, IT Outlook 2010

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Provision of fast, secure, continuous, good quality and affordable communication services that enable efficient handling of the relations between economic and social actors is one of the critical factors that would promote the transformation into an information society. To serve this purpose, actions aiming to increase competition in the electronic communication sector and to spread broadband communication infrastructures have been included in the Information Society Strategy.

Box 5.1: Turkish Telecommunications Sector

The incumbent operator of the telecommunications sector is Türk Telekom. The legal monopoly of Türk Telekom in the field of fixed line telecommunication services ended in 2004 and the sector was opened to full competition. 55% of the public shares in Türk Telekom were privatized in 2005. 15% of these shares were offered to public and 30% belong to the Undersecretariat of Treasury.

Information and Communication Technologies Authority (ICTA) is the regulatory authority of the telecommunications sector. As of May 2011, a total of 497 operators were authorized by ICTA to operate in such areas as fixed telephone services, infrastructure services, Internet service provision, etc.

Mobile services were started to be provided in Turkey in 1994. Currently three operators, namely Turkcell, Vodafone, and Avea, are operating in the field of mobile communication.

The telecommunications sector grew at an average rate of 2.4% between 2007 and 2010 and reached 17.48 billion US Dollars in 2010. Approximately 53% of this figure arose from mobile services, while the remaining 47% originated from other telecommunication services.

5 ELECTRONICCOMMUNICATIONS


The number of fixed line telephone subscribers has been gradually decreasing in Turkey (Figure 5.1). The rapid increase in the mobile telephone usage in a way to cause mobile telephones to replace fixed line telephones over the recent years and the all directions tariff packages offered to consumers by mobile network operators have had a considerable influence on this rapid drop. Number of mobile telephone subscribers increased on a regular basis until 2008 but displayed some decline in 2009 and 2010. This drop took place as a consequence of some users cancelling their secondary lines as a result of the activation of the number portability practice and the above mentioned developments concerning the tariffs.

The number of cable TV subscribers has been at the level of 1.2 – 1.4 million for a long time. The consumers preferring the satellite platform, which is an alternative for the cable TV service and which offers a higher number of channels and the limited prevalence of cable TV infrastructure have been influential on this stagnant level of the number of subscribers.

The fixed line telephone subscriber penetration rate dropped down from 27% in 2002 to 22% at the end of 2010 (Figure 5.2). The mobile phone subscriber penetration rate reached to 92.1% in 2008 with a rapid development; however, it dropped back to 83.9% as of the end of 2010. The increase in the broadband subscriber penetration rate, which was 11.6% in 2010, is continuing to go up.

Figure 5.1: Number of Subscribers in Telecommunication Services

Source: Information and Communication Technologies Authority

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SDue to developing electronic services, the demand for broadband access services is growing rapidly. As a natural consequence of this, the revenues obtained from data services provided over both fixed and mobile networks are rapidly increasing as well (Figure 5.3). While the revenues obtained from fixed data services increased by 16% in 2010 compared to the previous year, the same ratio took place as 33.3% for mobile data services. As seen in Figure 5.3, the revenues under “other”, which covers the revenues of alternative operators, grew at an average ratio of 35% between 2006 and 2010.

Table 5.1 shows the number of subscribers according to broadband access technologies used in Turkey by years. The technology most widely used for broadband access is DSL. On the other hand, the use of 3G mobile broadband technology has also increased rapidly since 2009, when these services were started to be provided. In addition, the use of fiber broadband access services displayed a rapid growth in 2010. However, the number of subscribers using this technology still remains quite low.

Figure 5.2: Fixed Line, Mobile Telephone, and Broadband Subscriber Penetration


Note: Subscriber penetrations were calculated with the population data obtained from TURKSTAT. The broadband subscriber penetration data for 2009 and 2010 were calculated with the inclusion of 3G mobile broadband subscribers.

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MobileMobile

Fixed

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Cable TV

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27.0 26.8 26.7 26.0 25.8 24.9 24.5 22.8 22.033.3 39.5 48.5 59.7 72.2 84.9 92.1 86.6 83.90.05 0.14 0.7 2 3.8 6.5 8.4 9.4 11.61.4 1.4 1.5 1.6 1.5 1.5 1.5 1.7 1.9


Figure 5.3: Sub-Market Sizes in the Telecommunications Sector


Note: Mobile data revenues comprise of the revenues related to mobile data (narrow band + broadband) services and SMS and MMS services. The revenues given under the “other” section, on the other hand, cover the revenues related to the services excluding voice and data services (infrastructure, cable TV – Internet, satellite communication services, etc.) and other services provided over fixed and mobile networks. The data were retrospectively updated in line with the works carried out by the Infor-mation and Communication Technologies Authority to improve the data quality.

Table 5.1: Number of Broadband Subscribers with respect to Access Technologies

Years Number of

Subscribers and Market Share

Access Technology

DSL Cable Fiber Wireless Other

2007Number of Subscribers (million) 4.70 0.04 0 0 0.02

Market Share (%) 0.84 0 0 0.42

2008Number of Subscribers (million) 5.67 0.07 0 0 0.02

Market Share (%) 1.21 0 0 0.35

2009Number of Subscribers (million) 6.22 0.15 0 0.4 0.02

Market Share (%) 2.21 0 5.89 0.29

2010Number of Subscribers (million) 6.64 0.27 0.15 1.45 0.05

Market Share (%) 3.15 1.75 16.95 0.58


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A considerable growth was achieved in the investments made for the mobile network infrastructure in 2009 (Figure 5.4). The investments made by the mobile operators for 3G communication infrastructure were quite influential in this growth. With the impact of the decrease in the investments made in 2010, the total annual investment in the mobile communication sector dropped by 41% compared to the previous year.

Figure 5.4: Infrastructure Investments in the Telecommunications Sector


Note: Investment data cover the investment expenditures of the incumbent operator and 3 mobile operators.

A considerable increase was observed in the tariff baskets concerning fixed telep-hone services in 2010 compared to 2009 (Figure 5.5). This increase arose partly from the rise of the value of the Turkish Lira against the US Dollar compared to the previous year and partly from the cancellation of the discounts in the fixed telephone tariffs at the beginning of 2010. The price of the basket concerning mobile services dropped by 21% in 2010 compared to the previous year. This situation indicates that the com-petition among mobile operators is reflected on service prices besides the variety of tariffs and service quality.

Fixed Mobile

Billi

on T

L

.

.

. .. .

.

.


Figure 5.5: Telecommunication Tariff Baskets (Annual) - Household Use


The share of the operators other than the incumbent operator in the broadband market grew considerably compared to 2009 and reached 24.4% in 2010 (Figure 5.6). The main reason for this growth was the rapid increase in the use of mobile broadband services, which were started to be provided to users within 2009. In addition, the increase in the use of fiber broadband access and cable Internet services in 2010 was also influential in the subject growth, even though to a small extent. The impact of the increase in the number of the subscribers of alternative operators that provide DSL services over the infrastructure of the incumbent operator was quite small. Even though the number of the subscribers of alternative DSL operators rose by around 23% in 2010 compared to the previous year, the share of these operators in the broadband market did not grow.

Domestic Composite Mobile

US

Dolla

rs


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Figure 5.6: Level of Competition in Broadband Access - Market Shares by Number of Subscribers


KEY INDICATORS9 indicators have been determined in the Measurement Document in order to

measure the developments achieved in electronic communication infrastructure and services with the Information Society Strategy and 3 of these are key indicators (Table 5.2).

The population covered by fixed broadband access infrastructures has reached 90% of the total population and the target values have been approached to a large extent. The data concerning the population covered by mobile access infrastructures, on the other hand, do not exist.

Targets were reached in all years in terms of the cost of broadband access services. One of the important reasons for this development is the incumbent operator’s concentration on broadband access services, which constitutes an alternative to its biggest income item, fixed line telephony revenues, and the share of which in the communication services is continuously increasing. On the other hand, cable Internet services and mobile broadband services, the use of which is increasing rapidly, have also increased competition in the broadband access market and created a significant pressure for the decrease in prices.

0

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90

100

Incumbent operatorAlternative operators

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Table 5.2: Progress in Key Indicators concerning Electronic Communication

Indicator KEY INDICATOR 2007T

2007A

2008T

2008A

2009T

2009A

2010T

2010A

105

Ratio of the population covered by broadband access infrastructures within the total population (percentage)

82 - 86 ≈ 90* 90 ≈ 90* 93 ≈ 90*

107

Ratio of the cost of broadband access to the end-user within the income per capita (percentage)

4.3 - 3.5 2.6 2.8 2.5 2.2 2.2

109

Ranking of the competitiveness of the sector among the EU countries

- - - 20/20 - 19/22 1-5** -

T: Target Value, A: Actual Value* Data obtained from the Ministry of Transport and Communications.** Even though these target values were given as 2011 target values in the Measurement Document, they were written as 2010 target values to enable comparison.

Even though new operators were authorized for many services during the liberalization process, which accelerated after the monopoly rights of the incumbent operator ended in 2004 in electronic communication sector, the market shares of these operators and the level of competition in the market are still low. According to the “Regulatory Scorecard” study performed by the European Competitive Telecommunication Association, which examines the competition level in the electronic communication sector, Turkey came the last among 20 countries in 2008 and ranked 19th among 22 countries in 2009.

INTERNATIONAL COMPARISONSIn spite of the developments achieved in the telecommunications sector, the

broadband subscriber penetration rate of Turkey, which was 11.6% in 2010, remains well below the EU-27 average, which was around 30% as of the end of 2009. One of the main reasons for this is the competition has not developed enough in the sector yet. Even though high growth ratios took place in the numbers of mobile and fiber broadband subscribers within 2010, the prevalence of broadband usage has not reached the desired level yet.

Another reason for the low broadband user penetration compared to the EU is that innovative electronic services and contents, which are provided over these


5.EL

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S

infrastructures and which would feed the broadband access demand of users, have not been sufficiently developed in Turkey.

Figure 5.7 provides information concerning the broadband subscriber penetration for EU-27 and Turkey as of the end of 2009. As seen in the subject figure, Turkey remains behind the EU-27 countries in terms of broadband subscriber penetration.

Figure 5.8 shows the ratio of the population covered by the DSL infrastructure within the total population in EU-27 and Turkey. This ratio is 90% for Turkey and 93% for EU-27. It is seen that Turkey has converged with the EU-27 average in terms of this indicator.

Our country ranks the last with Mexico compared with the OECD countries in terms of broadband subscriber penetration. The average broadband subscriber penetration of OECD was 57.2% as of June 2010 (Figure 5.9). With a ratio of 129.4, South Korea is the country with the highest broadband subscriber penetration among the OECD countries. South Korea and Japan occupy the first two places in terms of the subscriber penetration concerning fiber broadband services.

The average data downloading speed for broadband access services is 31.7 Mbps in the OECD countries. This value is 17 Mbps for Turkey and Turkey is above 7 countries in the ranking among the OECD countries (Figure 5.10).

Even though Turkey remains prominently behind the OECD averages in terms of broadband subscriber penetration and average data downloading speed, as seen in Figure 5.11, Turkey is quite close to the OECD average in terms of the average broadband access cost per Mbps. The subject cost is 4.8 US Dollars for Turkey and 4.2 US Dollars for OECD based on the purchasing power parity.

Even though the key indicators related to the electronic communication sector point out to the fact that important developments have been experienced since the date on which the Strategy was started to be implemented, Turkey lags behind the EU and the OECD countries. The regulations in the electronic communication sector are required to be implemented more efficiently and policies that would support the development of the broadband access infrastructure should be put into practice in order to reduce the gap between Turkey and the EU as well as the OECD countries. Developing electronic services and contents that would feed demand of users for electronic communication and especially broadband access services is also another issue that bears importance.


Figure 5.7: Broadband Subscriber Penetration in EU-27 and in Turkey, 2009

Source: The values concerning Turkey were obtained from the Information and Communication Technologies Authority and other values were obtained from the 15th Progress report of the European Commission.

Note: The total number of mobile broadband subscribers was taken into consideration for Turkey and the number of the subs-cribers of modems (dedicated line) used for mobile broadband connections was considered for EU-27. The subject data do not exist for Bulgaria and Hungary.

Fixed broadbandMobile broadband

Percentage

TurkeyBulgaria

RomaniaPoland

HungaryGreece

SlovakiaLatvia

Czech RepublicGCASC

LithuaniaSpain

SloveniaItaly

EstoniaMaltaEU-27

BelgiumIreland

LuxembourgFrance

GermanyPortugalEnglandAustria

NetherlandsSwedenFinland

Denmark


5.EL

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ON

ICCO

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UN

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Figure 5.8: Ratio of the Population Covered by the DSL Infrastructure in EU-27 and in Turkey, 2009

Source: European Digital Competitiveness Report 2010, Ministry of Transport and Communications

Percentage

RomaniaPoland

SlovakiaBulgaria

LatviaLithuania

TurkeyGreece

Czech RepublicIrelandEU-27Spain

SloveniaEstoniaAustria

HungaryGCASC

ItalyPortugalFinland

GermanyMalta

NetherlandsBelgium

LuxembourgFrance

EnglandSweden

Denmark


Figure 5.9: Broadband Connection Type and Subscriber Penetration in OECD Countries, June 2010

Source: OECD Broadband Portal (www.oecd.org/sti/ict/broadband)

Percentage

DSL

Cable

Fiber

Wireless

Other

MexicoTurkey

ChileGreece

Czech RepublicNew Zealand

HungaryBelgiumPortugal

AustriaSlovakiaCanadaFinland

GermanyItaly

OECDSpain

EnglandPolandFrance

NetherlandsIcelandIreland

AustraliaUSA

LuxembourgSwitzerland

DenmarkJapan

NorwaySweden

South Korea


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ICCO

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UN

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Figure 5.10: Average Broadband Data Download Speed in OECD Countries, September 2010


Percentage

MexicoChile

IrelandLuxembourg

SpainUSA

GreeceTurkey

GermanyHungaryCanada

SwitzerlandNew Zealand

PolandBelgium

Czech RepublicDenmark

EnglandIcelandAustria

ItalyFinland

OECDAustralia

NetherlandsNorwaySlovakia

South KoreaFranceJapan

PortugalSweden


Figure 5.11: Average Cost of Broadband Access per Mbps in OECD Countries, September 2010


US Dollars / Mbps (Purchasing Power Parity)

JapanFrance

South KoreaGreece

EnglandAustria

NetherlandsPortugal

DenmarkGermanyAustraliaBelgium

ItalyFinland

New ZealandSwedenIcelandNorway

Czech RepublicSlovakia

USACanada

SloveniaOECD

SwitzerlandPolandTurkey

IsraelHungary

LuxembourgSpain

IrelandEstonia

ChileMexico


Technological developments and the increasing global competition reveal the importance of the R&D and innovation in ensuring sustainable growth. Within this context, ICT and R&D were emphasized in the 9th Development Plan and prioritizing R&D activities in the ICT sector as an innovative sector with high added value, the demand for which gradually increases in the world markets, and benefiting to the maximum extent from ICT in improving R&D and innovation activities and making them efficient were put forth as strategic priorities in the Information Society Strategy, which covers the period of 2006 - 2010.

Countries that take measures with the aim of increasing their competitiveness with R&D and innovation supported policies, generating added value, and therefore ensuring that the economy stays strong especially during periods of economic crises gain a significant advantage in global competition after the crisis. In line with this, when the funds required by R&D and innovation activities are taken into consideration, increasing the incentives provided in the field of R&D and innovation activities, particularly during times of crisis, is critically important in ensuring sustainable growth.

In addition, a major part of the R&D activities, which can be transformed into goods and services to meet the market demands, are being conducted by the private sector. It is also known that technological innovation activities are mostly carried out by the firms operating in the field of ICT. When this situation is taken into consideration, it is projected that the Law no 5746 on “Supporting Research and Development Activities”, which regulates the incentives provided in the field of R&D and innovation activities in a way to include new and original software activities as well, will play a critical role in increasing the total R&D expenditures as well as the share of the private sector within these expenditures.

6 IMPROVEMENT OF R&D andINNOVATION


The R&D Activities Survey and the Innovation Survey conducted by TURKSTAT have made it possible to evaluate the innovation in the industry and service sector, R&D and innovation expenditures as well as the share of ICT in R&D expenditures.

6.1 Research and Development

The share of R&D expenditures within the GDP was at 0.85% in 2009 (Figure 6.1). This ratio is low when compared with the target set as 2% (1% public sector and 1% private sector) in the Information Society Strategy as of 2010.

Box 6.1: R&D Centers within the scope of the R&D Law No 5746

The “Regulation on the Implementation and Supervision of the R&D Law no 5746” provides significant opportunities both for the enterprises that have established their R&D infrastructures and employ large numbers of employees in Turkey to develop their studies and in terms increasing the share of R&D expenditures in GDP through the establishment of new R&D centers. Following the issuance of the subject Regulation during the second half of 2008, a total of 87 enterprises were granted R&D Center Certificates as of March 2011, with 79 of them receiving these certificates between 2008 and 2010. In 2010 estimated R&D expenditures of these enterprises, which received the R&D Center Certificate, is 1.86 billion TL.

13% of the enterprises receiving the R&D Center Certificate between 2008 and 2010 operate in the field of ICT, while 11% of them perform their activities in the electric-electronic sector. 47% of these centers, more than half of which are located in the Marmara Region, are established in İstanbul or Ankara. In addition, the number of the personnel employed in R&D Centers has exceeded 10 thousand and 74% of them are researchers.Source: Ministry of Industry and Trade


6.IM

PRO

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ENT

OF

R&D

and

INN

OVA

TIO

N

When the share of the private sector within R&D expenditures is examined, it is seen that this share gradually increased by years until 2008, however, displayed a drop in 2009 (Figure 6.2). The shares of the higher education and the public sector, which were 43.8% and 12% in 2008, respectively, took place as 47% and 12.6% in 2009. This indicates that the private sector R&D expenditures remained below the total expenditures made by both the higher education and the public sector together.

Figure 6.1: Share of R&D Expenditures within the GDP

Source: Results of the TURKSTAT Research and Development Activities Survey

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The share of ICT R&D expenditures within R&D expenditures of the private sector8 increased by years and took place as 34.2% in 2009 (Figure 6.3).

Figure 6.2: Shares of Higher Education, Private Sector, and Public Sector in R&D Expenditures


8 Shows the R&D expenditures made by the ICT sector and does not cover the R&D expenditures made in the field of ICT by the firms that do not operate in the ICT sector.

Figure 6.3: Share of ICT R&D Expenditures within R&D Expenditures of the Private Sector


0

20

40

60

80

100Pe

rcen

tage Higher Education

Private SectorPublic Sector

10.4 8.0 11.6 11.7 10.6 12.0 12.6

23.2 24.2 33.8 37.0 41.3 44.2 40.0

66.3 67.9 54.6 51.3 48.2 43.8 47.4

25,3

40

35

30

25

20

15

10

5

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27,1

34,2

Perc

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25.3 27.1

34.2


6.IM

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R&D

and

INN

OVA

TIO

N

When R&D expenditures are examined by sources of financing, it is seen that 41%, 20.3%, and 34% of the total financing in 2009 were met by the private sector, higher education, and public sector, respectively. The ratios of the R&D expenditures financed by other domestic sources and foreign funds, on the other hand, were 3.7% and 1.1%, respectively (Figure 6.4)9.

Box 6.2: Research InfrastructuresResearch infrastructures where research activities, which are consistent with national

and regional priorities and which take into consideration the needs of the public and private sectors are important for improving the cooperation between universities and the industry in terms of both increasing R&D activities and training qualified researchers.

The research infrastructure investments supported by the public sector between 2003 and 2011 display a tendency to grow by years and increased from 101 million TL in 2003 to 453 million TL in 2011. A group within the research infrastructure investments supported by the public sector consists of Thematic Advanced Research Centers. 15 of the 134 Thematic Advanced Research Centers established as of 2010 are performing activities in the field of ICT.

9 In the data concerning the financing of R&D expenditures, the shares of the higher education and the public sector were provided together for the years excluding 2008 and 2009. The shares of the higher education and the public sector were 16.2% and 31.6% in 2008 and 20.3% and 34% in 2009, respectively.

Figure 6.4: Sources of Financing for R&D Expenditures


Perc

enta

ge

Higher Education and Public SectorPrivate SectorOther Domestic ResourcesForeign Resources

5.2 4.7 5.8 4.9 4.0 3.6 3.7

1.11.30.50.50.80.41.6

36.2 37.9 43.3 46.0 48.4 47.3 41.0

57.0 57.0 50.1 48.6 47.1 47.8 54.3


6.2 Innovation

Innovation expenditures are compiled from the Survey on Technological Innovations in Industry and Service Sectors, the last of which was conducted for the 2006-2008 period by TURKSTAT. According to this survey, innovation activities, which received a share of 0.2% from the total turnover within the industry and service sectors in 2006, increased in 2008 and their share reached 1.2%. The share of the innovation activities in the field of ICT within the total innovation activities10, on the other hand, dropped from 7.5% in 2006 to 4.6% in 2008.

According to the results of the survey, 29.8% of the enterprises performed technological innovation activities during this period. It is seen that from the enterprises included in the service sector, those operating in the field of ICT performed the most technological innovations compared to the others (Figure 6.5).

10 Shows the innovation expenditures made by the ICT sector and does not cover the innovation expenditures made in the field of ICT by the firms that do not operate in the ICT sector.

Figure 6.5: Technological Innovation in the Service Sector according to Lines of Activity

Source: TURKSTAT Survey on Technological Innovations in Industry and Service Sectors, 2006-2008

Percentage

Technical testing and analysis activities

Architecture, engineering, and related technical consultancy activities

Computers and related activities

Activities of financial intermediary institutions

Transportation communi-cation storage services

Wholesale trading

.

.

.

.

.

.


6.IM

PRO

VEM

ENT

OF

R&D

and

INN

OVA

TIO

N

According to the results of the same survey, it was found that 48.6% of the enterprises with 250 or more employees in Turkey performed technological innovation activities (Figure 6.6). Based on these results, it is possible to say that innovation activities increase in proportion to the size of the enterprise.

Figure 6.6: Technological Innovation Activities in the Service Sector by Group Size

Source: TURKSTAT Survey on Technological Innovations in Industry and Service Sectors, 2006-2008

Human resources is an important component, which shapes the innovation level of countries. The indicators concerning this field have been determined in the Measurement Document, as the youth education level, the number of university graduates between the ages 25 and 64 per 100 people, and the number of new graduates of science and engineering between the ages 20 and 29 per 1000 people. The youth education level (percentage of the population between the ages 20 and 24, who completed at least high school education) shows progress by years and it reached 57.6% as of 2010 (Figure 6.7).

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Figure 6.7: Youth Education Level

Source: TURKSTAT Household Labor Force Survey

A similar development tendency is also seen in the ratio of university graduates between the ages of 25 and 64 and this ratio reached 12.6% in 2010 (Figure 6.8).

Figure 6.8: People With Undergraduate Degree in 25-64 Age Group

Source: TURKSTAT Household Labor Force Survey

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6.IM

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and

INN

OVA

TIO

N

Even though not provided in previous years, the number of new graduates in science and engineering was calculated this year from the number of new graduates in the 2008-2009 academic year included under “Mathematics and Science” and “Technical Sciences” in the table entitled Number of Undergraduate Students According to Fields of Education, which was included in the 2009-2010 Academic Year Higher Education Statistics Book published annually by the Student Selection and Placement Center. However, the numbers of graduates from the technical departments of other fields such as medical sciences, applied social sciences, and agriculture and forestry, etc. were not covered. According to this reporting, in 2009 the number of those who earn an undergraduate degree in science and engineering was 48,000 (Figure 6.9).

Figure 6.9: People With Undergraduate Degree in Science and Engineering

Source: Higher Education Statistics, Student Selection and Placement Center (ÖSYM)

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.. . . . .

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Another component that indicates the innovation levels of countries is the number of patents. The number of patents per million people, which was 2.6 in 2007, increased by years and reached 6.9 in 2010 (Figure 6.10). In spite of this, the number of patents obtained by Turkey from the EU per million people continues to remain at a level that is lower than 1. This figure was measured to be 114.9 for EU-27 in 200611.

11 The EU-27 data was obtained from the European Innovation Scoreboard 2009, which was accessed as of May 2011.

Figure 6.10: Number of Patents per Million People

Source: Turkish Patent Institute (TPI)

Box 6.3: Technology Development Zones

Clusters, which promote both cooperation and learning and competition, bring along advantages such as depth in R&D activities, speed in the learning process, quality originating from intense competition, advanced technological infrastructure, and low costs. 39 Tech-nology Development Zones, 27 of which are operating, have been established as of March 2011 to benefit from these advantages.

A total of 1,543 firms are included in these zones and 66 of them are joint ventures with foreign partners. 59% of these firms operate in the field of software and informatics and 2% operate in communication. The number of personnel employed in these zones is 13,645 and the volume of their technologic product exports is 540 million US Dollars. The number of patents applied for / approved has exceeded 300.

Source: Ministry of Industry and Trade

0

2

4

6

8

10

Num

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f Pati

ents

From TPI From EU

.

.

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.

.

.

.


6.IM

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OF

R&D

and

INN

OVA

TIO

N

INTERNATIONAL COMPARISONSEven though the share of R&D expenditures in GDP in Turkey increased by years

and reached 0.85% in 2009, this ratio is lower than the EU-27 average of 2% (Figure 6.11). When the private and public sector sub-fractions within the R&D expenditures of Turkey and EU-27 are considered, it is seen that 40% of the R&D expenditures are made by the private sector in Turkey, whereas this ratio is 62.5% in EU-27. This indicates that contrary to the situation in Turkey, R&D expenditures are mostly made by the private sector in EU-27.

The youth education level, which represents the percentage of the population between the ages 20 and 24, who completed at least high school education, has improved by years in Turkey. However, this ratio, which was 57% for Turkey in 2009, continues to remain below the EU-27 average of 78.6% (Figure 6.12).

Figure 6.11: Share of R&D Expenditures in GDP, Turkey – EU-27 Comparison

Source: EU-27 values were obtained from the European Innovation Scoreboard (2008,2009) and the Innovation Union Scoreboard (2010).

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EU-27-Public Sector EU-27-Private Sector Turkey-Public Sector Turkey-Private Sector

.

.

.

.

..

..

..

. .


Figure 6.12: Youth Education Level, Turkey – EU-27 Comparison

Source: EU-27 values were obtained from the European Innovation Scoreboard (2007, 2008,2009) and the Innovation Union Scoreboard (2010).

Innovation capacities of the European countries are evaluated regularly every year by the European Commission. According to the data obtained from the “Inno-vation Union Scoreboard” published in February 2011, the innovation performance index of Turkey (0.2) remains below the EU-27 average (0.5). On the other hand, Tur-key made a significant increase in indicator values compared to the previous year and the innovation performance index growth ratio, which was 0.85% for EU-27, was calculated as 4.1% for Turkey.

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ANN

EX

Annex – 1 Table of Main IndicatorsThe data contained in the following table are the actual and target values on an

annual basis to monitor the transformation into an information society based on key indicators defined by sections of the strategy. Key indicators, which are included in the 117 indicators, and located within the relevant sections of the publication, are given again collectively.

ANNEX


(Percentage)

# Main Indicator 2007T

2007A

2008T

2008A

2009T

2009A

2010T

2010A

3 Households with computers connected to the Interneta 8.7 15.8 12.4 19.5 20.0 22.5 32.5 34.0

12 Internet user individuals 16.5 26. 9 20.8 32.2 28.7 34.0 39.8 37.6

12 Internet user students 56.8 82.8 63.1 83.3 73.7 88.2 86.0 89.5

12 Internet user employees 23.4 36.0 31.7 42.4 44.2 44.6 60.4 49.0

12 Internet users, who are unemployed 23.9 42.2 28.4 48.7 36.4 41.6 46.6 48.2

14 Individuals, who access the Internet from PIAPs 0.4 - 0.6 - 1.3 - 2.7 -

15Employees and the unemployed, who use the Internet for training purposes

2.3 - 4.2 - 9.1 - 19.8 -

15 Students, who use the Internet for training purposes 39.2 - 45.1 - 55.1 - 67.4 -

15 Individuals, who perform online banking 3.5 4.0 5.5 4.9 10.4 4.8 19.5 16.8

15 Individuals, who do online shopping 3.6 0.8 5.5 1.3 10.0 0.7 18.2 6.3

20 Users, who experience security problems 32.0 31.0 35.0 29.0 33.0 28.9 28.0 46.8

30 Ratio of enterprises with computers 64 88.7 67 90.6 73 90.7 86 92.3

32 Ratio of enterprises with broadband Internet access b 23 80.5 26 85.0 34 84.0 53 90.9

41 Share of e-Commerce sales in total turnover 2 - 3 - 4 - 9 -

50 Ratio of enterprises that use enterprise resource planning 2 7.8 3 10.8 4 10.0 9 15.3

51 Ratio of enterprises that use supply chain management 1 5.6 1 6.6 3 11.9 8 16.0

52Ratio of enterprises that use customer relations management

0.4 8.6 0.5 12.5 1.3 7.1 3.5 32.7

59 Ratio of services provided over electronic channels - - - - 45 - 60 -

60 EU 20 basic public services online sophistication 70 69 100 - 100 - 100 91

62 Individuals, who use e-Government services 8.1 7.2 10.9 8.4 16.6 7.5 25.2 10.8

63

Ratio of enterprises that benefit from public services provided through electronic channels for obtaining information c

- 78.4 - 83.6 - 81.5 90d 81.5

63

Ratio of enterprises that benefit from public services provided through electronic channels for downloading forms c

- 72.3 - 77.0 - 73.8 80d 82.8

63

Ratio of enterprises that benefit from public services provided through electronic channels for filling out forms c

- 59.5 - 64.1 - 57.9 60d 57.5

63Ratio of enterprises that complete their transactions over electronic channels c

- - - - - - 30d -


ANN

EX

# Main Indicator 2007T

2007A

2008T

2008A

2009T

2009A

2010T

2010A

64Ratio of services provided through electronic channels in public services

14 - 16 65.1 20 66.2 26 81.3

69 e-Services user satisfaction index level e - 64.1 - 63.3 60 95 70 95.7

70Ratio of electronic public services with fully online back office processes

- - - - 50 - 70 -

72 Ratio of public procurementsdone in electronic environment - - - - - - 60 -

75Ratio of savings achieved in annual current public expenditures

- - - - - - 6 -

76Ratio of ICT projects completed within budgetary limits and in time f

- - - - - 24.2 90d 24.4

90Domestic Market Size of Packaged Software (Million US $)

545 489 684 515 849 511 1.042 584

90 Domestic Market Size of Services (Million US $) 747 639 906 720 1.086 709 1.291 909

90Domestic Market Size of Information Technologies Hardware (Million US $)

2.688 4.798 3.306 4.726 4.077 5.440 5.093 6.077

92 Size of Packaged Software Exports (Million US $) 42 - 59 - 82 - 115 -

92 Size of Services Exports (Million US $) 56 - 78 - 110 - 154 -

92 Size of Information Technologies Hardware Exports (Million US $) 13 - 16 - 20 - 24 -

100Share of the Information Technologies sector within GDP (percentage)

1.2 0.92 1.4 0.81 1.6 1.08 1.87 1.03

-Ratio of Software and Service Exports in the Software and Service Market (percentage)

7.6 - 8.6 - 9.9 - 11.53 -

105

Ratio of the population covered by broadband access infrastructures within the total population (percentage)

82 - 86 ≈ 90g 90 ≈ 90g 93 ≈90g

106 Broadband subscriber penetration 3.8 6.5 5.8 8.4 8.0 9.4 10.0 11.6

107Ratio of the cost of broadband access to the end-user income per capita (percentage)

4.3 - 3.5 2.6 2.8 2.5 2.2 2.2

109Ranking of the competitiveness of the sector among the EU countries

- - - 20/20 - 19/22 1-5d -

T: Target Value, A: Actual Valuea 2010 data show the use of desktop, portable, or hand-held computers while 2011 data demonstrate the use of desktops to access the internet. b Values belongs to xDSL connection for years of 2007, 2008 and 2009, and total broadband connections, which includes all broadband connections, for year 2010. c The data obtained from the 2007, 2008, 2009 and 2010 Enterprise Use of Information Technologies Survey belong to the years 2006, 2007,2008 and 2009, respectively. d In the Measurement Document 2011 target values were written as 2010 target values for comparison purposese The target value in this indicator is the user satisfaction index, which will consist of five components, namely, speed, accuracy, security, advantage of use, and access. However, the value given in the actual value section corresponds to a single ratio obtained from the Life Satisfaction Survey conducted by TURKSTAT.f This indicator is calculated using e-government implementation projects placed in the investment program in a specific term, considering the ratio of the projects completed within budgetary limits and in time. g Data of Actual values are provided by Ministry of Transport and Communications.


Annex - 2 Table of Indicators# Indicator Breakdown

SOCIAL TRANSFORMATION

1 Presence of ICT equipment in households - Urban/Rural- ICT equipment (personal computer, cell phone etc.)

2 Presence of Internet access in households - Urban/Rural

3 ICT equipment in households with Internet connection - Urban/Rural- ICT equipment

4 Method of Internet access in households

- Urban/Rural- type of connection- by genre- Narrowband/Broadband

5 Reason of not using Internet at home - Urban/Rural- Reason of not using

6 Percentage of people received computer-related training - Urban/Rural- Term of training

7 Percentage of computer usage

- Age - Sex - Education- Employment status- Urban/Rural- time interval

8 Computer usage in the last 3 months- Sex- Urban/Rural- Frequency

9 Place of computer usage in the last 3 months- Sex- Urban/Rural- Place of usage

10 Activities performed with computer - Urban/Rural- Type of activity

11 Place of computer usage in the last 3 months- Sex- Urban/Rural- Place of usage

12 Internet usage rate

- Age- Sex- Education- Employment status- Urban/Rural- time interval

13 Frequency of Internet usage in the last 3 months- Sex- Urban/Rural- Frequency

14 Place of Internet usage in the last 3 months

- Sex- Urban/Rural- Place of usage (home, work, school, Internet cafe, friend, relative etc.)

15 Internet usage in the last 3 months for particular purpose

- Age- Sex- Education- Employment status- Urban/Rural- Purpose of usage (education, research, e-commerce, banking etc.)

16 Purchasing goods/services over the Internet- Urban/Rural- Type of good/service- Payment method


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# Indicator Breakdown

17 Barriers to purchases over the Internet - Urban/Rural- Barriers

18 Reasons for not making purchases over the Internet - Urban/Rural- Reasons

19 Distribution of security measures taken within the last 3 months

- Urban / Rural- Type of security measure taken (loading virus programs, updating virus programs, digital signature or pin use)

20 Security issues encountered while using the Internet within the last 12 months

- Urban / Rural- Security issue encountered

21 Number of PCs used by students

- Primary schools- Secondary schools (Classical High School, Vocational High School, Anatolian High School, Science High School)- Province- Urban / Rural- Internet Connection

22 Number of PCs used by teachers

- Primary schools- Secondary schools (Classical High School, Vocational High School, Anatolian High School, Science High School)- Province- Urban / Rural- Internet Connection

23 Number of IT laboratories

- Primary schools- Secondary schools (Classical High School, Vocational High School, Anatolian High School, Science HighSchool)- Province- Urban / Rural

24 Number of classes equipped with IT tools

- Primary schools- Secondary schools (Classical High School, Vocational High School, Anatolian High School, Science HighSchool)- Province- Urban / Rural

25 Distribution of IT competency among teachers

- Primary schools- Secondary schools (Classical High School, Vocational High School, Anatolian High School, Science High School)- Province- Urban / Rural- 4 certificate levels

26 PIAPs and number of computers at PIAPs

- Institution connected to (Public Education Center, Library, Municipality, Foundation, Private Enterprise, etc.)- Province- District

27 Number of individuals receiving educationat PIAPs


28 Daily capacity usage ratio at PIAPs for access purposes


29 Daily capacity usage ratio at PIAPs for education purposes




ADOPTION OF ICT BY BUSINESS

30 Ratio of enterprises with computers

- Sector operated in (NACE code)- Number of employees- 10 - 49 employees- 50 - 249 employees- 250+ employees

31 Ratio of enterprises with Internet access


32 Ratio of enterprises with broadband Internet access

- Sector operated in (NACE code)- Number of employees- 10 - 49 employees- 50 - 249 employees- 250+ employees- Type of connection- By type

33 Ratio of enterprises with a website


34 Ratio of enterprises using local area network (LAN)


35 Ratio of enterprises using wireless local area network (wireless LAN)


36 Ratio of enterprises using the Extranet


37 Ratio of enterprises using the Intranet


38 Ratio of enterprises with local area network (LAN) and using the Intranet and Extranet


39 Ratio of enterprises using the Internet to communicate with public agencies



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40 Ratio of enterprises taking online purchase orders

- Sector operated in (NACE code)- Number of employees- 10 - 49 employees- 50 - 249 employees- 250+ employees- Online purchase orders over the Internet

41 Share of enterprises’ e-trade sales in total turnover


42 Volume of e-trade transactions made over the Internet

43 Ratio of enterprises receiving online payments in sales realized over the Internet


44 Ratio of enterprises purchasing over the Internet


45

Ratio of enterprises, where the software application used for the management of purchase orders is automatically connected to the business systems of suppliers or customers outside the enterprise


46 Purposes of enterprises for using the Internet

- Sector operated in (NACE code)- Number of employees- 10 - 49 employees- 50 - 249 employees- 250+ employees- Type of purpose for using the Internet

47 Ratio of enterprises experiencing security issues related to ICT

- Sector operated in (NACE code)- Number of employees- 10 - 49 employees- 50 - 249 employees- 250+ employees- Type of security issue encountered

48 Ratio of enterprises taking security measures related to ICT

- Sector operated in (NACE code)- Number of employees- 10 - 49 employees- 50 - 249 employees- 250+ employees- Type of security measure taken

49 Ratio of enterprises using at least two security measures related to ICT


50 Ratio of enterprise using Enterprise resource Planning (ERP)




51 Ratio of enterprise using Supply Chain Management (SCM)


52 Ratio of enterprise using Customer Relations Management (CRM)


53 Ratio of enterprises outsourcing for ICT services


54 Ratio of employees using computers at least once a week


55 Ratio of employees using the Internet at least once a week


56 e-Business Preparation Index / adoption of ICT


57 Significant obstacles to trading over the Internet according to enterprises

- Sector operated in (NACE code)- Number of employees- 10 - 49 employees- 50 - 249 employees- 250+ employees- Type of obstacle

58 Order of importance of benefits obtained by enterprises through sales made over the Internet

- Sector operated in (NACE code)- Number of employees- 10 - 49 employees- 50 - 249 employees- 250+ employees- Type of obstacle

CITIZEN-FOCUSED SERVICE TRANSFORMATION

59 Ratio of services provided over electronic channels

- According to user- Public Sector - Public Sector- Public Sector - Citizens- Public Sector - Enterprises- Level of development

60 EU 20 basic public services online sophistication Service provision online sophistication

61 Ratio of public websites providing access to users with special needs (the disabled) - Type of special need (visually -hearing impaired)

62 Ratio of individuals using the Internet in their transactions with public agencies

- Purpose of use (Obtaining information, downloading forms, sending forms, other)- Age, gender, education, employment status, urban / rural, income status)


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63 Ratio of enterprises using the Internet in their transactions with public agencies

- Purpose of use (Obtaining information, downloading forms, sending forms, completing transactions)- Size of enterprise (NACE)

64 Ratio of services provided through electronic channels in public services - On the basis of services (EU 20 Basic Public Services)

65 Number of services integrated in the e-Government Gateway

- Maturity level (Obtaining information, downloading forms, sending forms, completing transactions)- Channel- Call Center- Internet- Mobile

66 Number of e-Government Gateway visitors

- Unregistered visitor- Registered visitor- Age group- Gender- Level of education- Employment status- Province

67 Obstacles preventing individuals from using e-government services

- Not feeling the need- Security- Difficulty of use, etc.

68 Obstacles preventing enterprises from using e-government services

- Not feeling the need- Security- Difficulty of use, etc.

69 User satisfaction index level (e-Services)

MODERNIZATION IN PUBLIC ADMINISTRATION

70 Ratio of electronic public services with fully online back office processes

- Agency- Service- Segment addressed (public sector / citizens / business)

71 Number of public employees, who have received a certificate related to ICT

- Agency- Type of certificate

72 Ratio of public procurements realized in electronic environment

- Category of procurement- Agency- Size of procurement amount (to be defined)

73 Number of agencies using software with open source codes- Agency- Type of software (operating system, application software)

74 Ratio of correspondences with electronic signature in the public sector

- Agency- Intra-agency- Inter-agency

75 Ratio of saving achieved in annual current public expenditures

- On the basis of services (EU 20 Basic Public Services)- Current expense items (personnel, stationery, etc.)

76 Ratio of ICT projects completed within budgetary limits and in time

- Agency- Deviation from time and budget targets

INFORMATION TECHNOLOGIES

77 Number of enterprises operating in the field of information technologies

- Hardware- Software- Services

78 Number of domestic enterprises operating in the field of information technologies




79 Number of employees working in enterprises operating in the field of information technologies


80 Distribution of enterprises operating in the field of information technologies according to number of employees

Number of employees working in the fields of hardware, software, and services- 1 - 9 employees- 10 - 49 employees- 50 - 249 employees- 250+ employees

81 New enterprises established in the field of Information Technologies


82 Average age of enterprises operating in the field of Information Technologies


83 Employment in the ICT sector- R&D- Production- Other

84 Ratio of R&D employees in the ICT sector

85 Share of information and communication technologies employment within total employment

86 Share of employment associated with information and communication technologies within total employment

87 Number of enterprises performing R&D studies in the field of information technologies

88 Number and ratio of enterprises performing exports in the field of information technologies


89 Market size of the ICT sector - Communication technologies- Information technologies

90 Sub-market sizes and shares in the information technologies sector


91 ICT sector production (hardware)

92 Exports of the information technologies sector- Hardware- Software- Services

93 Imports of the information technologies sector- Hardware- Software- Services

94 Balance of trade in the information technologies sector- Hardware- Software- Services

95 Ratio of imports covered by exports in the information technologies sector


96 Market growth in the information technologies sector- Hardware- Software- Services

97 Export growth in the information technologies sector- Hardware- Software- Services

98 Import growth in the information technologies sector- Hardware- Software- Services


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99 Added value of the ICT sector- Hardware- Software- Services

100 Share of the ICT sector within GDP

- Communication technologies- Information technologies- Hardware- Software- Services

COMMUNICATION TECHNOLOGIES

101 Number of subscribers of telecommunication services

- Fixed line- Mobile phone- Internet Services- Cable TV- Other

102 Sub-market sizes and shares in the telecommunications sector

- Fixed- Fixed voice- Fixed data / Internet

103 Total telecommunication infrastructure investments

- Fixed- Fixed voice- Fixed data / Internet- Mobile- Cable TV- Other

104 Telecommunication tariff baskets

- Domestic Fixed Line- International Fixed Line- Composite (Domestic - International)- Mobile

105 Ratio of broadband prevalence

- DSL- Cable Internet- Mobile- Other

106 Number and ratio of broadband subscribers

- According to type of connection- DSL- Cable Internet- Other- According to connection speed- 256 kbps- 512 kbps- 1024 kbps- 2 mbps- 4 mbps- According to place of connection- Household- Workplace

107 Ratio of monthly broadband access cost in national income per capita

- Limited / Unlimited- Connection Speed

108 Level of competition in broadband access - DSL- Cable Internet

109 Regulatory Report Card Score



R&D AND INNOVATION

110 Number of new graduates of science and engineering between the ages of 20 and 29 per 1000 people

111 Number of university graduates between the ages of 25 and 64 per 100 people

112Youth education level (percentage of population between the ages of 20 and 24, who have completed at least high school education)

113 Share of R&D expenditures within GDP - Public Sector- Private Sector

114 Share of ICT R&D expenditures within total R&D expenditures

115 Share of innovation expenditures within total turnover

116 Share of innovation expenditures in the field of innovation within total innovation expenditures

117 Number of patents per million people- EU- USA- Triadic


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Annex - 3 Indicators, which could not be Measured and the Reasons for failing to make the measurement27 of the 117 indicators of the Measurement document could not be measured.

The reasons are provided in the below table.

# Indicator Reason for failing to make themeasurement

Social Transformation

24 Number of classrooms equipped with IT devices Detailed data is not kept by the MNE

26 Number of PIAPs and computers in PIAPsDetailed data is not kept by the MNE

27 Number of individuals received training from PIAPs

28 Capacity usage rates of PIAPs for daily access purposes Capacity usage rates cannot be calculated due to the problems concerning the 29 Capacity usage rates of PIAPs for daily operation and management of PIAPs

29 Capacity usage rates of PIAPs for daily operation and management of PIAPs training purposes

ICT Adoption by Businesses

40 Ratio of enterprises receives online orders

The question was asked, however, a meaningful answer could not have been obtained.

41 Share of e-Commerce sales in total turnover

43 Ratio of enterprises accepts online payments.

44 Ratio of enterprises place online orders

45

Ratio of enterprises, where the softwareapplication used for the management ofpurchase orders is directly connected to thebusiness systems of suppliers or customersoutside the enterprise

There was no question related to this indicator in the surveys.

47 Ratio of enterprises that experience security problems There was no question related to this indicator in the surveys of 2009 and 2010.

48 Ratio of enterprises that take security measures

49 Ratio of enterprises using at least two securitymeasures related to ICT

There is no question related to thisindicator in the surveys.

53 Ratio of companies outsourcing ICT services There was no question related to this indicator in the surveys of 2009 and 2010.

56 e-Business Preparation Index / adoption of ICT Cannot be calculated due to lack ofindicator no 49.


# Indicator Reason for failing to make themeasurement

57 Significant barriers to online trading (enterprises consider) There was no question related to this indicator in the survey of 2010.

58 Importance of online sales for enterprises

e-Government (Citizen-Focused Service Transformation and Modernization of Public Administration)

59 Ratio of services provided over electronic channels

It was not possible to reach the number of services based on a standard public service definition relying on the Public Service Inventory, which would constitute the basis for the calculation of this indicator, and likewise, it was not possible to identify the services provided in electronic environment.

70 Ratio of electronic public services with fully online back office processes

The agency responsible for the calculation of this indicator is the State Planning Organization. No progress has been made by the Organization.

71 Number of public employees, who have received a certificate related to ICT

The agency responsible for the calculation of this indicator is the State Personnel Department. No progress has been made by the Organization.

72 Ratio of public procurements done in electronic environment

This indicator cannot be calculated since the electronic procurement application could not be implemented.

73 Number of agencies using software with open source software The agency responsible for the

calculation of this indicator is the State Planning Organization. No progress has been made by the Organization.

74 Ratio of correspondences with electronic signature in the public sector

75 savings rate of annual public sector expenditures

Information Technology

79 Number of employees working in enterprises operating in the field of information technologies

Since the subject data were collected from different resources, in different methods, and offer information for very limited audience in the field of ICT, the data was not consistent. Therefore, the data obtained from the Ministry of Industry and Trade was not taken into consideration.

82 Average age of enterprises operating in the field of information technologies

Communication Technologies

109 Ranking of the competitiveness of the sector among the EU countries

2010 data related to the competitiveness of the sector were not reported as of May of 2011.


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Annex - 4 International RankingsInternational rankings are published by various agencies and organizations on

a regular basis with regard to the extent to which countries use or whether or not they are ready to use ICT. Within this context, different readiness indices are used to calculate the e-transformation performances of countries and they are ranked by taking these index values into consideration.

Since each index is the product of a different definition and methodology, different criteria are used in measuring the level of readiness and therefore the ranking of countries may be different in each index. Information concerning the e-performance of Turkey in the World Economic Forum Network Readiness Index12 and the United Nations e-Government Survey13 is provided below.

The World Economic Forum Network Readiness Index

The network readiness index has been published by the World Economic Forum regularly since 2001. The network readiness index values for Turkey are in Table E4.1.

Table E4.1: Place of Turkey in the Ranking according to the WEF Network Readiness Index

YearsAverage Growth

Network Readiness Index

Network Readiness Index of Turkey

Place of Turkey in Ranking

Total Number of Countries

2001 3.69 3.67 41 75

2002 3.92 3.57 50 82

2003 3.72 3.32 56 102

2004 4.00 3.68 52 104

2005 4.00 4.00 48 115

2006 3.84 3.86 52 122

2007 3.93 3.96 55 127

2008 3.95 3.91 61 134

2009 3.86 3.68 69 133

2010 3.90 3.79 71 138

12 The World Economic Forum reports may be accessed from http://www.weforum.org/reports.13 The United Nations e-Government Survey may be accessed from http://www.unpan.org/.


Turkey ranked the 41st among 75 countries in the network readiness index in 2001. In 2010, on the other hand, Turkey fell back to the 71st place among 138 countries with the increase in the number of countries evaluated in the survey during the subsequent years.

The network readiness index comprises of “environment, readiness, and usage” sub-indices. Each sub-index is divided into 3 components in itself and each component is calculated based on around 10 variables. Country scores are calculated by taking the simple arithmetic averages of sub-indices. These sub-indices and the components used in their calculation have been discussed in detail below.

The Environment Sub-Index:

This sub-index comprises of the market environment, political and regulatory environment, and infrastructure environment components. Turkey fell back to the 63rd place in 2010 in the environment sub-index from her 59th place in 2009.

The Readiness Sub-Index:

The readiness sub-index shows the readiness of individuals, businesses, and government to use the ICT. This sub-index comprises of the individual readiness, business readiness, and government readiness components. In the readiness sub-index Turkey rose to the 81st place in 2010 from her 90th place in 2009.

The Usage Sub-Index:

This sub-index comprises of the individual usage, business usage, and government usage components. In the readiness sub-index Turkey ranked the 62nd in 2009 and 2010.

Two basic reasons are considered to have caused Turkey to rank in lower places in the network readiness indices of the World Economic Forum.

The first is the inability to reach the data for some variables in previous years or the use of outdated data by WEF. For instance, in 2009, the data for three (fixed broadband, mobile, and fixed telephone tariffs) of the eight variables taken as basis in determining the individual readiness level included under the readiness sub-index were shown as not available (n/a). The data concerning the “Mobile Phone Tariffs” and “Fixed Telephone Line Tariffs”, in which outdated data were used, can be found


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in the “Communications Outlook” document, which is published biannually by OECD. The information regarding the “Fixed Broadband tariffs”, on the other hand, are more frequently updated in the “OECD Broadband Portal”. Again the data belonging to 2006 were used for electricity generation and personal computer usage variables in the 2009 ranking. Even though all the data for Turkey were provided for the 2010 ranking, the lacking data in previous years or the data being outdated have constituted a problem in terms of determining the place of Turkey in the ranking.

The second basic reason is that ranking was made by opinion survey or subjective evaluations were made in some variables. For instance, the question regarding the decision making culture of users included under the individual readiness component (whether the users valued the price or the performance of the product / service when making decisions in service purchases, “buyer satisfaction”) caused Turkey to recede to rank 114 in 2010 from her 97th place in 2009. Similarly the freedom of press variable was also evaluated through an opinion survey and Turkey fell back to rank 135 in 2010 from her 124th place in 2009. These subjective evaluations, which particularly arose in this variable in a distinct manner, are considered to have played a major role in Turkey’s fall back in the rankings

The United Nations e-Government Survey

The United Nations (UN) e-Government Survey, which was conducted in 2003, 2004, 2005, 2008, and 2010, evaluates the UN countries and generates an e-government readiness index ranging between 0 and 1. The e-Government index comprises of three sub-indices, which are “online services, infrastructure, and human resources”. This index compares the e-government performances of countries and reveals an international ranking.


Table E4.2: Place of Turkey in the Ranking according to the United Nations e-Government Survey

Years Turkey’s Index Value

Index Value World Average

Place of Turkey in Ranking

Total Number of Countries

2003 0.506 0.402 49 191

2004 0.4892 0.4127 57 191

2005 0.496 0.4267 60 191

2008 0.4834 0.4514 76 192

2010 0.478 0.4406 69 192

According to the UN e-Government Survey the e-government survey of Turkey is above the world averages. Even though Turkey was unable to catch the score of 0.506 she attained in 2003 in subsequent years, she has displayed a positive development by ascending to rank 69 in 2010 from the 76th rank in 2008.

The online services sub-index is calculated with the scores given to the maturity levels of government information systems and integrated service provision. Turkey ranked the 62nd in this sub-index in 2010. The infrastructure sub-index is determined with the number of Internet users, fixed and mobile subscriber penetration, personal computer and fixed broadband access ratios. Turkey ranked the 68th in the infrastructure sub-index in 2010. The human resources sub-index is determined with the literacy and schooling ratios.

The human resources and infrastructure indices were prepared based on data, however, the online services sub-index was limited to the survey conducted over the web. According to the UN survey Turkey remained behind in the human resources sub-index compared to the other two sub-indices and obtained a relatively better ranking in online services.


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Annex - 5 Sectors covered in ICT Enterprise Surveys Before 2010 NACE Rev 1.1 Statistical Classification

Group Economic Activities

Manufacturing (Part D)

15 Manufacture of food products and beverages

16 Manufacture of tobacco products

17 Manufacture of textiles

18 Manufacture of wearing apparel; dressing and dyeing of fur

19 Tanning and dressing of leather; manufacture of luggage, handbags, saddlery, harness and footwear

20 Manufacture of wood and of products of wood and cork, except furniture; manufacture of articles of straw and plaiting materials

21 Manufacture of pulp, paper and paper products

22 Publishing, printing and reproduction of recorded media

23 Manufacture of coke, refined petroleum products and nuclear fuel

24 Manufacture of chemicals and chemical products

25 Manufacture of rubber and plastic products

26 Manufacture of other non-metallic mineral products

27 Manufacture of basic metals

28 Manufacture of fabricated metal products, except machinery and equipment

29 Manufacture of machinery and equipment n.e.c.

30 Manufacture of office machinery and computers

31 Manufacture of electrical machinery and apparatus n.e.c.

32 Manufacture of radio, television and communication equipment and apparatus

33 Manufacture of medical, precision and optical instruments, watches and clocks

34 Manufacture of motor vehicles, trailers and semi-trailers

35 Manufacture of other transport equipment

36 Manufacture of furniture; manufacturing n.e.c.

37 Recycling

Economic Activities

45 ConstructionWholesale and retail trade; repair of motor vehicles, motorcycles and personal andhousehold goods (Part G)

50 Sale, maintenance and repair of motor vehicles and motorcycles; retail sale of automotive fuel

51 Wholesale trade and commission trade, except of motor vehicles and motorcycles

52 Retail trade, except of motor vehicles and motorcycles; repair of personal and household goods

Hotels and restaurants (Group 55.1 and Group 55.2

55.1 Hotels

55.2 Camping sites and other provision of short-stay accommodation


Transport, Storage and Communication (Part I)

60 Land transport; transport via pipelines61 Water transport62 Air transport63 Supporting and auxiliary transport activities; activities of travel agencies64 Post and telecommunications65 Financial intermediation, except insurance and pension funding66 Insurance and pension funding, except compulsory social security67 Activities auxiliary to financial intermediation

Real estate, renting and business activities(Part K)

70 Real estate activities71 Renting of machinery and equipment without operator and of personal and household goods72 Computer and related activities73 Research and development74 Other business activities75 Public administration and defense; compulsory social security

Other community, social and personal service activities (Group 92.1 ve Group 92.2)

92.1 Motion picture and video activities

92.2 Radio and television activities

Financial intermediation (Group 65.12 ve Group 65.22)

65.12Other monetary intermediation

- monetary intermediation of monetary institutions other than central banks- postal giro and postal savings bank activities

65.22

Other credit granting- granting of loans by institutions not involved in monetary intermediation - granting of consumer credit - provision of long-term finance to industry - money lending outside the banking system- credit granting by mortgage credit institutions that do not take deposits- factoring services- pawn brokers

Financial intermediation (Group 66.01 and Group 66.03)

66.01 Life insurance- life insurance and life reinsurance with or without a substantial savings element

66.03

Non-life insurance- insurance and reinsurance of non-life insurance business;- accident, fire- health- property- motor, marine, aviation, transport- pecuniary loss and liability insurance


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Annex - 6 List of NACE Rev. 1.1 Description on the ICT SectorCode Description Included Not Included Additionally Incl.

DLManufacture of electrical and optical equipment

- - -

30Manufacture of office machinery and computers

- - -

30.0Manufacture of office machinery and computers

- - -

30.01Manufacture of office machinery

This class includes;- manufacture of manual or electric typewriters- manufacture of word processing machines- manufacture of hectograph or stencil duplicating machines, addressing machines and sheet-fed office-type offset printing machines- manufacture of calculating machines, cash registers, postage franking machines, special terminals for issuing of tickets and reservations, etc.- manufacture of diverse office machinery or equipment:- machines that sort, wrap or count coins; automatic banknote dispensers; machines that stuff envelopes, sort mail; pencil sharpening machines; perforating or stapling machines, etc.

- -

30.02Manufacture of computers and other information processing equipment

This class includes;- manufacture of automatic data processing machines, including microcomputers: digital machines, analog machines, hybrid machines- manufacture of peripheral units: printers, terminals, etc., magnetic or optical readers, machines for transcribing data onto data media in coded form

This class excludes;- manufacture of electronic parts found in computing machinery, see 32.10- manufacture of electronic games, see 36.50- repair and maintenance of computer systems, see 72.50

-

31.3Manufacture of insulated wire and cable

- - -

31.30Manufacture of insulated wire and cable

This class includes;- manufacture of insulated wire, cable, strip and other insulated conductors, whether or not fitted with connectors- manufacture of optical fiber cables for coded data transmission: telecommunications, video, control, data, etc.

This class excludes;- manufacture of uninsulated non-ferrous metal wire, see 27.4- manufacture of uninsulat-ed metal cable or insulated cable not capable of being used as a conductor of electricity, see 28.73- manufacture of wiring sets, see 31.61- manufacture of optic and fiber optic cables to transfer alive visualization, see 33.40

-


Code Description Included Not Included Additionally Incl.

32

Manufacture of radio, television and com-munication equipmentand apparatus

- - -

32.1Manufacture of electronic valves and tubes and other electronic components

- - -

32.10Manufacture of electronic valves and tubes and other electronic components

This class includes;- manufacture of thermionic, cold cathode or photocathode valves or tubes:- television picture tubes, television camera tubes, image converters and intensifiers, microwave tubes, receiver or amplifier valves or tubes, etc.- manufacture of diodes, transistors and similar semiconductor devices- manufacture of photosensitive semiconductor devices, including photovoltaic cells such as single solar cells- manufacture of mounted Piezoelectric crystals- manufacture of electronic integrated circuits and micro-assemblies:- monolithic integrated circuits, hybrid integrated circuits and electronic micro-assemblies of molded module, micro module or similar types- manufacture of printed circuits- manufacture of electrical capacitors (or condensers), including power capacitors- manufacture of resistors, including rheostats and potentiometers

This class excludes;- manufacture of heating resistors, see 29.71- manufacture of transform-ers, see 31.10- manufacture of switches,see 31.20

-

32.2

Manufacture of television and radio transmitters and apparatus for line telephony and line telegraphy

- - -

32.20

Manufacture of television and radio transmitters and apparatus for line telephony and line telegraphy

This class includes;- manufacture of apparatus for television transmission, including manufacture of relay transmitters and television transmitters for industrial use- manufacture of television cameras- manufacture of transmission apparatus for radio-broadcasting- manufacture of transmission apparatus for radio-telephony:- fixed transmitters and transmitter-receivers, radio-telephony apparatus for transport equipment, radio-telephones, other transponders, etc.- manufacture of apparatus for line telephony:- telephone sets, fax machines, automatic and non-automatic switchboards and exchanges, telex and teleprinter apparatus, etc.- manufacture of data communi-cation equipment such as routers, bridges and gateways

This class excludes;- manufacture of electronic components, see 32.10- installation of electrical wiring in buildings, see 45.31- repair of mobile telephones, see 52.74

his class also includes; - installation of telecommunication equipment


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32.3

Manufacture of television and radio receivers, sound or video recording or reproducing apparatus and associated goods

- - -

32.30

Manufacture of television and radio receivers, sound or video recording or reproducing apparatus and associated goods

This class includes;- manufacture of television receivers, including video monitors and video projectors- manufacture of video recording or reproducing apparatus, including camcorders, DVD recorders and players- manufacture of digital photo-graphic cameras- manufacture of radio-broadcasting receivers- manufacture of magnetic tape recorders and other sound recording apparatus, including telephone answering machines, cassette-type recorders, etc.- manufacture of turntables (record decks), record players, cassette players, CD players, etc.- manufacture of microphones, loudspeakers, headphones, earphones, amplifiers and sound amplifier sets- manufacture of pick-ups, tone arms, sound-heads, tables for turntables, aerials, aerial reflectors and aerial rotors, cable converters, TV decoders

This class excludes;- publishing and reproduc-tion of pre-recorded audio and video tapes, CDs and DVDs, see 22.1, 22.3, 92.11- manufacture of prepared unrecorded media, see24.65

This class also includes; - manufacture of sound electro acoustic apparatus, command transmitter intercoms, simultaneous interpretation apparatus, electronic voting systems, conference systems, portable sound systems

33

Manufacture of medical, precision and optical instruments, watches and clocks

- - -

33.2

Manufacture of instruments and appliances for measuring, checking, testing, navigating and other purposes, except industrial process control equipment

- - -



33.20

Manufacture of instruments and appliances for measuring, checking, testing, navigating and other purposes, except industrial process control equipment

- This class includes;- manufacture of laboratory type sensitive balances- manufacture of drawing, marking-out or mathematical calculating instruments:- measuring rods and tapes, micro-meters, calipers and gauges, etc.- manufacture of microscopes other than optical microscopes and diffraction apparatus- manufacture of apparatus for measuring and checking electrical quantities:- oscilloscopes, spectrum analysers, crosstalk meters, instruments for checking current, voltage, resistance, etc.- manufacture of apparatus for measuring or checking non-electrical quantities:- radiation detectors and counters, apparatus for testing and regulating vehicle motors, etc.- manufacture of navigational, meteorological, geophysical and related instruments and apparatus:- surveying instruments, oceanographic or hydrological instruments, seismometers, range-finders, automatic pilots, sextants, ultrasonic sounding instruments,- manufacture of electricity supply meters and supply meters for water, gas, petrol, etc.- manufacture of machines and appliances for testing the mechanical properties of materials- manufacture of instruments and apparatus for carrying out physical or chemical analyses:- polarimeters, photometers, refractometers, colorimeters, spectrometers, pH-meters, viscometers, surface tension instruments, etc.- manufacture of instruments and apparatus for measuring or checking the flow, level, pressure or other variables of liquids or gases:- flow meters, level gauges, manometers, heat meters, etc.- manufacture of diverse measuring, checking or testing instruments, apparatus or machines:- hydrometers, thermometers, barometers, revolution counters, taxi-meters, pedometers, tachometers, balancing machines, test benches, comparators, etc.

This class excludes;- manufacture of pumps incorporating measuring devices, see 29.12- manufacture of medical and surgical instruments,see 33.10- manufacture of industrial process control equipment,see 33.30- manufacture of binoculars, monoculars and similar optical devices, see 33.40- manufacture of optical microscopes, see 33.40

This class also includes;- manufacture of optical type measuring and checking appliances and instruments- air navigation instruments and systems, radar apparatus, radio remote control apparatus and radio navigational aid apparatus

33.3Manufacture of industrial process control equipment

- - -


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33.30Manufacture of industrial process control equipment

This class includes; - design and assembly of industrial continuous process control systems (also for automated production plants consisting of various machines, handling devices and centralized controlling apparatus)

- -

51.84Wholesale of computers, computer peripheral equipment and software

- - -

51.86Wholesale of other electronic parts and equipment

- - -

64.2 Telecommunication - - -

64.20 Telecommunication

This class includes;- transmission of sound, images, data or other information via cables, broadcasting, relay or satellite:- telephone, telegraph and telex communication- maintenance of the network- transmission (transport) of radio and television programmes- Internet access provision

This class excludes; - production of radio and television programmes even if in connection with broadcast, see 92.20

-

71.33Renting of office machinery and equipment, including computers

This class includes; - renting and operational leasing of office machinery and equipment, including computers, without operator; computing machinery and equipment, duplicating machines, typewriters and word processing machines, accounting machinery and equipment

- financial leasing, see65.21 -

72Computer and related activities

- - -

72.1 Hardware consultancy - - -

72.10 Hardware consultancy

This class includes:- consultancy on type and configuration of hardware and associated software application:- analyzing the users’ needs and problems and presenting the best solution

- -

72.2Software consultancy and supply

- - -

72.21 Publishing of software

This class includes: - development, production, supply and documentation of ready-made (non-customized) software

- -



72.22Other software consultancy and supply

- This class includes:- analysis, design and program-ming of systems ready to use:- analysis of the user’s needs and problems, consultancy on the best solution- development, production, supply and documentation of made-to-order software based on orders from specific users- writing of programs following directives of the user- web page design

This class excludes:- reproduction of non-customized software, see22.33- software consultancy related to hardware consultancy, see 72.10

-

72.3 Data processing - - -

72.30 Data processing

- This class includes;- database related activities: provision of data in a certain order or sequence, by on-line data retrieval or accessibility (computerized management) to everybody or to limited users, sorted on demand- processing of data employing either the customer’s or a proprietary program:- complete processing of data- data entry services- scanning of documents- management and operation on a continuing basis of data processing facilities belonging to others- web hosting

- -

72.4 Database activities - - -

72.40 Database activities

- This class includes:- on-line database publishing- on-line directory and mailing list publishing- other on-line publishing- web search portals

This class excludes: - Internet publishing in connection with other publishing, see 22

-

72.5Maintenance and repair of office, accounting and computing machinery

- - -

72.50Maintenance and repair of office, accounting and computing machinery

- - -

72.6Other computer related activities

- - -

72.60Other computer related activities

- - -


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Annex - 7 NACE Rev. 2 Statistical Classification of the Sectors Covered in the Survey on the Use of ICT in Enterprises 2010

Group Economic Activities

MANUFACTURING (SECTION C)

10 Manufacture of food products

11 Manufacture of beverages

12 Manufacture of tobacco products

13 Manufacture of textiles

14 Manufacture of wearing apparel

15 Manufacture of leather and related products

16 Manufacture of wood and of products of wood and cork, except furniture; manufacture of articles of straw and plaiting materials

17 Manufacture of paper and paper products

18 Printing and reproduction of recorded media

19 Manufacture of coke and refined petroleum products

20 Manufacture of chemicals and chemical products

21 Manufacture of basic pharmaceutical products and pharmaceutical preparations

22 Manufacture of rubber and plastic products

23 Manufacture of other non-metallic mineral products

24 Manufacture of basic metals

25 Manufacture of fabricated metal products, except machinery and equipment

26 Manufacture of computer, electronic and optical products

27 Manufacture of electrical equipment

28 Manufacture of machinery and equipment n.e.c.

29 Manufacture of motor vehicles, trailers and semi-trailers

30 Manufacture of other transport equipment

31 Manufacture of furniture

32 Other manufacturing

33 Repair and installation of machinery and equipment

ELECTRICITY, GAS, STEAM AND AIR CONDITIONING SUPPLY AND WATER SUPPLY; SEWERAGE, WASTE MANAGE-MENT AND REMEDIATION ACTIVITIES (SECTION D,E)

35 Electricity, gas, steam and air conditioning supply

36 Water collection, treatment and supply


37 Sewerage

38 Waste collection, treatment and disposal activities; materials recovery

39 Remediation activities and other waste management services

CONSTRUCTION (SECTION F)

41 Construction of buildings

42 Civil engineering

43 Specialized construction activities

WHOLESALE AND RETAIL TRADE; REPAIR OF MOTOR VEHICLES AND MOTORCYCLES (SECTION G)

45 Wholesale and retail trade and repair of motor vehicles and motorcycles

46 Wholesale trade, except of motor vehicles and motorcycles

47 Retail trade, except of motor vehicles and motorcycles

TRANSPORTATION AND STORAGE (SECTION H)

49 Land transport and transport via pipelines

50 Water transport

51 Air transport

52 Warehousing and support activities for transportation

53 Postal and courier activities

ACCOMMODATION AND FOOD SERVICE ACTIVITIES (SECTION I)

55 Accommodation

56 Food and beverage service activities

INFORMATION AND COMMUNICATION (SECTION J)

58 Publishing activities

59 Motion picture, video and television programme production, sound recording and music publis-hing activities

60 Programming and broadcasting activities

61 Telecommunications

62 Computer programming, consultancy and related activities

63 Information service activities

REAL ESTATE ACTIVITIES (SECTION L)

68 Real estate activities

PROFESSIONAL, SCIENTIFIC AND TECHNICAL ACTIVITIES (Group 69 and 74)

69 Legal and accounting activities

74 Other professional, scientific and technical activities

ADMINISTRATIVE AND SUPPORT SERVICE ACTIVITIES (SECTION N)

77 Rental and leasing activities


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78 Employment activities

79 Travel agency, tour operator reservation service and related activities

80 Security and investigation activities

81 Services to buildings and landscape activities

82 Office administrative, office support and other business support activities

Repair of computers and personal and household goods (SECTION 95.1)

95.11 Repair of computers and peripheral equipment

95.12 Repair of communication equipment

Financial service activities, except insurance and pension funding (Group 64.19, 64.92, 65.1, 65.2, 66.12 and 66.19)

64.19 Other monetary intermediation

64.92 Other credit granting

65.1 Insurance

65.2 Reinsurance

66.12 Security and commodity contracts brokerage

66.19 Other activities auxiliary to financial services, except insurance and pension funding


Annex - 8 NACE REV.2 CodesCODE DESCRIPTION INCLUDED NOT INCLUDED ADDITIONALLY INCL.

26.11 Manufacture of electronic components

This class includes:- manufacture of capacitors, electronic- manufacture of resistors, electronic- manufacture of microprocessors- manufacture of electron tubes- manufacture of electronic connectors- manufacture of bare printed circuit boards- manufacture of integrated circuits (analogue, digital or hybrid)- manufacture of diodes, transistors and related discrete devices- manufacture of inductors (e.g. chokes, coils, transformers), electronic component type- manufacture of electronic crystals and crystal assemblies- manufacture of solenoids, switches and transducers for electronic applications- manufacture of dice or wafers, semi-conductor, finished or semi-finished- manufacture of display components (plasma, polymer, LCD)- manufacture of light emitting diodes (LED)

This class excludes:- printing of smart cards, see 18.12- manufacture of computer and television displays, see 26.20, 26.40- manufacture of modems (carrier equipment), see 26.30- manufacture of X-ray tubes and similar irradiation devices, see 26.60- manufacture of optical equipment and instruments, see 26.70- manufacture of similar devices for electrical applications, see division 27- manufacture of fluorescent ballasts, see 27.11- manufacture of electrical relays, see 27.12- manufacture of electrical wiring devices, see 27.33- manufacture of complete equipment is classified elsewhere based on complete equipment classification

This class also includes:- - manufacture of printer cables, monitor cables, USB cables, connectors etc.

26.12 Manufacture of loaded electronic boards

This class includes:- manufacture of loaded printed circuit boards- loading of components onto printed circuit boards- manufacture of interface cards (e.g. sound, video, controllers, network, modems)

This class excludes:- printing of smart cards, see 18.12- manufacture of bare printed circuit boards, see 26.11 -

26.20 Manufacture of computers and peripheral equipment

This class includes:- manufacture of desktop computers- manufacture of laptop computers- manufacture of main frame computers- manufacture of hand-held computers (e.g. PDA)- manufacture of magnetic disk drives, flash drives and other storage devices- manufacture of optical (e.g. CD-RW, CD-ROM, DVD-ROM, DVD-RW) disk drives- manufacture of printers- manufacture of monitors- manufacture of keyboards- manufacture of all types of mice, joysticks, and trackball accessories- manufacture of dedicated computer terminals- manufacture of computer servers- manufacture of scanners, including bar code scanners- manufacture of smart card readers- manufacture of virtual reality helmets- manufacture of computer projectors (video beamers)

This class excludes:- reproduction of recorded media (computer media, sound, video, etc.), see 18.20- manufacture of electronic components and electronic assemblies used in computers and peripherals, see 26.1- manufacture of internal/external computer modems, see 26.12- manufacture of interface cards, modules and assemblies, see 26.12- manufacture of loaded electronic boards, see 26.12- manufacture of modems, carrier equipment, see 26.30- manufacture of digital communication switches, data communications equipment (e.g. bridges, routers, gateways),- see 26.30- manufacture of consumer electronic devices, such as CD players and DVD players, see 26.40- manufacture of television monitors and displays, see 26.40- manufacture of video game consoles, see 26.40- manufacture of blank optical and magnetic media for use with computers or other devices, see 26.80

This class also includes:- manufacture of computer terminals, like automatic teller machines (ATM’s), point-of-sale (POS) terminals, not- mechanically operated- manufacture of multi-function office equipment performing two or more of following functions: printing,- scanning, copying, faxing


ANN

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CODE DESCRIPTION INCLUDED NOT INCLUDED ADDITIONALLY INCL.

26.30 Manufacture of communication equipment

- This class includes the manufacture of telephone and data communications equipment used to move signals electronically- over wires or through the air such as radio and television broadcast and wireless communications equipment.- This class includes:- manufacture of central office switching equipment- manufacture of cordless telephones- manufacture of private branch exchange (PBX) equipment- manufacture of telephone and facsimile equipment, including telephone answering machines- manufacture of data communications equipment, such as bridges, routers, and gateways- manufacture of transmitting and receiving antenna- manufacture of cable television equipment- manufacture of pagers- manufacture of cellular phones- manufacture of mobile communication equipment- manufacture of radio and television studio and broadcasting equipment, including television cameras- manufacture of modems, carrier equipment- manufacture of burglar and fire alarm systems, sending signals to a control station- manufacture of radio and television transmitters- manufacture of communication devices using infrared signal (e.g. remote controls)

This class excludes:- manufacture of electronic components and subassemblies used in communications equipment, including internal/- external computer modems, see 26.1- manufacture of loaded electronic boards, see 26.12- manufacture of computers and computer peripheral equipment, see 26.20- manufacture of consumer audio and video equipment, see 26.40- manufacture of GPS devices, see 26.51- manufacture of electronic scoreboards, see 27.90- manufacture of traffic lights, see 27.90 26.4 -

26.40 Manufacture of consumer electronics

- This class includes the manufacture of electronic audio and video equipment for home entertainment, motor vehicle,- public address systems and musical instrument amplification.- This class includes:- manufacture of video cassette recorders and duplicating equipment- manufacture of televisions- manufacture of television monitors and displays- manufacture of audio recording and duplicating systems- manufacture of stereo equipment- manufacture of radio receivers- manufacture of speaker systems- manufacture of household-type video cameras- manufacture of jukeboxes- manufacture of amplifiers for musical instruments and public address systems- manufacture of microphones- manufacture of CD and DVD players- manufacture of karaoke machines- manufacture of headphones (e.g. radio, stereo, computer)- manufacture of video game consoles

This class excludes:- reproduction of recorded media (computer media, sound, video, etc.), see 18.2- manufacture of computer peripheral devices and computer monitors, see 26.20- manufacture of telephone answering machines, see 26.30- manufacture of paging equipment, see 26.30- manufacture of remote control devices (radio and infrared), see 26.30- manufacture of broadcast studio equipment such as reproduction equipment, transmitting and receiving antennas,- commercial video cameras, see 26.30- manufacture of antennas, see 26.30- manufacture of digital cameras, see 26.70- manufacture of electronic games with fixed (non-replaceable) software, see 32.40

-



26.80 Manufacture of magnetic and optical media

This class includes the manufacture of magnetic and optical recording media.- This class includes:- manufacture of blank magnetic audio and video tapes- manufacture of blank magnetic audio and video cassettes- manufacture of blank diskettes- manufacture of blank optical discs- manufacture of hard drive media

This class excludes:- reproduction of recorded media (computer media, sound, video, etc.), see 18.2

-

46.51 Wholesale of computers, computer peripheral equipment and software

This class includes:- wholesale of computers and computer peripheral equipment- wholesale of software

This class excludes:- wholesale of electronic parts, see 46.52- wholesale of office machinery and equipment, (except computers and peripheral equipment), see 46.66

-

46.52 Wholesale of electronic and telecommunications equipment and parts

This class includes:- wholesale of electronic valves and tubes- wholesale of semi-conductor devices- wholesale of microchips and integrated circuits- wholesale of printed circuits- wholesale of blank audio and video tapes and diskettes, magnetic and optical disks (CDs, DVDs)- wholesale of telephone and communications equipment

This class excludes:- wholesale of recorded audio and video tapes, CDs, DVDs, see 46.43- wholesale of computers and computer peripheral equipment, see 46.51

-

58.29 Other software publishing

This class includes:- publishing of ready-made (non-customised) software, including translation or adaptation of non-customised software for a particular market on own account:- operating systems- business and other applications

This class excludes:- reproduction of software, see 18.20- retail sale of non-customised software, see 47.41- production of software not associated with publishing, including translation or adaptation of non-customised- software for a particular market on a fee or contract basis, see 62.01- on-line provision of software (application hosting and application service provisioning), see 63.11

58.21 Publishing of computer games

This class includes:- publishing of computer games for all platforms

- -

61 Telecommunications - - -


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61.10 Wired telecommunications activities

This class includes:- operating, maintaining or providing access to facilities for the transmission of voice, data, text, sound and video using a wired telecommunications infrastructure, including: - operating and maintaining switching and transmission facilities to provide point-to-point communications via landlines, microwave or a combination of landlines and satellite linkups- operating of cable distribution systems (e.g. for distribution of data and television signals)- furnishing telegraph and other non-vocal communications using own facilities

This class excludes:- telecommunications resellers, see 61.90

This class also includes:- purchasing access and network capacity from owners and operators of networks and providing telecommunications- services using this capacity to businesses and households- provision of Internet access by the operator of the wired infrastructure

61.20 Wireless telecommunications activities

This class includes:- operating, maintaining or providing access to facilities for the transmission of voice, data, text, sound, and- video using a wireless telecommunications infrastructure- maintaining and operating paging as well as cellular and other wireless telecommunications networks. - The transmission facilities provide omni-directional transmission via airwaves and may be based on a single technology- or a combination of technologies.


This class also includes:- purchasing access and network capacity from owners and operators of networks and providing wireless telecommunications- services (except satellite) using this capacity to businesses and households- provision of Internet access by the operator of the wireless infrastructure

61.30 Satellite telecommunications activities

This class includes:- operating, maintaining or providing access to facilities for the transmission of voice, data, text, sound and- video using a satellite telecommunications infrastructure- delivery of visual, aural or textual programming received from cable networks, local television stations or radio- networks to consumers via direct-to-home satellite systems. (The units classified here do not generally originate programming material.)


This class also includes:- provision of Internet access by the operator of the satellite infrastructure



61.90 Other telecommunications activities

This class includes:- provision of specialised telecommunications applications, such as satellite tracking, communications telemetry,- and radar station operations- operation of satellite terminal stations and associated facilities operationally connected with one or more terrestrial- communications systems and capable of transmitting telecommunications to or receiving telecommunications- from satellite systems- provision of Internet access over networks between the client and the ISP not owned or controlled by the ISP,- such as dial-up Internet access etc.- provision of telephone and Internet access in facilities open to the public- provision of telecommunications services over existing telecom connections:- VOIP (Voice Over Internet Protocol) provision,- telecommunications resellers (i.e. purchasing and reselling network capacity without providing additional services)

This class excludes:- provision of Internet access by operators of telecommunications infrastructure, see 61.10, 61.20, 61.30

-

62 Computer programming, consultancy and related activities - - -

62.01 Computer programming activities

This class includes;- the writing, modifying, testing and supporting of software.- This class includes:- - designing the structure and content of, and/or writing the computer code necessary to create and implement: - systems software (including updates and patches) - software applications (including updates and patches) - databases - web pages- customising of software, i.e. modifying and configuring an existing application so that it is functional within the clients’ information system environment

This class excludes:- publishing packaged software, see 58.29- translation or adaptation of non-customised software for a particular market on own account, see 58.29- planning and designing computer systems that integrate computer hardware, software and communication- technologies, even though providing software might be an integral part, see 62.02

-

62.02 Computer consultancy activities

This class includes the planning and designing of computer systems which integrate computer hardware, software and communication technologies. Services may include related users training..

This class excludes:- sale of computer hardware or software, see 46.51, 47.41- installation of mainframe and similar computers, see 33.20- installation (setting-up) of personal computers, see 62.09- installation of software, computer disaster recovery, see 62.09

-


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62.03 Computer facilities management activities

This class includes the provision of on-site management and operation of clients’ computer systems and/or data processingfacilities, as well as related support services.

- -

62.09 Other information technology and computer service activities

- This class includes other information technology and computer related activities not elsewhere classified, such as:- computer disaster recovery services- installation (setting-up) of personal computers- software installation services

This class excludes:- installation of mainframe and similar computers, see 33.20- computer programming, see 62.01- computer consultancy, see 62.02- computer facilities management, see 62.03- data processing and hosting, see 63.11

-

63.1 Data processing, hosting and related activities; web portals

This group includes the provision of infrastructure for hosting, data processing services and related activities, as well as the provision of search facilities and other portals for the Internet.

- -

63.11 Data processing, hosting and related activities

This class includes:- provision of infrastructure for hosting, data processing services and related activities- specialized hosting activities such as: - web hosting- streaming services- application hosting- application service provisioning- general time-share provision of mainframe facilities to clients- data processing activities:- complete processing of data supplied by clients- generation of specialized reports from data supplied by clients- provision of data entry services

This class excludes:- activities where the supplier uses the computers only as a tool are classified according to the nature of the- services rendered

-

63.12 Web portals This class includes:- operation of web sites that use a search engine to generate and maintain extensive databases of Internet addresses- and content in an easily searchable format- operation of other websites that act as portals to the Internet, such as media sites providing periodically updatedcontent

This class excludes:- publishing of books, newspapers, journals etc. via Internet, see division 58- broadcasting via Internet, see division 60

-

95.1 Repair of computers and communication equipment

This group includes the repair and maintenance of computers and peripheral equipment and communicationsequipment.

- -



95.11 Repair of computers and peripheral equipment

- This class includes the repair of electronic equipment, such as computers and computing machinery and peripheral equipment. This class includes the repair and maintenance of:- desktop computers- laptop computers- magnetic disk drives, flash drives and other storage devices- optical disk drives (CD-RW, CD-ROM, DVD-ROM, DVD-RW)- printers- monitors- keyboards- mice, joysticks and trackball accessories- internal and external computer modems- dedicated computer terminals- computer servers- scanners, including bar code scanners - smart card readers- virtual reality helmets- computer projectors

This class excludes:- the repair and maintenance of carrier equipment modems, see 95.12

This class also includes the repair and maintenance of:- computer terminals like automatic teller machines (ATM’s); point-of-sale (POS) terminals, not mechanically- operated- hand-held computers (PDA’s)

95.12 Repair of communication equipment

- This class includes repair and maintenance of communications equipment such as:- cordless telephones- cellular phones- carrier equipment modems- fax machines- communications transmission equipment (e.g. routers, bridges, modems)- two-way radios- commercial TV and video cameras

- -


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Annex - 9 HS (Harmonized system) ICT Products List# HS

2002 Definition

Telecommunications equipment

1 851711 Line telephone sets with cordless handsets

2 851719 Parts for electrical apparatus for line telephony or line telegraphy

3 851721 Facsimile machines

4 851722 Teleprinters

5 851730 Telephonic or telegraphic switching apparatus

6 851750 Other apparatus, for carrier-current line systems or for digital line systems

7 851780 Other electrical apparatus, for carrier-current line systems or for Digital line systems

8 851790 Parts for carrier-current line systems or for Digital line systems

9 852020 Telephone answering machines

10 852510 Transmission apparatus for radio-telephony, radio-telegraphy, radio-broadcasting or television not incorporating reception apparatus

11 852520 Transmission apparatus for radio-telephony, radio-telegraphy, radio-broadcasting or television incorporating reception apparatus

12 852530 Television cameras

13 852610 Radar apparatus

14 852790 Other radiotelephonic or radiotelegraphic apparatus capable of receiving signals on frequencies

15 852910 Aerials and aerial reflectors of all kinds; parts suitable for use therewith

16 853110 Burglar or fire alarms and similar apparatus

17 854420 Co-axial cable and other co-axial electric conductors

18 854470 Optical fiber cables

Computer and related equipment

19 847110 Analogue or hybrid automatic data processing machines

20 847130 Portable digital automatic data processing machines, weighing not more than 10 kg, consisting of at least a central processing unit, a keyboard and a display

21 847141 Digital automatic data processing machines comprising in the same housing at least a central processing unit and an input and output unit, whether or not combined

22 847149 Other digital automatic data processing machines, presented in the form of systems


# HS 2002 Definition

23 847150 Digital processing units other than those of subheadings 8471.41 and 8471.49, whether or not containing in the same housing one or two of the following types of unit : storage units, input units, output units

24 847160 Automatic data processing machines, input or output units, whether or not containing storage units in the same housing

25 847170 Automatic data processing machines, storage units

26 847180 Other units of automatic data processing machines

27 847190 Magnetic or optical readers, machines for transcribing data onto data media in coded form and machines for processing such data, not elsewhere specified or included

28 847330 Parts and accessories of the machines of heading No. 84.71 Electronic components

Electronic components

29 850431 Transformers, electrical, dry type, power handling capacity <= 1 kVA

30 850450 Inductors

31 850490 Electrical transformers, static converters (for example, rectifiers) and inductors Parts

32 852330 Cards incorporating a magnetic stripe (unrecorded)

33 852460 Cards incorporating a magnetic stripe (recorded)

34 852990 Parts suitable for use solely or principally with the apparatus of headings Nos. 85.25 to 85.28 except aerials and aerials reflectors

35 853221 Capacitors, fixed, tantalum

36 853224 Capacitors, fixed, ceramic dielectric, multilayer

37 853230 Variable or adjustable (pre-set) capacitors

38 853310 Fixed carbon resistors, composition or film types

39 853321 Resistors, fixed, a power handling capacity <= 20 W

40 853329 Resistors, fixed, o/t heating resistors, n.e.s.

41 853331 Resistors, wirewound, variable, power handling capacity <= 20 W

42 853339 Resistors, wirewound, variable, n.e.s.

43 853340 Other variable resistors, including rheostats and potentiometers


ANN

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44 853390 Parts for electrical resistors (including rheostats and potentiometers), other than heating resistors

45 853400 Printed circuits

46 854011 Cathode-ray television picture tubes, incl. video monitor tubes, colour

47 854012 Cathode-ray TV picture tubes, incl. video monitor tubes, B and W or other monochrome

48 854020 Television camera tubes; image converters and intensifiers; other photo -cathode tubes

49 854040 Data/graphic display tubes, colour, with a phosphor dot screen pitch smaller than 0.4 mm

50 854050 Data/graphic display tubes, black and white or other monochrome

51 854060 Other cathode-ray tubes

52 854071 Microwave tubes, magnetrons

53 854072 Microwave tubes - klystrons

54 854079 Microwave tubes - Other

55 854081 Receiver or amplifier valves and tubes

56 854089 Valve and tubes, n.e.s.

57 854091 Parts of cathode-ray tubes

58 854099 Parts of thermionic or photo-cathode, valve and tubes, o/t cathode-ray tubes

59 854110 Diodes, other than photosensitive or light emitting diodes

60 854121 Transistors, o/t photosensitive, dissipation rate < 1 W

61 854129 Transistors, o/t photosensitive transistors, n.e.s.

62 854130 Thyristors, diacs and triacs, other than photosensitive devices

63 854140 Photosensitive semiconductor devices, including photovoltaic cells whether or not assembled in modules or made up into panels; light emitting diodes

64 854150 Other semiconductor devices

65 854160 Mounted piezo-electric crystals

66 854190 Parts for semiconductor devices

67 854210 Cards incorporating electronic integrated circuits (“smart” cards)

68 854221 Metal oxide semiconductors (MOS technology)

69 854221 Circuits obtained by bipolar technology



70 854221 Integrated circuits, monolithic, non digital

71 854229 Other monolithic integrated circuits

72 854260 Hybrid integrated circuits

73 854270 Electronic micro assemblies

74 854290 Parts for electronic integrated circuits and micro assemblies

Audio and video equipment

75 851810 Microphones and stands therefor

76 851821 Single loudspeakers, mounted in their enclosures

77 851822 Multiple loudspeakers, mounted in the same enclosure

78 851829 Loudspeakers, n.e.s.

79 851830 Headphones, earphones and combined microphones/speaker sets

80 851840 Audio-frequency electric amplifiers

81 851850 Electric sound amplifier sets

82 851890 Parts of microphones, loudspeakers, headphones, earphones and combined microphone/speaker sets

83 851910 Coin- or disc-operated record-players

84 851921 Record -players, w/o loudspeaker

85 851929 Record -players, n.e.s.

86 851931 Turntables with automatic record changing mechanism

87 851939 Turntables, n.e.s.

88 851940 Transcribing machines

89 851992 Pocket-size cassette-players

90 851993 Other, cassette-type

91 851999 Sound reproducing apparatus, w/o recorder, n.e.s., other

92 852010 Dictating machines not capable of operating without an external source of power

93 852032 Other magnetic tape recorders incorporating sound reproducing apparatus, Digital audio type


ANN

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94 852033 Other magnetic tape recorders incorporating sound reproducing apparatus, cassette-type

95 852039 Other magnetic tape recorders incorporating sound reproducing apparatus, cassette type

96 852090 Other magnetic tape recorders incorporating sound reproducing apparatus, other type

97 852110 Video recording or reproducing apparatus, whether or not incorporating a Video tuner - magnetic tape-type

98 852190 Video recording or reproducing apparatus, whether or not incorporating a Video tuner - other type

99 852210 Parts and accessories suitable for use solely or principally with the apparatus of headings Nos. 85.19 to 85.21 - Pick-up cartridges

100 852290 Parts and accessories suitable for use solely or principally with the apparatus of headings Nos. 85.19 to 85.21 - Other

101 852311 Magnetic tapes, unrecorded, width <= 4 mm (1/6 in.)

102 852312 Magnetic tapes, unrecorded, width > 4 mm (1/6 in.) but <= 6.5 mm (1/4 in.), e.g. cartridges 8 tracks, etc.

103 852313 Magnetic tapes, unrecorded, width > 6.5 mm (1/4 in.)

104 852320 Magnetic discs

105 852390 Other prepared unrecorded media for sound recording or similar recording of other phenomena, other than products of Chapter 37

106 852540 Still image video cameras and other video camera recorders

107 852712 Pocket-size radio cassette-players

108 852713 Other apparatus combined with sound recording or reproducing apparatus

109 852719 Radio-broadcast receivers, portable, w/o sound reproduci ng or recording apparatus

110 852721 Radio receivers with sound recording or reproducing apparatus, for motor vehicles, requiring external source of power

111 852729 Radio receivers w/o sound recording or reproducing apparatus, for motor vehicles

112 852731 Radio receivers with sound recording or reproducing apparatus n.e.s.

113 852732 Radio receivers, combined with a clock, w/o recording or reproducing apparatus, n.e.s.



114 852739 Radio-broadcast receivers, radio-telephone or radio-telegraph, n.e.s.

115 852812 Television receivers, colour

116 852813 Television receivers, black and white or other monochrome

117 852821 Video monitors, colour

118 852822 Video monitors, black and white or other monochrome

119 852830 Video projectors

Other ICT goods

120 846911 Word processing machines

121 847010 Electronic calculators capable of operation without an external source of electric power and pocket-size data recording, reproducing and displaying machines with calculating functions

122 847021 Calculating machines, electronic, with external power source, incorporating a printing device

123 847029 Calculating machines, electronic, with external power source, other

124 847040 Accounting machines

125 847050 Cash registers

126 847310 Parts and accessories of the machines of heading No. 84.69

127 847321 Parts of the electronic calculating machines of subheading No. 8470.10, 8470.21 or 8470.29

128 847350 Parts and accessories equally suitable for use with machines of two or more of the headings Nos. 84.69 to 84.72

129 852691 Radio navigational aid apparatus

130 852692 Radio remote control apparatus

131 901041 Apparatus for the projection or drawing of circuit patterns on sensitised semiconductor materials - Direct write-on-wafer apparatus

132 901042 Apparatus for the projection or drawing of circuit patterns on sensitised semiconductor materials - Step and repeat aligners


ANN

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133 901049 Apparatus for the projection or drawing of circuit patterns on sensitised semiconductor materials - Other

134 901410 Direction finding compasses

135 901420 Instruments and appliances for aeronautical or space navigation (other than compasses)

136 901480 Other navigational instruments and appliances

137 901490 Parts and accessories of direction finding compasses

138 901540 Photogrammetrical surveying instruments and appliances

139 901580 Other surveying instruments and appliances

140 901811 Electro -cardiographs

141 901812 Ultrasonic scanning apparatus

142 901813 Magnetic resonance imaging apparatus

143 901814 Scintigraphic apparatus

144 901819 Electro -diagnostic apparatus, other

145 902212 Computed tomography apparatus

146 902213 Apparatus based on the use of X-rays (for dental uses)

147 902214 Apparatus based on the use of X-rays (for medical, surgical or veterinary uses)

148 902219 Apparatus based on the use of X-rays (for other uses)

149 902410 Machines and appliances for testing metals

150 902480 Other machines and appliances for testing the hardness, strength, compressibility, elasticity or other mechanical properties of materials

151 902490 Parts for machines and appliances for testing the hardness, strength, compressibility, elasticity or other mechanical properties of materials

152 902620 Instruments and apparatus for measuring or checking pressure

153 902710 Gas or smoke analysis apparatus

154 902730 Spectrometers, spectrophotometers and spectrographs using optical radiations (UV, visible, IR)

155 902740 Exposure meters



156 902750 Other instruments and apparatus using optical radiations (UV, visible, IR)

157 902780 Other instruments and apparatus for physical or chemical analysis

158 902810 Gas meters

159 902820 Liquid meters

160 902830 Electricity meters

161 902890 Parts for gas, liquid or electricity supply or production meters, including calibrating meters therefor

162 902910 Revolution counters, production counters, taximeters, mileometers, pedometers and the like

163 902920 Speed indicators and tachometers; stroboscopes

164 902990 Parts for revolution counters, production counters, taximeters, mileometers, pedometers and the like; speed indicators and tachometers, other than those of heading No. 90.14 or 90.15; stroboscopes

165 903010 Instruments and apparatus for measuring or detecting ionising radiations

166 903020 Cathode-ray oscilloscopes and cathode-ray oscillographs

167 903031 Multimeters w/o a recording device

168 903039 Other instruments and apparatus for measuring or checking voltage, current, etc. w/o recording device

169 903040 Other instruments and apparatus, specially designed for telecommunications

170 903082 Other instruments for measuring or checking semiconductor wafers or devices

171 903083 Other instruments for measuring or checking semiconductor wafers or devices with a recording device

172 903110 Machines for balancing mechanical parts

173 903120 Test benches

174 903130 Profile projectors

175 903141 For inspecting semiconductor wafers or devices or for inspecting photomasks or reticles used in manufacturing semiconductor devices


ANN

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176 903180 Other measuring or checking instruments, appliances and machines, not specified or included elsewhere

177 903190 Parts and accessories for measuring or checking instruments, appliances and machines, not specified or included elsewhere

178 903210 Thermostats

179 903220 Manostats

180 903289 Automatic regulating or controlling instruments, e.g. process control apparatus, flow regulators, voltage transformers

181 903290 Parts and accessories for automatic regulating or controlling instruments and apparatus


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ANN

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ANN

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14 The original of the Report can be found at http://ec.europa.eu/information_society/newsroom/cf/item-detail-dae.cfm?item_id=6537

Annex - 11 Digitizing Public Services in Europe Putting Ambition in Action The EU 9th e-Government Benchmark Measurement-Turkey Report14

Top 5 e-Gov strategic priorities:1- Coordination of e-government projects in an integrated manner with

prioritizing information sharing between public agencies. 2- Prioritizing common databases, infrastructure and services. 3- Integrated and multi channel public service provision. 4- Reengineering business processes as to ensure reducing administrative and

financial burdens, eliminate duplication in investments and ensure interoperability. 5- Highlight the user orientation, user satisfaction, data privacy and protection,

participation and transparency.

Success Stories: Electronic provision of most of citizen and business services defined in Information Society Strategy of Turkey (2006-2010) has been started. Moreover, it may be argued that public agencies’ perception on e-government has turned from meeting just agency needs to whole of public understanding which pave the way for information sharing and interoperability between public agencies.

Best Practices:Tax Services: www.gib.gov.trSocial Security Premiums: www.sgk.gov.trJudiciary SMS Information Services (UYAP): www.uyap.gov.trPrime Ministry Communication Center (BİMER): www.basbakanlik.gov.tr

Key Organizational Facts

eGov positioning and scope:

Responsibility for policy formulation and coordination of implementation regarding transformation of Turkey into information society were delegated to the State Planning Organization (SPO). The SPO established the Information Society Department in February 2003 solely for coordination of the e-Transformation Turkey Project.

Key actors and lines of reporting

The e-Transformation Turkey Executive Committee that was established by a Prime Ministry Circular in December 2003 and reformed in 2007. This Committee is headed by the Minister of State (the e-Minister) whom SPO is affiliated with and


consists of a number of ministers and high level bureaucrats and the Chief Advisor to the Prime Minister. The SPO is in charge of providing secretarial support to the Committee.

Governance and development:

The overall coordination of eGovernment implementation is carried out by the SPO. Besides, to enhance the collaboration and cooperation between public agencies, the Council of Transformation Leaders was established in April 2007. The Council includes a group of selected “e-transformation leaders (the heads of the strategic planning departments of the public agencies)”, assigned to direct e-transformation efforts at the policy level in each public agency. On the other hand, TURKSAT Inc., a publicly owned international satellite and cable operator which is managed under NonGov law, has the duty of establishment and operation of the e-Government Gateway that requires coordination at technical level to be able to integrate services.

Table E11.1: Turkey in Figures

1. Key Indicators Turkey EU-27Population (in 1000) 72,561 501,103GDP per Capita in PPS 47(2008) 100GDP Growth (Percentage Variation Compared to the Previous Year) -4.5 -4.2Societal figures Unemployment (as % of active pop.) 10.5 9.6Rural Population (as % of total pop.) NA 26.3% of labor force with tertiary education 10.7 22.8% of population over the age of 65 years 7 17.2(2009)Government financial figures General government gross debt (as % of GDP) 45.4 74Public sector deficit – balance (as % of GDP) -6.7 -6.82. Information Society Indicators Turkey AB-27Overall ICT expenditure (as a % of GDP) 0.9 2.4% households with broadband connection 34 61% of enterprises with broadband 89 86eGovernment usage by individuals (%) 11 41eGovernment usage by enterprises (%) 66 753. Positioning International Benchmarks 2010(2009) Total UN e-Government Development Index 69. /184EIU Digital Economy Ranking 43.(43.) /70EIU Digital Economy Score 5.24(5.34) /104. EU Activity Participation – Pilot A epSOS


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Figure E11.1: Full Online Availability

RESULTSWith 89%, Turkey’s full online availability is above the EU average of 82%. In

the full online availability ranking, Turkey now ranks 17th out of the 32 measured countries.

The Online sophistication of public services reaches 91% of which sophistication for Business services stands at 100% (compared to 94% for the EU27+) and sophistication for Citizen services is at 85% (compared to 87% for the EU27+).

EU-27+ Turkey


Table E11.2: Online Sophistication Scores of 20 Basic Public e-Services in Turkey

Services Country Score

Administrative Level

NUTS 0 NUTS 3 NUTS 4 NUTS 5a

National Provinces Districts Main CitiesIncome taxes 100 100 Job search services 100 100 Social security benefits 90 100 Unemployment benefits 100 100 Child allowances 60 Medical costs 100 Student grants 100 100 Personal documents 80 100 25 Passports 100 100 Driver’s license 60 25 Vehicle registration 100 100 26 Building license application 25 1 4 7

Figure E11.2: Online Sophistication

75 80 85 90 95 100

EU-27+Turkey

Percentage

Citizens

Businesses

Overall


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Services Country ScoreAdministrative Level

NUTS 0 NUTS 3 NUTS 4 NUTS 5aNational Provinces Districts Main Cities

Declaration to the police 100 100 100 Public libraries 80 80 4 0 0Birth and Marriage Certificates 50 50 9 0Enrollment in higher education 100 40 Announcement of moving 100 100 Health related services 100 33 Social contribution for employees 100 100 Corporate tax 100 100 VAT 100 100 Registration of a new company 100 100 Submission of data to statistical offices 100 100 Customs declarations 100 100 Environment-related permits 100 100 Public procurements 100 100

Turkey’s eServices score 80% on usability and 100% on user satisfaction monitoring (as compared to the EU averages of 79% and 80% respectively). For eServices, usability refers to:

• Transparency of service delivery: rated at 89% (EU+: 52%)• Multi-Channel service provision: rated at 90% (EU+: 88%)• Privacy and data protection: rated at 78% (EU+: 90%)• Ease of use of services: rated at 94% (EU+: 80%)

The examined portals attain 80% on usability, 100% on adequateness of portal design and 100 % on service bundling (as compared to the EU averages of 77%, 89% and 77% respectively). Turkey’s User experience scores are summarized in Figure E11.3 and Figure E11.4:


Figure E11.3: User Experience of Services

Figure E11.4: User Experience of Portals

Transparency ofservice delivery

Ease-of-use

Usability

One-stop-shopapproach

User oriented portal design

Privacy protection

Miltichannelservice provision

User satisfaction monitoring

EU-27+

EU-27+

Turkey

Turkey


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e-Procurement

Turkey is a new entry of the 2010 eProcurement benchmarking. Turkey runs a centralized policy. An Electronic Public Procurement Platform, Elektronik Kamu Alımları Platformu (EKAP), is available since the end of 2010 and its usage is mandatory for all public authorities. At this time, the platform is still under development and some phases of the eProcurement process will only be available in the upcoming years. For the moment, Turkey is at the bottom of eProcurement benchmark for the surveyed indicators, the visibility one and the pre-award process one. The sub categories composing this score are shown in Figure E11.5:

User Empowerment

Table E11.3 illustrates to what extent the Life Event ‘Starting Up a Company’ has been moved online. The green shadings indicate those elementary services which are fully e-enabled. 1 out of 13 relevant steps is automated in Turkey (i.e. provided without the applicant having to request them; dark green shading) and 5 steps are provided online through a dedicated Business registration portal (light green shading) in Turkey.

Figure E11.5: e-Procurement Pre-award Process Benchmark by Sub-phase

EU-27+Turkey

Percentage

e-Procurement

e-Bid

e-Notification


The benchmark shows that there is room for progress in 7 out of the 13 relevant services. In fact, in 6 cases the service is not yet available online but users can find information on it, either on the dedicated Business registration portal (light orange; 1 service) or on any other web site (dark orange; 5 services). One relevant service is still offline in Turkey (red shading). In the life event assessment, it has been noted that all 13 relevant services for Turkey are provided by the government (marked Gov).

Table E11.3: Key Services for a Business Start Up Process

Confirm general management qualifications with NA

Confirm activity-specific qualifications with authorities Gov

Obtain certificate of no outstanding taxes NA

Obtain character reference NA

Obtain social security premium clearance certificate NA

Obtain certificate of no outstanding compulsory NA

Obtain certificate from bank of capital deposited NA

Fill in standard form for registration deed Gov

Register company name Gov

Registration of domicile of business Gov

Register with Commercial Court/Court of First Instance NA

Register with central/regional/local government Gov

Register with Trade Register/ Craft Register Gov

Register with Trade Association/Chamber of Commerce Gov

Obtain tax identification card/number Gov

Obtain VAT collector number

Register with Social Security Office Gov

Register with mandatory pension insurance Gov

Register with compulsory healthcare Gov

Register with the obligatory personal insurance Gov

Publish registration in Official Journal or equivalent Gov

Table E11.4 illustrates to what extent the Life Event ‘Losing and Finding a Job’ has been moved online. The green shadings indicate those elementary services which are fully e-enabled. 2 out of 25 relevant steps are automated (i.e. provided without the applicant having to request them; dark green shading) and 11 steps are provided online through a dedicated Employment portal (light green shading) in Turkey.


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The benchmark shows that there is room for progress in 12 out of the 25 relevant services. In fact, 4 services are not yet available online but users can find information on it, on the dedicated Employment portal (light orange shading). 8 relevant services are still offline in Turkey (red shading). In the life event assessment, it has been noted that 18 out of the 25 relevant services for Turkey are provided by the government (marked Gov), whilst 7 steps are provided through mixed public and NonGov provision (marked Gov+NonGov).

Table E11.4: Key Services for a Citizen Life Event: ‘loosing and finding a job’

Registering as unemployed Gov+NonGov

Registering for unemployment benefits Gov

Accessing personalized information Gov

Obtaining labor market information Gov+NonGov

Obtaining information on recruitment fairs Gov+NonGov

Being assisted by a public officer Gov

Doing a job search Gov+NonGov

Receiving ‘job alerts’ Gov+NonGov

Setting up a personal space Gov+NonGov

Creating and/or posting a CV Gov+NonGov

Eligibility of the benefits Gov

Benefits: Understanding what documents are required Gov

Ensuring continuity of medical insurance Gov

Ensuring continuity of pension payments NA

Obtaining financial aid for starting up as a self-employed NA

Obtaining financial aid for receiving contributions to Gov

Accessing social welfare appeals Gov

Obtaining a tax refund or any other tax-related benefits Gov

Subscribing to training and education programs Gov

Subscribing to vocational/careers advice Gov

Applying for a job abroad Gov

Obtaining the contact details of embassies Gov

Obtaining guidance related to housing Gov

Accessing Debt counseling services Gov

Accessing health promotion programs Gov

Obtaining guidance: invalidity, sickness, employment injuries Gov

Obtaining a new or renewing a passport Gov


Key Enablers

• Out of the 9 measured horizontal enablers, 6 are available in Turkey. These are: Single Sign-On, Authentic Sources, Open Specifications, e-Safe, Secure e-Delivery and e-Payment.

• In Turkey, there is a legal basis for the usage of authentic sources but none for architecture guidelines.

The following enablers are not yet in place: E-ID, Architecture Guidelines and a Catalogue of Horizontal enablers.

turkish information society statistics 2011

Documents

fabricated metal products

unpaid family workers

virtual reality helmets

classical high school

anatolian high school

loaded electronic boards

vocational high school

broadband subscriber penetration