2015 Annual Survey of Philippine Business and Industry (ASPBI) - Information and Communication Sector For All Establishments: Final Results

Reference Number: 2018-155
Release Date: 05 June 2018

Internet access in facilities open to the public service activities industry leads the sector

Final results of the 2015 Annual Survey of Philippine Business and Industry (ASPBI) showed that a total of 2,823 establishments in the formal sector of the economy were engaged in Information and Communication activities.

Across industries, internet access in facilities open to the public service activities led the sector in terms of number of establishments with 769 establishments (27.2%). This was followed by computer programming activities with 542 establishments (19.2%). Radio broadcasting and relay station and studios ranked third with 313 establishments (11.1%). Figure 1 shows the percentage distribution of establishments for the sector by industry sub-class in 2015.

Computer programming activities industry employs the highest number of workers

The sector provided employment to 148,507 workers in 2015, of which paid employees 99.9 percent or 147,759 workers.

Among industry sub-class, computer programming activities generated the largest number of employees with 39,503 workers (26.6%). Data processing followed with 17,684 workers (11.9%). Ranked third was mobile telecommunications services with 14,829 workers (10.0%). Figure 2 presents the distribution of employment for the sector by industry sub-class in 2015.

Computer programming activities industry pays the highest compensation

Total compensation paid by information and communication sector amounted to PHP86.8 billion, translating to an average annual compensation of PHP587.6 thousand per employee

At the industry level, more than one-fourth (29.4%) of the total compensation was paid by computer programming activities amounting to PHP25.5 billion. Wired (landline) services placed second with PHP12.8 billion or 14.7 percent of the total compensation. Ranked third was the mobile telecommunications services with PHP11.0 billion (12.7%)

News agency activities industry paid the highest average annual compensation of PHP1.58 million per employee, closely followed by wired (landline) services with PHP1.56 million per employee. Television program production came in third with PHP1.32 million per employee.

Figure 3 displays the average annual compensation for information and communication establishments by industry sub-class in 2015.

Mobile telecommunications services industry generates the biggest share in income and expense

In 2015, gross income earned by the information and communication sector was estimated at PHP571.8 billion.

Among industries, gross income was largely contributed by mobile telecommunications services, which amounted to PHP216.0 billion or 37.8 percent. This was followed by wired (landline) services with PHP95.2 billion (16.6%). Computer programming activities came in third with PHP62.7 billion (11.0%).

Meanwhile, the sector incurred a total expense of PHP483.4 billion for the year.

Mobile telecommunications services, the major income contributor, was also the leading industry that incurred the largest proportion in expense sharing 38.0 percent of the total expense amounting to PHP183.5 billion. This was followed by wired (landline) services and computer programming activities with PHP65.5 billion (13.5%) and PHP58.2 billion (12.0%), respectively.

Figure 4 illustrates the income and expense for information and communication establishment by industry sub-class in 2015.

Income-expense ratio for the sector stands at 1.18

Income per expense generated by the sector stood at 1.18. This means that for every peso spent a corresponding income of PHP 1.18 was generated.

Among industries, application hosting services recorded the highest income-expense ratio of 1.65, followed by motion picture projection activities and wired (landline) services with ratios of 1.48 and 1.45, respectively.

Value added amounts to PHP227.7 billion

Value added for the sector was estimated at PHP227.7 billion in 2015. Combined share of the top three industries comprised 65.3 percent of the total. Mobile telecommunications services registered the highest value added with PHP78.7 billion (34.6%). Wired (landline) services followed with PHP38.0 billion (16.7%) and computer programming activities came in third with PHP32.0 billion (14.0%).

Wired internet access service activities industry records the highest labor productivity

Value added per employee, a measure of labor productivity, was estimated at PHP1.5 million per worker. Among industries, wired internet access service activities (e.g. dsl, leased line, dial-up) had the highest labor productivity of PHP26.4 million per worker while internet access in facilities open to the public service activities recorded the least with PHP153.5 thousand per worker.

Gross addition to fixed assets reaches PHP68.2 billion

Gross addition to fixed assets (capital expenditures less sale of fixed assets) acquired by the sector reached PHP68.2 billion in 2015.

The top three leading industries contributed a total share of 86.5 percent of the total or PHP58.9 billion. Topping the list was mobile telecommunications services with gross additions to fixed assets of PHP44.3 billion. This was followed by wired (landline) services and satellite telecommunications activities with PHP11.1 billion and PHP3.5 billion, respectively.

Wired internet access service activities industry tops total change in inventories

Change in inventories, defined as the value of ending less beginning inventory, was recorded at negative PHP893.0 million in 2015.

Across industries of the sector, wired internet access service activities (e.g. dsl, leased line, dial-up) had the highest change in inventory amounting to PHP322.2 million. This was followed by book publishing with a share of 34.5 percent or PHP307.9 million.

Government grants PHP618.3 million subsidies

Subsidies are all special grants in the form of financial assistance or tax exemption privilege given by the government to aid and develop an industry. The total subsidies granted to the sector reached PHP618.3 million in 2015.

Among industries, television broadcasting and relay stations and studios including closed circuit television services received the highest subsidy amounting to PHP583.7 million.

Two other industries that received subsidies in 2015 were the following:

  • Wired (landline) services, PHP26.3 million
  • Other information technology and computer service activities, PHP8.4 million

Sales from e-commerce post PHP2.0 billion

Sales from e-commerce refer to the selling of products or services over electronic systems. In 2015, the sector generated e-commerce sales of PHP2.0 billion.

Among industry sub-classes, wired (landline) services recorded the highest sales through e-commerce at PHP910.3 million or 45.5 percent of the total. Computer programming activities followed with PHP617.4 (30.9%). Computer consultancy and computer facilities management activities came in third with PHP169.8 (8.5%).


 

TECHNICAL NOTES

 

Introduction

This Special Release presents the final results of the 2015 Annual Survey of Philippine Business and Industry (ASPBI) for all Information and Communication (Sector J) establishments.

The 2015 ASPBI is one of the designated statistical activities of the Philippine Statistics Authority (PSA). Data collected from the survey provide information on the levels, structure, performance, and trends of economic activities of the formal sector in the entire country for the year 2015. The 2015 Survey on Information and Communication Technology (SICT) was undertaken as a rider to this survey.

The survey was conducted nationwide in 2016 with the year 2015 as the reference period of data, except for employment which is as of November 15, 2015.

Establishment Data Management System (EDMS) was still utilized in the decentralized processing of 2015 ASPBI questionnaires in the province as well as the online accomplishment of questionnaire through the PSA website.

Data are presented at the national sub-class or 5-digit 2009 Philippine Standard Industrial Classification (PSIC)..

Legal Authority

The conduct of the 2015 ASPBI is authorized under Republic Act 10625 known as the Philippine Statistical Act of 2013 - Reorganizing and strengthening of the Philippine Statistical System (PSS), its agencies and instrumentalities.

Scope and Coverage

The 2015 ASPBI covered establishments engaged in 18 economic sectors classified under the 2009 PSIC, namely:  

  • Agriculture, Forestry and Fishing (A)
  • Mining and Quarrying (B)
  • Manufacturing (C)
  • Electricity, Gas, Steam, and Air Conditioning Supply (D)
  • Water Supply; Sewerage, Waste Management and Remediation Activities (E)
  • Construction (F)
  • Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles (G)
  • Transportation and Storage (H)
  • Accommodation and Food Service Activities (I)
  • Information and Communication (J)
  • Financial and Insurance Activities (K)
  • Real Estate Activities (L)
  • Professional, Scientific and Technical Activities (M)
  • Administrative and Support Service Activities (N)
  • Education (P)
  • Human Health and Social Work Activities (Q)
  • Arts, Entertainment and Recreation (R)
  • Other Service Activities (S)

The survey was confined to the formal sector of the economy, which consists of the following:  

  •  Corporations and partnerships
  •  Cooperatives and foundations
  •  Single proprietorship with employment of 10 and over
  •  Single proprietorship with branches

Hence, the 2015 ASPBI covered only the following economic units:

  • All establishments with total employment (TE) of 10 or more, and;
  • All establishments with TE of less than 10, except those establishments with Legal Organization = 1 (single proprietorship) and Economic Organization = 1 (single establishment), that are engaged in economic activities classified according to the 2009 Philippine Standard Industrial Classification (PSIC).

Frame of Establishments

The frame for the 2015 ASPBI was extracted from the 2015 List of Establishments (LE). The estimated number of establishments in operation in the country in 2015 totaled to 909,786. About 259,386 establishments (29.0% of the total establishments) belong to the formal sector of which 223,821 (86.3%) comprised the establishment frame. This frame was used to draw the sample establishments for the survey.

Unit of Enumeration

The unit of enumeration for the 2015 ASPBI is the establishment. An establishment is defined as an economic unit under a single ownership or control which engages in one or predominantly one kind of activity at a single fixed location. 

Classification of Establishments

An establishment is categorized by its economic organization, legal organization, industrial classification, employment size and geographic location.

Economic Organization refers to the organizational structure or role of the establishment in the organization. An establishment may be single establishment, branch, establishment and main office with branches elsewhere, main office only, and ancillary unit other than main office. 

Legal Organization refers to the legal form of the economic entity which owns the establishment. An establishment may be single proprietorship, partnership, government corporation, stock corporation, non-stock corporation, and cooperative. 

Industrial Classification of an economic unit was determined by the activity from which it derives its major income or revenue. The 2009 PSIC which was approved for adoption by government agencies and instrumentalities through NSCB Resolution No. 2 Series 2010 was utilized to classify economic units according to their economic activities.

Size of an establishment is determined by its total employment (TE) as of specific date. Total employment (TE) refers to the total number of persons who work in or for the establishment.

This includes paid employees, working owners, unpaid workers and all employees who work full-time or part-time including seasonal workers. Included also are persons on short term leave such as those on sick, vacation or annual leaves and on strike.

Geographic Classification  refers to the grouping of establishments by geographic area using the Philippine Standard Geographic Code (PSGC) classification. The PSGC contains the latest updates on the official number of regions, provinces, cities, municipalities, and barangays in the Philippines. The PSGC as of December 31, 2015 was used for the 2015 ASPBI.

 

Sampling Design

The 2015 ASPBI uses a stratified systematic sampling with 3-digit or 5-digit PSIC serving as industry strata and employment size as the second stratification variable. The selection of sample establishments is done independently by stratum using systematic sampling.

 

Estimation Procedure for Establishments with TE of Less Than 20

a. Non-Certainty Stratum

    The estimate of the total of a characteristic for the non-certainty employment stratum TE less than 20 in the sth industry domain was

 

where:

 s   = denotes the non-certainty employment strata in TE of less than 20

 Xsj = value of the jth establishment in non-certainty employment stratum in TE of less than 20 in Sth industry domain

 j      =  1,2,3..., ns establishments

 Wsj = weight of the jth establishment in the non-certainty employment stratum of less than 20 in the sth industry domain

 

 Ns  = total number of establishments in the non-certainty employment stratum in TE of less than 20 in the sth industry domain

ns  = number of sample establishments in the non-certainty employment stratum in TE of less than 20 in sth domain

 

b. Certainty Stratum

    The total of a characteristic for the certainty employment stratum in the Cth industry domain was

where:

 c   = denotes the certainty employment strata in TE of less than 20 in the cth industry

 xcj = value of the jth establishment in the certainty employment strata in TE of less than 20 in the cth industry domain

 j      = 1,2,3,..., mc establishments 

 mc  = number of establishments in the certainty employment strata in TE of less than 20 in the cth industry domain

 

c. Total Estimate for TE of Less Than 20

 For all sections except B and C, national level estimates of the total of a characteristicfor the industry domain was obtain by aggregating the estimates for all employment strata (non-certainty and certainty) in the same industry domain,

where  d  denotes the industry domain.

 

 Estimation Procedure for Establishments with TE of 20 and Over

 a.  Non-Certainty Stratum (strata of TE 20 to 49 and TE 50 to 99) for Sections A,C,E,F,G, H, I, J, K, L, M, N, P, Q, R and S.

       The estimate of the total of a characteristic  for the non-certainty employment strata in TE of 20 and over for an industry domain in each region 

 

where:

      s = denotes the non-certainty employment strata in TE of 20 to 49 and TE 50 TO 99        

      p = 1, 2,..., 18 regions (geographic domains)        

   Xspj = value of the jthestablishment in the non-certainty employment strata with TE of 20 to 49 and TE 50 to 99 for an industry domain in each region  

       j = 1,2,3,..., nsp establishments                                                 

  Wspj = weight of the jth establishment in the non-certainty employment strata with TE of 20 to 49 and TE 50 to 99 for an industry domain in each region                                                                                                                                                                                      

   Nsp = total number of establishments in the non-certainty employment strata in TE of 20 and over for an industry domain in each region

    nsp = number of sample establishments in the non-certainty employment strata in TE of 20 and over for an industry domain in each region

 

   b.  Certainty Stratum (Establishments under the following: Section B and D, ICT core industries, BPM industries, GOCC's and with TE 100 and over)

       The estimate of the total of a characteristic for the certainty employment stratum in an industry domain in each region

where:

       c = denotes the certainty employment strata in TE of 20 and over        

       p = 1,2,...18 regions (geographic domains)

   Xcpj = value of the jthestablishment in the non-certainty employment strata in TE of 20 and over for an industry domain in each region 

       j = 1,2,3,..., mcp establishments                                                 

  mcp = number of establishments in the certainty employment strata in TE of 20 and over in an industry domain within each region

 

   c.  Total Estimate for TE of 20 and Over 

The estimate of the total of a characteristic  for the industry domain in each region (geopraphic domain) was obtained by aggregating the estimated for all employment strata  (non-certainty and certainty) in the same industry domain,

 

where dp denotes the industry domains in each region

National level estimate of the the characteristic by industry domain were obtained by aggregating separately the estimates  for  the particular industry domain from all the regions,

 

Weight Adjusment Factor for Non-Response

To account for non-response in the non-certainty strata, the adjusment factors, and (n/n') was multipled with the sampling weight (W) of each of the sampling unit. The sampling weight which is defined as N/n was recomputed as

Thus, the adjusted weight (W'spj) for the non-certainty employment stratum for the industry domain with TE 20-99 was

Where:

 Nsp = total number of establishments in the non-certainty employment stratum with TE 20-99 for the industry domain within each geographic domain (region)

 n'sp = number of responding establishments in the non-certainty employment stratum with TE of 20-99 for the industry domain within each geographic domain (region)

 

Response Rate

Response rate for all sample establishments under Information and Communication sector was 95.2 percent (3,573 out of 3,754 establishments). This included receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments.

Of the total responses, 135 establishments responded online.

Reports of the remaining non-reporting establishments were taken from other available administrative data sources and financial statements from Securities and Exchange Commission (SEC). However, there were establishments which were found to be duplicates, out-of-scope and out of business in 2015.

Limitation of Data

Only the formal sector was covered in the survey.

 

Concepts and Definitions of Terms

 

Establishment  is as an economic unit under a single ownership control, i.e., under a single entity, engaged in one or predominantly one kind of economic activity at a single fixed location.

Economic activity is the establishment’s source of income. If the establishment is engaged in several activities, its main economic activity is that which earns the biggest income or revenue.

Total employment is the number of persons who worked in for the establishment as of November 15, 2015.

Paid employees are all persons working in the establishment and receiving pay, as well as those working away from the establishment paid by and under the control of the establishment. Included are all employees on sick leave, paid vacation or holiday. Excluded are consultants, home workers, receiving pure commissions only, and workers on indefinite leave.

Compensation is the sum of salaries and wages, separation/retirement/terminal pay, gratuities, and payments made by the employer in behalf of the employees such as contribution to SSS/GSIS, ECC, PhilHealth, Pag-ibig, etc.

Salaries and wages are payments in cash or in kind to all employees, prior to deductions for employee’s contributions to SSS/GSIS, withholding tax, etc.  Included are total basic pay, overtime pay and other benefits.

Income or Revenue refers to cash received and receivables for goods/products and by-products sold and services rendered. Valuation is at producer prices (ex-establishment) net of discounts and allowances, including duties and taxes but excluding subsidies.

E-commerce refers to the selling of products or services over electronic systems such as Internet Protocol-based networks and other computer networks. Electronic Data Interchange (EDI) network, or other on-line system. Excluded are orders received from telephone, facsimile and e-mails.

Expense refers to cost incurred by the establishment during the year whether paid or payable. This is treated on a consumed basis. Valuation is at purchaser price including taxes and other charges, net of rebates, returns and allowances. Goods and services received by the establishment from other establishments of the same enterprise are valued as though purchased.

Value added is  gross output less intermediate input. Gross output for Information and Communication sector is the sum of the total income (less interest income, rent income from land, dividend income, royalty income and franchise income), capital expenditures of fixed assets produced on own account and change in inventories.  Intermediate input is equal to the sum of the following expense items: materials and supplies purchased; fuels, lubricants, oils and greases purchased; electricity purchased, water purchased; industrial services done by others;  non-industrial services done by others (less rent expense for land); goods purchased for resale; research and development expense; environmental protection expense; royalty fee; franchise fee; and other expense.

Gross additions to tangible fixed assets  is equal to capital expenditures less sale of fixed assets, including land.

Change in inventories is equivalent to the value of inventories at the end of the year less the value of inventories at the beginning of the year.

Inventories refer to the stock of goods owned by and under the control of the establishment as of a fixed date, regardless of where the stocks are located. Valuation is at current replacement cost in purchaser prices. Replacement cost is the cost of an item in terms of its present price rather than its original cost.
 
Subsidies are all special grants in the form of financial assistance or tax exemption or tax privilege given by the government to aid and develop an industry.
 

 


 

See more at the Annual Survey of Philippine Business and Industry (ASPBI) landing page.