Ireland ranks badly for digital skills, fixed broadband costs

European Commission study places Ireland in 8th out of 28 states for digital economy

Ireland lags far behind most other EU member states when it comes to digital skills, according to a new European Commission survey which calls for measures to address the issue.

The latest Digital Economy and Society Index (DESI), which was published on Thursday, ranks Ireland 8th out of 28 Member States. This places the country in the 'lagging ahead' category, meaning it performs slightly above the European Union average, but has improved at a slower rate than the EU as a whole.

Countries in the lead ‘running ahead’ category are Austria, Estonia, Germany, Malta, the Netherlands and Portugal.

The study, which measures the progress of EU member states towards a digital economy and society, looks at more than 30 indicators across five broad areas: connectivity; human capital/digital skills; use of internet; integration of digital technology; and digital public services.

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According to the latest index, Ireland performs particularly badly when it comes to digital skills. Just 44 per cent of the population is deemed to have sufficient skills to operate effectively online, compared to 55 per cent of the EU average. The report also says more progress is needed to boost the number of skilled ICT professionals in the economy as well as the integration of some digital technologies by enterprises.

Broadband access

The study finds some improvement with next-generation access and take-up of fast broadband having jumped and use of internet services such as online banking and social networking sites also rising.

In terms of connectivity, Ireland’s performance has risen from 16th place to 13th since last year. The index notes that while 96 per cent of households are now covered by fixed broadband, this is still somewhat below the EU average. Moreover, fixed broadband costs are still almost double the EU average, unchanged since last year.

Next-generation access has grown from 71 per cent of households in 2014 to 80 per cent last year the survey finds, while subscriptions to fast broadband services increasing from 45 per cent to 51 per cent.

Ireland has fallen two places in the ‘human capital’ category and now ranks 10th among EU countries, due largely to the country’s poor performance in digital skills, where it is ranked in 22nd place out of 28 countries.

The survey also notes that Ireland is lacking skilled ICT professionals despite the fact that the number of science, technology, engineering and mathematics (STEM) graduates is above the EU average and that the proportion of IT specialists in total employment is relatively high.

In terms of internet usage, Ireland is ranked 14th, up one place compared to last year with use of news, social networking and banking services having risen since 2015. According to the index, the most popular online activities among Irish internet users is video-on-demand (VoD).

Ireland comes in top spot for integration of digital technology in the EU, up from 3rd place in 2015. However, the report says businesses could better exploit the opportunities offered by electronic information sharing and RFID.

Lastly, the country ranks 9th for digital public services, down one place on last year. While eGovernment use is significantly above the EU average, provision of pre-filled forms is relatively low. Ireland comes in 9th spot for online service completion and in 10th for open data, which is above the EU average but a decline versus 2015.

Charlie Taylor

Charlie Taylor

Charlie Taylor is a former Irish Times business journalist