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8 SPECIAL ARTICLE: Findings from a pilot 1998-99 ICT satellite account

On 5 March 2003, the ABS released a paper titled 'An Information and Communication Technology Satellite Account' in the publication Australian National Accounts: National Income, Expenditure and Product, December Quarter 2002 (cat. no. 5206.0). The paper outlines the work the ABS has undertaken to develop frameworks, concept and potential outputs for an ICT satellite account.

The paper also included findings from a pilot study for Australia for the period 1998-99, and developments for the 2002-03 ICT satellite account. The pilot study was possible because of the extensive range of ICT related data that the ABS covers in its collections. However, because of output quality, a number of data gaps needed to be filled using assumptions or conjecture. The study is exploratory in nature, and estimates should be used carefully. These data gaps will be addressed for the 2002-03 ICT satellite account.

Key findings from the pilot study for 1998-99 are as follows:

• Over $70 billion of ICT products (either locally produced or imported) entered the Australian economy in 1998-99. Computer and communications hardware comprised the majority of this amount, and were mostly imported.
  
• ICT contributed approximately 4.9% to total gross value added at basic prices (for all industries). Businesses in the communications services industry contributed more to ICT gross value added than all other businesses in all industries. See the table below for more information.
  
• 44% of ICT products were taken up as gross fixed capital formation by businesses and government, 36% were used by businesses as intermediate consumption, and 15% were consumed direct by households. ICT products contribute 22% of total gross fixed capital formation.
  
• Phone carrier and Internet provider services comprise the majority of household consumption of ICT products.
  
• The property and business services industry had the highest expenditure on ICT goods and services in 1998-99. This industry covers accounting, legal, computing and business services, scientific research, property operators and developers and real estate agents. This industry was followed by manufacturing; government administration and defence; finance and insurance; and communication services.

1998-99	ICT output ($m)	Value Added ($m)	Percentage of total industry gross value added (%)
ICT characteristic industries (a):
Manufacturing	3,021	983	0.2
Wholesale trade	8,070	1,534	0.3
Communication services	25,321	14,090	2.6
Other computer services	9,857	4,380	0.8
Other industries:
Other	11,143	5,695	1.1
Total	57,412	26,682	4.9