• The national government and various other agencies of government, including LGUs, are mandated under Republic Act No. 8792 to be Electronic Commerce ready within a specified period of time. Specifically, Section 27 of the E-Commerce Act directs all agencies of government, including LGUs, to use electronic means in government transactions within two years from the effectivity of the Act signed into law last June 14, 2000. More than three years after the E-Commerce Act was signed, several indicators were gathered from various agencies particularly from the National Computer Center to determine the state of readiness of Mindanao LGUs for E-Governance. Here are some of the key indicators we have found:
   

A. Mindanao LGUs with websites

• Of the 457 LGUs in Mindanao, 279 or 61% have already published their own websites. Although most of these websites are classified as Stage 1 websites, it is still worth-noting that more and more LGUs in Mindanao are now conscious of utilizing the website as a medium for information dissemination.
• Under the United Nations-American Society of Public Administration’s (UN-ASPA) five stages of E-Government, Stage 1 websites have static pages which mean that these are simple websites that contain one or few pages of general information on an LGU. There are no interactive functionalities in them. In contrast, in Stage 2 or Stage 3 websites, users can access web-based databases and can provide feedback by filling-up forms through the site.

• UN-ASPA classifies website as follows: Stage 1,  Static Web Presence, Stage 2,  Enhanced Web Presence, Stage 3, Interactive Web Presence, Stage 4, Transactional Web Presence and Stage 5, Fully Integrated Web Presence. This means that websites with higher numbers such as 4 or 5, users of the websites could already make online transactions such as online payment and do electronic commerce.

• Looking at the regional breakdown, Regions IX and Caraga have the highest percentages of LGUs web presence at 83% and 87% respectively.  
• ARMM has the lowest rate in terms of the number of LGUs with websites at 12%. The low participation of ARMM LGUs in publishing websites may be attributed to several reasons such as lack of adequate telecommunications infrastructure, lack of ISP and lack of IT skills in the area.
• The establishment of web presence for LGUs is one of the six components of the e-LGU project which is implemented by the National Computer Center-Field Operations Office (NCC-FOO). The NCC-FOO developed web templates that would assist LGUs in establishing their own websites. They also conduct training to interested LGUs on how to develop their own websites. The LGU, on the other hand provides the information that will be needed in creating and updating the website. Likewise, the LGU provides the financial support in publishing and maintaining their own website.  The e-LGU project aims to make all LGUs in the country online by the end of the initial project year (2003).

B. Internet Connection and Usage

• Region XI has the most number of Internet connections considering the presence of various Internet Service Providers (ISP) such as Mozcom, Infocom, SkyInternet, etc. in the cities of Davao and Tagum. Region X and Caraga have the second highest number of Internet connections.
• Most of the LGUs are connected through dial-up Internet connections.
   

• Majority of LGUs cited No ISP in their locality as the main reason why they can not connect to the Internet. The other top reason is because of lack of budget.
• In terms of Internet usage, LGUs surveyed cited E-mail as the main purpose of connecting to the Internet at 33%, followed by Research, E-Commerce, Chat, Discussions and Advertisements, in that order as shown in the pie chart.
   

• Online transactions are still few among the LGU users because of the problem of speed and security. Addressing these problems would encourage more users to transact electronically.
   

A. Hardware/Equipment

• The table shows the total no. of computer units by size (microcomputer, mini-computer, mainframe) among the offices of Mindanao LGUs surveyed.
• Microcomputers which include desktops, laptops and notebooks account almost all computers used by LGUs in Mindanao as shown in the adjacent table.
   

• In a recent NCC survey conducted, it was found out that five (5) of the thirteen (13) LGUs with no computer units are in Mindanao. The Mindanao LGUs with no single computer unit are listed below.
   

• On a nationwide basis, the cities of Davao, Tagum and Zamboanga ranked no. 2, no. 8 and no. 10 respectively among the cities while Agusan del Sur and South Cotabato ranked no. 4 and no. 5 respectively, among the provinces which have the most number of units.
   

• On a national scale, Tampakan, South Cotabato and Kapalong, Davao del Norte, two (2) municipalities from Mindanao were included in the top ten municipalities in terms of the number of computer units with rank no. 5 and no. 6 respectively.
   

B. Local Area Network (LAN)

• LAN refers to any connection of computers within one building, unit or office   while WAN (Wide Area Network) refers to one network connecting to another network outside one building or office.  The following table shows the result of the survey in terms of LAN inventory among Mindanao LGUs.
• All the Mindanao regions have LANs with Region XI (20) and Region X (18) leading in the number of LANs while ARMM (1) have the least number.
• Most of those without LANs, around 26 LGUs intend to set up LANs in 2003 while 12 said they would do so in 2004 and beyond.
• Only  1 LGU in Mindanao is part of a wide-area network (WAN).

• Based on the indicators that were gathered, Mindanao LGUs have started to make a headway in embracing ICT.   However, compared to the other regions in the country, some areas in Mindanao particularly in ARMM have lagged behind in terms of ICT infrastructure.  Likewise, most Mindanao LGUs are struggling to comply with the E-Commerce Act because of the many challenges that hinder them to jump into ICT bandwagon such as the absence of adequate telecommunications infrastructure in some areas, the high cost of IT solutions packages available in the market and the lack of funds to finance ICT projects.  
• Given the current state of computerization among Mindanao LGUs, the government and private sectors in Mindanao have to double their efforts in advocating ICT development if Mindanao has to comply with the E-Commerce Act.    The Mindanao ICT Task Force, a private-public partnership that aims to ensure that ICT development will be given high priority, may be tapped for this purpose.  The MICTF is a good venue for Mindanao stakeholders to discuss issues and recommend solutions affecting the ICT sector.  
•  There are several ongoing ICT-related projects that may be tapped to improve Mindanao’s ICT infrastructure and to strengthen LGUs ICT capability.  Aside from the e-LGU project of NCC, there is also a project called PCs for Public Schools and LGUs which is being implemented by DTI and DOST.  The project aims to provide computers and IT training to the academe and LGUs.  Likewise, donor agencies like CIDA and USAID have capability building programs that can be tapped to improve IT literacy and skills of Mindanaoans.