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Following a report of May 2014, DG CONNECT and the Eurostat Information Society Working Group agreed to create and publish a „Digital Skills Indicator” based on the Digital Competence Framework, and to be populated with data collected through the ICT survey on ICT usage by Households and Individuals. The indicator covers four competence domains: information, communication, content creation and problem solving. This document presents the methodology used to define and compute the indicators for each of the four domains and for the overall indicator.