Information Technology Landscape in

ESTONIA

 

About Estonia
Infrastructure
Government Policies
IT Deregulation
Internet Diffusion
Hardware
Software
Legal Environment
E-Commerce
IT Geographics
IT Financing
IT Labor Market
Transborder Data Flow
Strengths/Weaknesses
IT Impact on Business
Sources Used
About the Author

                      Telecommunications Infrastructure

Estonia inherited a poorly developed telecommunications infrastructure from the former Soviet Union. However, by the beginning of 1995, 97 telecommunications enterprises were registered in Estonia. Most of the new companies were privately owned...

Modern Infrastructure

Today, Estonia has one of the highest degrees of connectivity in Europe and ranks among the top 20 countries worldwide for teledensity as a result of the tremendous focus placed on the development of a core network infrastructure and provision of access to the general population. This was accomplished through a concession agreement with the Estonian Telephone Company. The company helped to ensure connectivity in rural and scarcely populated areas in return for lucrative urban contracts. The government is actively extending connectivity throughout the nation. By 2002, Estonia will have 300 public Internet access points providing free email and Internet access. These points will also serve as e-government access points where citizens can conduct the majority of their transactions with the public administration. Through another initiative, known as Tiger Leap, all of Estonia's schools have been connected to the Internet. Compared with just 7 percent in 1997, 36 percent of the population now has Internet access, either at home or at work. Estonia has demonstrated how leapfrog technologies can be employed effectively: 40 percent of the Estonian population is already utilizing GSM services. Estonian mobile operators were among the first in the world to introduce WAP services to their customers. (Creating a Development Dynamic Report)

Investments flowing from public as well as private sectors have greatly improved Estonian telecommunications infrastructure over the years. Today, there are direct cable connections to Sweden and Finland and links to the neighboring Russia and Latvia, which significantly improve data transmission capabilities and network capacities. Moreover, several large firms in Estonia have joined forces in an effort to develop the country's Internet system to the degree when it would be accessible to the majority of Estonian residents. This effort will require additional investment of at least 250 million kroons (US$ 19.3 mln.) over the next three years. (CEEBICnet Market Research)

Telecommunications operators have the greatest influence on the developments of the informational infrastructure in the country. The major companies are: 

 Eesti Telefon - a dominant company on the market

AS Eesti Mobiiltelefon, Radiolinja Eesti and Ritabell -- smaller companies that compete on a mobile phone market.  Estonia now has two mobile communication networks, one based on the NMT-450 standard and the other on the GSM standard.

Through alternative communications networks, telecommunications services could be provided also by railway company AS Eesti Raudtee, gas company AS Eesti Gaas and energy company AS Eesti Energia. 

There are also several cable TV service providers, which are capable of providing telecommunication services and playing an important role in shaping the Estonian information infrastructure. The most important of them are Levicom Broadband, AS Tallinna Kaabeltelevisioon, Levi Kaabel, Starman Kaabeltelevisiooni AS, AS STV Kaabeltelevisioon and AS Telset.  (Estonian CEEC Review report on information society)

Key Facts

40% of Estonia’s population is connected to the Internet
95% of Estonian civil servants have a computerized workplace
All Estonian schools are connected to Internet
There are over 90 Public Internet Access Points all over Estonia
Mobile telephone transmitting networks cover more than 99% of Estonian populated area, 40% of population have mobile phones (Estonia Today)

 

 

Regulation

The Ministry responsible for telecommunications is the Ministry of Transport and Communications (http://www.tsm.ee). It develops national communications policies in co-ordination with other government bodies and local governments, develops national programs, drafts regulations and analyses the legislation in the telecommunications areas and coordinates the development of standards. Its functions cover also participation in the development of telecommunications-related pricing policy, development and co-ordination of international co-operation in the area of telecommunications and arrangement of the licensing procedures.

 

 

 

Last Updated 12/13/2001 by Alec Snetkov alec_snetkov@yahoo.com