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| Estonia Telecommunications Research |
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 Estonia - Digital Economy and Broadband Market - Overview, Statistics and Forecasts
Synopsis
Estonia has the highest broadband penetration rate of all the Eastern European countries. Broadband access is available via ADSL2+, FttH, cable, WiFi, WiMAX and mobile networks. The telecoms incumbent Elion is the dominant provider of ADSL services, with cable broadband the main competing platform. Widespread broadband usage has underpinned Estonia's emerging internet economy, with various e-commerce, e-government, e-education and e-health services available and widely used. The cable TV market is well developed and hence cable TV operators have been well-positioned to offer triple-play services. IPTV services have been launched by Elion. This report provides statistics and an overview of broadband market developments and trends in Estonia in 2011, as well as forecasts from 2010 to 2013 and 2020. It also includes major market developments in the country's converging media and digital economy.
Recognising the potential of applying Information & Communications Technology (ICT) to overcome obstacles to social development, Estonia has attempted to develop an internet economy to improve social wellbeing. Initial moves centred on encouraging broadband infrastructure deployment and affordability of online access, with broadband access also deployed in libraries and educational institutions. High broadband usage has ensured a high potential online market/audience, stimulating the development of broadband services.
Exhibit 1 - The Economist Intelligence Unit (EIU) annual E-readiness criteria
While there is no exact criteria for measuring the development of a country's internet economy, metrics have been created by various organisations in an attempt to measure progress. The Economist Intelligence Unit publishes annual E-readiness figures, which assess a country's ICT infrastructure and its ability to utilise ICT to gain benefit. The criteria are based on technological, economic, political and social assets of the countries surveyed.
(Source: BuddeComm based on Economist Intelligence Unit)
Estonia ranked fifth in the EIU's Q1 2011 government broadband index, assessed on the basis of government broadband planning rather than broadband capability, below only Finland and Sweden within Europe.
Development of Estonia's internet society is guided by strategy document Estonian Information Society Strategy 2013, which establishes the general framework, objectives and respective action fields for ICT application in the development of a knowledge-based society.
The strategy recognises that the public sector holds a leading role in developing the internet society, which is to be developed in a coordinated manner and for the benefit of all. The strategy aims for 70% household internet penetration by 2013, with 75% of the population using the internet. Identified actions to support this goal include developing a competitive internet access market and supporting the development of convergence technologies.
Implementation of the Estonian Information Society Strategy is through a consecutive series of two-year implementation plans drawn up annually. Each implementation plan defines priorities and targets against which projects will be measured. Each plan also presents an overview of the most significant projects with estimated costs. Actual funding is obtained through fiscal policy or EU structural funds. Estimates on expenditure over the course of the strategy's timeframe total €21 million annually.
The Implementation Plan for 2009/10 was approved in January 2009. Approximately EEK650 million has been allocated for this period. The priorities of this implementation plan include:
Improving ICT skills of and widening opportunities for participation;
Development of the e-business environment;
Development of e-government services, including information services;
Promoting large-scale uptake of electronic ID (eID) cards;
Increasing the interoperability of state information systems;
Raising the quality of statistical analysis through improved use of data in the state information system.Legislation enacted to support the internet society has mostly been done so to implement EU directives, and includes:
Digital Signatures Act (2000), which gives the digital signature equal legal value as the handwritten one and sets an obligation for all public institutions to accept digitally signed documents. This law transposes EU directive 1999/93/EC into national law.
Public Procurement Act (2000), which establishes a Public procurement State Register and covers rules for e-notification of public tenders via the Public Procurement State Register.
The Estonian Public Information Act (2000) transposes EU Directive 2003/98/EC on the re-use of public sector information. The idea of public sector information re-use emerged through the EU's recognition that the public sector is the single biggest producer of information in Europe, primarily due to the large amounts of data collected as part of government functions. This information has been recognised as possessing much value for re-use in the public domain, much of which has not been realised. Hence EU Directive 2003/98/EC was developed to encourage the reuse of such information in each country.
Personal Data Protection Act 95/46/EC.
Information Society Services Act 2000/31/EC.Government initiatives for the internet economy have been focused on providing services to citizens, businesses, and other government organisations online in the hope of capturing benefits such as improved efficiency, convenience, and better accessibility of public services.
The EU estimated in 2008 that a 25% reduction in administrative workload due to efficiencies gained through web-based public interaction by government departments could save European companies up to €78 billion per year. An estimated additional €176 billion per year can be saved through automation of back office processes within governments, given that back office information flows represent 80% of the information flows in government processes.
National level e-government policy and strategy development is the responsibility of the Ministry of Economic Affairs and Communications. Policy and strategy coordination is the responsibility of the Department of State Information Systems (RISO), the Estonian Informatics Centre (RIA) and the Estonian Informatics Council. Policy and strategy implementation is the responsibility of RISO, RIA and various government departments and agencies.
Estonia became the first country to offer internet voting nationally in local elections in 2005, with 9,300 people voting online. During 2007 Estonia held general elections during which 30,000 people voted online. The number of people voting online increased to 104,000 during 2009 local elections.
Table 1 - Uptake of e-government services by businesses - 2004 - 2011
YearPercentage of businesses using e-government services
for obtaining informationfor obtaining formsfor returning filled in forms
200478%73%54%
200566%62%50%
200666%64%54%
200774%71%58%
200875%75%62%
200977%75%63%
2010 (e)79%75%64%
2011 (e)81576%65%
(Source: BuddeComm based on EU data)
Table 2 - Uptake of e-government services by individuals - 2004 - 2011
YearPercentage of individuals using e-government services
for obtaining informationfor obtaining formsfor returning filled in forms
200414%14%13%
200529%18%17%
200627%17%17%
200727%21%20%
200836%27%27%
200945%35%35%
2010 (e)51%42%42%
2011 (e)55%45%43%
(Source: BuddeComm based on EU data)
Access to Estonia's e-government services is through web portal [www.eesti.ee]. Since launching in early 2003 the portal has been constantly renewed. Designed to offer a single integrated service, the portal allows authenticated users to:
perform transactions with municipal and government bodies;
complete and convey online forms and applications;
sign documents digitally;
create email addresses with the suffix @eesti.ee;
receive email or SMS notifications;
access to other registry services on over 20 national databases.Authentication is through the use of a national eID card.
The Public Information Act, which came into force in early 2001, ensured the right of the general public to information intended for public use and stipulated the establishment of public internet access points in public libraries all over Estonia. Broadband accounts for the majority of internet connections as competition has brought down broadband pricing to levels resulting in mass market adoption.
Designed to be the primary document for identifying citizens and residents with Estonia, the eID card is mandatory for all Estonian citizens and permanent residents over 15 years of age. It can be used in any form of business, governmental or private communications and as a travel document within the EU.
The card facilitates secure authentication and legally binding digital signatures for public and private online services through an inbuilt electronic processor chip that contains a digital signature certificate, associated PIN code-protected X.509 standard private key and a personal data file containing the cardholder's name and personal code (national ID code). All data on the inbuilt electronic processor chip as well as the eID card is valid for five years, after which a new one is issued.
A mobile version of the eID card is also available, with the data normally carried on the eID card held in a PIN code-protected mobile SIM card. Digital signing with the mobile-ID has the same legal value as that of the eID card. Launched in mid-2007 by mobile operator EMT, the main advantages of the mobile-ID include user-friendliness and convenience.
Estonia is taking part in project STORK (Secure idenTity acrOss boRders linKed). Launched by the European Commission (EC) in mid-2008 the project allows citizens from one EU member state to access the e-government services of another EU member state via PC or mobile device, thereby supporting the free movement of workers within the EU.
All government offices are connected to the government-wide backbone network (EEBone). It offers secure access to the internet and the Governments Intranet, with over 21,000 PCs in 1,300 governmental and local institutions connected. All local governments have been connected to the internet since 2000 through nation-wide project Küla Tee 1. The backbone supports services such as webcasts and online reviews and voting on proposed laws by Parliament members.
Communication between government databases is through a middle-tier data exchange layer known as X-Road. It allows users to search numerous databases through a single user interface. Documents are exchanged electronically between document management systems through a XML-based automatic data exchange.
Examples of corporate online activities include Business-to-Consumer (B2C) and Business-to-Business (B2B) e-commerce. Estonia was among the early movers in setting up internet banks; Forexbank set up the first internet bank early in 1996. It was followed by Hansapank, Estonian Savings Bank, Eesti Ühispank and Optiva Bank. At one point in 1997, there were ten internet accessible banks in Europe and three were Estonian. Since then, ICT has make significant inroads into business practices, with 90% of consumer financial transactions conducted electronically.
Table 3 - Online purchases by individuals - 2004 - 2012
YearProportion of population
20046%
20057%
20067%
20079%
200810%
200917%
2010 (e)22%
2011 (e)25%
2012 (e)29%
(Source: BuddeComm based on EU data)
Note: Estimates made in February 2011.
Internet access at libraries across Estonia was provisioned through nation-wide project Küla Tee 2.
During 2008 a ‘Laptops for Teachers' program was initiated, resulting in laptop computers procured for almost 4,100 teachers.
Table 4 - E-education usage by individuals - 2007 - 2011
YearPercentage of individuals who used the internet in the last three months
For training and educationFor consultation for learningFor an online course (any subject)
200721%n/a7%
200830%22%5%
200931%24%6%
2010 (e)32%26%7%
2011 (e)34%30%9%
(Source: BuddeComm based on EU data)
Table 5 - E-education usage by businesses - 2007 - 2011
YearPercentage of businesses by employee size which use the internet for training and education
10-49 employees50-249 employees250+ employees
200735%53%63%
200834%47%64%
200933%51%63%
2010 (e)33%53%63%
2011 (e)35%57%65%
(Source: BuddeComm based on EU data)
BuddeComm defines e-health as information relating to the use of Information and Communication Technologies (ICT) as a means of supporting health and health-related fields, with a particular emphasis on the use of high-speed networks. Other terms for e-health include tele-health, telemedicine and health informatics. For a general overview of the major e-health sectors and for more information on international developments see: Digital Media - E-Health.
A Digital Health Information System project was initiated in 2008, coordinated by the Ministry of Social Affairs and supported by EU Structural Funds. The eHealth Information System is a database designed to facilitate quality healthcare services, guarantee patients' rights and protect public health.
The eHealth Information System is comprised of a patient portal, digital imaging and digital prescriptions, with development scheduled to continue until 2013, the official deadline for the implementation of eHealth in Estonia.
Health care service providers are obliged to forward medical data to the Health Information System as of September 2008, with information processing undertaken by the Estonian eHealth Foundation. Health care service providers have to conclude a contract with the Estonian eHealth Foundation in order to be interfaced with the Health Information System.
Integrating health care service providers with the eHealth Information System is designed to provide benefits such as allowing patients to make and cancel appointments with a health care service provider online via one web portal.
MicroLink Eesti, the IT services subsidiary of Elion, was chosen as the principal contractor for the digital photo and digital prescription solution and the creator of the patient portal.
Last Update: 8 Mar 2011 Number of Pages: 18
Single User: USD $165.00 ex-GST View Table of Contents
Estonia - Key Statistics, Telecom Market and Regulatory Overviews
Synopsis
Estonia's telecom market is slowly displaying the effects of competition as alternative operators chip away at the fixed-line market share of incumbent Elion. Fixed-line telecoms infrastructure has been upgraded and geared towards offering broadband and triple-play services, with ADSL2+ and FttH networks deployed in urban areas and wireless technologies such as WiMAX used to deploy either competing infrastructure or access into rural areas. This report provides an overview of Estonia's fixed-line and IT market in 2011, presenting the major telecom operators, regulatory developments, fixed-line networks in use and offers a variety of useful and interesting performance and financial data.
Last Update: 8 Mar 2011 Number of Pages: 12
Single User: USD $140.00 ex-GST View Table of Contents
Estonia - Mobile Market - Overview and Statistics
Synopsis
Estonia's mobile market is one of the more mature in Eastern Europe, with SIM card penetration exceeding 100%. Services are offered by mobile network operators EMT, Elisa and Tele2 as well as a small number of MVNOs. WCDMA-based (3G) and HSPA networks serve as the basis for the growing mobile broadband sector, supporting a range of mobile content and applications. These developments are expected to underpin future revenue growth. This report provides a concise overview of Estonia's small and growing mobile market in 2011, covering major players, regulatory developments, services offered and a variety of statistics.
Last Update: 8 Mar 2011 Number of Pages: 14
Single User: USD $155.00 ex-GST View Table of Contents
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