Advanced technology

Considerations for the investor:

  • Highly educated, skilled and low cost labour in ICT services offers profitable business opportunities
  • Well-developed telecommunications and digital infrastructures offer a superior environment for business operation
  • Favourable legislation and stable environment

Since 2000 there have been remarkable developments in the Estonian ICT sector, which have led Estonia to be one of the most advanced countries in ICT, both in CEE and Western Europe.  In the field of Internet and data communications, significant investments have been made in the infrastructure of telecommunications, with fibre optic cables covering the whole country, and direct undersea connections to Finland and Sweden and links to Russia and Latvia, guaranteeing high-standard communications.

Key points of ICT development in Estonia:

  • Income tax declarations can be made electronically via internet. In 2009, over 91% of income tax declarations were presented through the e-Tax Board.
  • 58% of households having Internet and 80% Internet banking (Summer 2008)
  • 66% of the population aged 16-74 years uses the internet (Statistics Estonia, 2008)
  • e-elections (local 2005, national 2007)
  • The Government is using web-based document system (since August 2000)
  • Cabinet meetings have been changed to paperless sessions using a web-based document system.
  • Expenditures made by the government can be followed on the internet in real time.
  • All Estonian schools are connected to the Internet, as a result of state-run “Tiger Leap” program
  • A network of Public Internet Access Points covers most of Estonia's cities and towns.
  • In addition to Public Internet Access Points, it is possible for laptop users to utilise rapid wi-fi internet connections in more than 1100 public places; in many places that service is free of charge. The area of wi-fi internet is constantly growing and encompasses all of Estonia.
  • e-billing (since July 2000)
  • Mobile parking project (July 1, 2000)
  • World’ first MPS (Mobile Positioning System) project for society (since May 3, 2000)
  • Digital Signature Act came into force (since December 2000)
  • ID card - new primary domestic identification document (since January 2002)
  • Mandatory internet based reporting starting 1 January 2010
  • Skype – internet telephone
  • There are more mobile phone contracts than residents - 147 per 100 people (Statistics Estonia, 2008).
  • Estonia is completely covered by digital mobile phone networks.
  • According to the research undertaken by the World Economic Forum on the use of information technology in 134 countries (The Global Information Technology Report 2008-2009 – The Network Readiness of Nations, www.weforum.org), Estonia ranks 18th in the Networked Readiness Index and is the highest ranking Central and Eastern European country.

The telecom industry is led by Eesti Telekom (part of the Telia Sonera Group). The dominant service providers in the telecommunications market are: EMT (owned by Eesti Telekom), Elisa (owned by Elisa Communications), Tele2 (owned by Tele2 AB) and Bravocom (local).

Useful links about ICT sector