Fact Sheet July 2005 Today INFORMATION SOCIETY

Estonia has in a short time caught up with advanced countries in terms of information and communication technology (ICT) infrastructure and in the use of ICT in society. Attitudes favouring ICT, innovative thinking and progressive ICT entrepreneurship, have developed a strong technological infrastructure in Estonia. These factors combined with strong economic growth as well as macroeconomic stability form a favourable basis for further development.

Key facts

• 54 per cent of the population (aged 6-74 years) are Internet users (e-Track Survey, TNS EMOR, Spring 2005). • 34 per cent of the households have a computer at home, 82 per cent of home computers are connected to the Internet (e-Track Survey, TNS EMOR, Spring 2005). • All Estonian schools are connected to the Internet. • There are over 700 Public Points in Estonia, 51 per 100 000 people (one of the highest numbers in Europe). • Income tax declarations can be submitted electronically via Internet. In 2005, 76% of Estonian taxpayers declared their income tax via the Internet. • Expenditures made by the government can be followed on the Internet in real-time. • Cabinet meetings have been changed to paperless sessions using a web-based document system. • 72 per cent of Estonian Internet users conduct their everyday banking via Internet (e-Track Survey, TNS EMOR, Spring 2005). • 93 per cent of the population are mobile phone subscribers (National Communication Board, Spring 2005). • Estonia is completely covered by digital mobile phone networks.

Telecommunications rural districts. Mobile phone users can have GPRS Internet access almost anywhere in the country. Considerable investments into technology and communication networks involving foreign, mostly Nordic, The main task of the Estonian telecommunications policy is to investors have been made to modernise the ICT ensure competition and openness. The infrastructure in Estonia. As a result, Estonian telecommunications sector has been completely liberalised telecommunications sector is one of the most developed in since January 2001, when the special monopoly rights of the Central and Eastern Europe. Estonian Telephone Company ended.

12/ 12/ 12/ 12/ 12/ The main bodies in charge of regulatory issues in the field of 2000 2001 2002 2003 2004 telecommunications are as follows: The Ministry of Economic Telephone Affairs and Communications (www.mkm.ee); National main (fixed) Communications Board (www.sa.ee); National Competition 35.9 34.9 34.2 32.8 32.9 lines per 100 Board (www.konkurentsiamet.ee). inhabitants Share of digital Internet 71.2 71.8 76.9 79.3 83 lines (%) TNS EMOR Internet usage surveys show that 54% of 6-74 Number of year old are using the Internet, which means that mobile phone 40.8 54 65 77 93 the community using the Internet has reached 648 000 subscribers per 100 inhabitants people. Compared to the previous year, an additional 4% of the Estonian population of the aforementioned age group i.e. Sources: National Communication Board www.sa.ee 27 000 people have become Internet users.

In recent years, the number of fixed phone lines has The most active Internet users are 10-24 year old people, decreased as many consumers switched from fixed phones more than 90% of whom are Internet users. This age group to mobile phones. Meanwhile, new possibilities offered via has learnt to use the Internet at an even younger age. Almost fixed subscriber’s line have come into service. International two thirds of 6-9 year olds are already using the Internet. This analysts consider Estonia to be the leader in Eastern eclipses the number of users who are of active working age – Europe for broadband DSL access. In terms of DSL 60% of people aged 25-49 are Internet users. penetration per telephone lines, Estonia ranks presently among the top ten in the world. In addition to ADSL, The web serves different purposes in different age groups. wireless connections like WDSL and RDSL are offered in While the favourite activity of 6-14 year olds is playing games,

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Fact Sheet July 2005 the favourite of the 15-24 year olds is communicating with e-government and the symbol of Estonia in the Internet. friends via e-mail. Young people also like surfing the Current election laws include an e-voting option beginning at Internet. The Internet usage of older age groups is more the 2005 elections, provided that all crucial technical issues functional – Internet banking and searching for specific (e.g. safeguarding against fraud) are solved by that information is important, also communicating via e-mail. time. In the summer of 2001, the Government created a (Spring 2005, TNS EMOR) web page Täna Otsustan Mina (“I Decide Today”, tom.riik.ee). 34 per cent of the households have computers at home Ministries upload all their draft bills and amendments there, and 82 per cent of home computers are connected to the allowing people to review, comment on and make proposals Internet. Most home Internet users have high-speed on the legislative process as well as propose amendments to Internet connections. The growth in home Internet existing legislation. Ideas that gain substantial support will be connections has also made the home the location where reviewed by competent bodies. the Internet is used the most. (e-Track Survey, TNS EMOR www.emor.ee , Spring 2005). Since January 2002, the Citizenship and Migration Board (www.id.ee) has been issuing a new primary domestic 72 per cent of Estonian Internet users conduct their identification document - the ID card. In addition to many everyday banking via Internet. Internet banking has advanced security features, the card has a machine-readable become a common channel through which people perform code and a microchip containing the visual data on the card transfers, pay for services, pay taxes, communicate with and two security certificates (long number series), to verify the the Tax Board, etc. Access to various information and bank individual and supply digital signatures. Possible future uses services through mobile phones using Wireless Application of the card include integration of ID cards and banking cards Protocol (WAP) are popular, e.g. the financial institution and various access cards. As of May 2005, Hansapank alone has 31 000 WAP-clients (September 753 000 ID-cards were issued. 2004). The high level of Internet use in Estonia is largely Education, Research and Development correlated to the early adoption of the Internet in the (R&D) research and higher education sector and the existence of a developed telecommunications network. Five universities (University of www.ut.ee, Tallinn Technical University www.ttu.ee, Estonian Business School All Estonian schools are connected to the Internet, as a www.ebs.ee, University Nord www.nord.ee, and Tallinn result of the state-run "Tiger Leap" programme, Pedagogical University www.tpu.ee), a number of technical implemented from 1997-1999. Even the three-student educational institutions and many training companies provide schoolhouse on the geographically isolated Ruhnu Island, basic and specialised education in IT and IT management. with about 40 inhabitants, has an Internet connection. Thanks to the "Tiger Leap" programme, school children are The IT College (www.itcollege.ee) was created in 2000 as a above-average users of the Internet. A short-term goal is to co-operation project between the two largest Estonian public have at least 1 computer per 20 pupils in every school. universities, the Tallinn Technical University and the

People all over the country can access the Internet from University of Tartu, and the Estonian ICT industry. The IT over 700 Public Internet Access Points (PIAP), 51 PIAPs College is a private institution, it works very closely with both universities as well as with the IT and telecom industries. per 100 000 people. The PIAP has a special traffic sign, with the @ symbol, showing its location. Most of PIAPs are The E-Governance Academy (www.ega.ee) was created in located in libraries and other municipal buildings across the 2002 as a non-profit organisation for the development and country. One can easily locate the nearest PIAP by analysis of e-governance and e-democracy, whose aim is to accessing this website www.regio.delfi.ee/ipunktid. There transfer knowledge to top policy-makers and government are around 550 areas (city squares, hotels, pubs, airports Information and Communication Technologies (ICTs) etc.) that currently provide high-speed wireless Internet specialists in developing nations. EGA implements its mission access. More information: www.wifi.ee. through the provision of training services, organising research, facilitating networking and enabling exchange of E-Government and E-Democracy experience in broad areas of e-governance. Located in Tallinn, Estonia, the Academy provides a platform for In August 2000, the , as a world analysing and systematizing both international and domestic pioneer, changed its Cabinet meetings to paperless experience into forms of knowledge that can be transferred to sessions using a web-based document system. those interested both in Estonia and abroad. The objective of the new web-based system is to automate The main advisory body to the Government in R&D is the the preparation process and the proceedings of Cabinet Estonian Research and Development Council (RDC, meetings, which includes preparing as many materials as www.tan.ee). Priority has been given to information possible digitally, which reduces copying costs and delivery technology, gene technology, environmental technology and time. material science. In developing new technologies, one of the Ministers peruse draft bills and regulations, make most successful fields is also cryptography. comments and suggestions, and vote entirely online at computer terminals. The system, coupled with the use of The Estonian Academy of Sciences (www.akadeemia.ee) is digital signatures, eliminates the need to send mountains an organisation unifying scientific pursuits. The Estonian of papers between ministries for consultation. It gives Science Foundation, the Innovation Foundation and the ministers a possibility to participate in the session from any Science Competence Council are involved in the financing of location. The system, created by Estonian IT companies, R&D. The vast majority of R&D is carried out in universities saves approximately three million Estonian kroons (192 and public research institutes. 000 EUR) per year in paper and copying costs. Estonian Information Policy Already before the Government started e-sessions, an Internet portal called the Estonian State Web Centre With its policies and innovative initiatives the Estonian (www.riik.ee) was created in 1998. It contains links to all Government is helping companies make the information governmental institutions’ websites and everybody has technology sector one of the fastest growing in the country. access to almost all the official documents. Together with Research undertaken by the World Economic Forum on the the development of Internet services, the domain riik.ee use of Information technology in 104 countries (The Global has become an inseparable part of the Estonian Information Technology Report 2004-2005 – The Network

Fact Sheet July 2005

Readiness of Nations, www.weforum.org) also indicates a programmes and projects (eContent, eLearning, eTEN, IDA, strong Estonian standing in government and the Northern eDimension etc.). community readiness to participate in and benefit from ICT nd -eInvolvement. Increasing the opportunities for society to use developments. Estonia leads for the 2 year the Central IT and digital solutions. Making sure that all have access to and Eastern European countries with a rank of 25 (out of the Internet by increasing the number of public Internet sites. 104), thanks to its regulatory framework for ICT. Giving all members of society basic computer skills and The development of the information society is dependent increasing the use of Internet in Estonia by creating better on the co-operation of the public and private sectors along access to the Internet infrastructure (lower connection costs, with NGOs. The main developer of Estonian information the rapid development of networks and the creation of policy is the Ministry of Economic Affairs and competition between service and network providers). Communication (www.mkm.ee) and the Estonian Informatics Centre (www.ria.ee), which is under the Examples of ICT target programmes and joint ministry’s management. projects financed by previous State budget:

In creating Information Policy, the stated goals and X-Road http://x-tee.riik.ee/ is a programme to modernise priorities of the Principles of Estonian Information Policy, national databases with the aim to change national databases concrete political decisions made by the Government into a common public, service-rendering resource. This would (Cabinet) and the (Parliament) and EU allow agencies, legal entities and the populace to search data information society development documents (eEurope from national databases over the Internet, provided they are 2005) are used. entitled to do so. At the same time, the system will ensure sufficient security for the treatment of inquiries made to The Principles of Estonian Information Policy databases and responses received. The aim of the X-road (www.ria.ee/atp/eng/index.html?id=258) approved by the program is to develop software, hardware and organisational Parliament in May 1998 serve as a basis for making public methods for the standardised usage of national databases. policy decisions concerning the development of the information society and also include an action plan. In 2001, The Government and a number of private companies announced a project called Look @ the World The Information Policy Action Plan (www.vaatamaailma.ee), as a result of which the percentage (www.ria.ee/atp/eng/index.html?id=261) in its turn is the of Internet users in Estonia should increase from the present basis for all government agencies to make specific numbers to over 90% or exceed ’s corresponding proposals to the Government: proposals with schedules, indicator within three years. The project focuses on further sources of finances, and responsibilities for the improvement of access to the Internet in Estonia. Private implementation of information policy programs every year. companies have announced that they are willing to invest a sum equal to the Government’s yearly IT budget.

Principles of the Estonian Information Policy eCitizen www.riik.ee/ekodanik/ - a nation-wide project for for 2004-2006: developing co-operation between Estonian citizens and the public sector through the Internet. Vision: by 2004, all state -Development of e-services for citizens, business and local government agencies should be providing services sector and public administration, especially the through the Internet, 60 per cent of the population are enhancing of online services following the list of e- everyday Internet users. A citizen's portal that attempts to government services defined in the eEurope Action Plan. meet individual needs is in operation. (http://europa.eu.int/information_society/eeurope/action_pl an/pdf/egovindicators.pdf) An emphasis will also be placed Some legislation for regulating the ICT field: on creating e-environments in the education and health care sectors (eEducation and eHealth Care). Public Information Act (2001)

-Creating and analysing IT solutions that can help the www.legaltext.ee/text/en/X40095K2.htm development of eDemocracy. Creating an operational Guarantees citizens’ constitutional right to information; electronic voting system. regulates what information on the administrative apparatus and its activities is to be offered to the public; asserts that all -Increasing the effectiveness of the public sector. information must be accessible also through the Internet. Completion of the development of the system and infrastructure of state registers, including the development Digital Signatures Act (2000) of systems that ensure for the maintenance of databases www.legaltext.ee/text/en/X30081K3.htm and the introduction of a digital archive. An emphasis will Stipulates the possibility to use digital signatures in public be placed on the electronic communications and the sector organisations as of June 1, 2001. The digital signature electronic exchanging of information by state and local infrastructure is developed through the cooperation of public governments. Improving the management of state sector and private sector organisations, such as banks and ICT vendors. institutions and ministries by creating a new finance and statistical information system. Telecommunications Act (2000)

-Increasing the computer literacy of the population, www.legaltext.ee/text/en/X30063K4.htm eEducation. An emphasis will be placed on educating a The purpose of this act is to create favourable conditions for wide base of the population to ensure their success in the the development of telecommunications and to guarantee the information society and to giving all members of society the protection of the users of telecommunications services by opportunity to use IT solutions in their every day life. promoting free competition.

Increasing the use of computers in schools to surpass the Other relevant acts related to the information society include EU average. Support web based education programmes. Archives Act, Databases Act, Personal Data Protection -eSecurity. Improve and develop the Information Act, Population Register Act. English translations of these Technology Security Policy. acts are available at www.legaltext.ee.

-Sustain the international reputation of Estonia as a Further information: well developing information and communications Internet Sites of Information Society, technology nation. Improve weaker IT sectors to a www.vm.ee/eng/kat_136/288.html minimum level of the EU average. Engaging actively in the EU’s eEurope 2005 programme with the goal of integrating our activities with those of the EU’s development