12 Apr 2012Estonia Broadband Overview

The telecommunications market in Estonia was deregulated in 2001. As a result of early liberalisation and intense competition, Estonia has a rather well developed communications network. In recent years, broadband penetration in rural areas has improved mainly due to the uptake of fixed wireless broadband services. The operators have improved the coverage of 3.5G networks and launched advanced data services with prices comparable to fixed broadband services. However, penetration of dedicated data services remains low.

To reduce the digital divide, the newly established Estonian Broadband Development Foundation, which has among its founders Estonian telecom providers, mobile operators and other companies, announced a joint initiative to develop super-fast broadband infrastructure by 2015. The action plan, called EstWIN, aims at connecting every household and business to the new fibre network capable of offering 100 Mbps speeds. Building the network will require an investment of EUR 383 million, most of which will be covered by the telecom companies, with some of the funds coming from the government.

The EstWIN project will be implemented in several stages. The first step is the deployment of fibre-optic networks in greenfield areas where this would not be commercially viable. In the second stage, the project will cover the upgrade of existing networks to improve their quality and capacity. It was proposed that public funding be used for areas where network upgrades would not be commercially viable. The subsidies would consist of the state’s contribution, estimated at EUR 96 million, but a contribution from EU structural funds will also be requested. By the end of 2015, a 6,400 km fibre based network should be deployed, situated at least 1.5 km from 98 per cent of homes and businesses. In the second stage, telecom operators will build network connection points in cooperation with local governments. An open access model will be used with all operators being able to rent the infrastructure on equal terms.

As of April 2012, EstWIN network already covered 77 local authorities with 400 connection points installed and 1200 km of fibre deployed. Another 1300 km should be rolled out by the end of 2012. Estonia is already enjoying the benefits of investment in fibre networks, with a dramatic increase in average broadband speeds to 50/28Mbps as of early 2012.

Estonia also has a Wi-Fi network covering 100 per cent of the territory. Much of this wireless connectivity, especially in urban areas, is provided free of charge, but a number of ISPs offer flat-rate access packages.

Development of Estonia's internet society was guided by Estonian Information Society Strategy 2013. Recognising that the public sector holds a leading role in developing the internet society, the strategy aimed for 70 per cent internet penetration among households by 2013. The actions to support this goal included developing a competitive internet access market and supporting the development of convergence technologies. Broadband penetration target was achieved as early as 2010.