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Thinking of the success of our information technology sector, you can’t do anything but smile

The ICT sector in Estonia S

ince 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 the CEE and Western Europe. The most recent developments in the ICT sector in Estonia are :

69% of population uses the Internet and 86% Internet banking (spring 2008) the implementation of e-Elections (in 2007 Estonia held its and the world’s first general Internet election) more than 800 public Internet access points and 1200 free Wi-Fi Internet zones around the country the popularity of several e-Services (e.g. e-School, e-Health and other electronic public services) Electronic ID-card and ID-related services.

Breakdown of ICT activities by turnover (%)

computers manufacturing

computers and related services

23% 28%

ICT equipment manufacturing

Source: Statistics Estonia


3% B&D




n 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 of communications. At the beginning of 2009, 1700 companies were active in the ICT sector, contributing 5% of total sales in business activities in Estonia. Over 16,500 employees are currently working in the ICT sector – that is 4% of total employment in Estonia.

The telecoms industry is led by Eesti Telekom (part of Telia Sonera Group). The dominat 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).

Easy start-up opportunities and low running costs

Main advantages and strengths of the ICT sector in Estonia Highly educated, skilled and low cost labour in ICT services offers profitable business opportunities

Educated labour Know-how Ongoing R&D High productivity Good language skills

Well-developed telecommunications and digital infrastructure offers a superior environment for business operation Telecommunications infrastructure High digital infrastructure level

Great opportunities for starting a business Competitive labour costs Seamless business Accessibility and low transportation costs Simple and low taxes Favourable legislation and stable environment

Favourable legal system Openness to innovations Low level of bureaucracy Entrepreneurship support

Information Technology sector  

Information Technology sector short overview