Update January 2000: Estonia

From October to December 1999 there have been several changes in essential organisations and contact persons. Significant changes are presented below using news agencies BNS and ETA as sources.

1. Changes related to private sector organisations

• OÜ Levicom BroadBand that operates under trademark TELE2, has become an active player in the market, offering Internet services (AS Netexpress, AS Meediamaa) and cable television services. In 1999 a free e-mail service provider Mail.ee was acquired and since September 1999, TELE2 offers a dial-up service.
  
• Estonian Telephone announced the creation of an IP-services division in order to increase the share of data communication in Eesti Telekom Group's turnover. The new division is headed by Andres Käärik, the member of the management board of Estonian Telephone. The division is focusing on bringing new IP-based voice and data communication products to the market.
  
• The consolidated turnover of Microlink, the biggest IT company of the Baltic, was 435 million kroons (28 mln EUR) at the end of the fiscal year (June 30, 1999), net profit amounting to 2.6 million kroons (0.17 mln EUR). Of the subsidiaries, the biggest turnover, 183 million kroons (11.7 mln EUR), was earned by computer manufacturer AS MicroLink Arvutid. The turnover of the IT services provider MicroLink Süsteemide AS was 111 million kroons (7 mln EUR) and turnover of retail chain OK Arvutid was 83 million kroons (5.3 mln EUR).

• In October 1999, Baltic Republic investment Fund (BRF) bought 25.41% of Microlink shares. As a result of this transaction, BRF now owns 48.9% of Microlink shares (including shares belonging to Baltic Investment Fund). The rest of the shares belong to the founders and managers of Microlink and to AS Astro Holding. On December 22, Microlink announced it had purchased 51 per cent of the shares of VAR, Latvia's leading computer company founded in 1990. VAR is the leading reseller of IBM computers in Latvia, it also produces computers, sells and integrates Navision business software, offers training and computer maintenance.

• AS Pennu Computer Technology Group (PCT Group) changed its name to AS XXL.EE. Besides the traditional activities (computer manufacturing and sales, IT services), the company now focuses on digital media and Internet solutions as well as on interactive information solutions - portals. XXL.EE owns a digital media agency Zero, internet portal XXL.EE and IT-company PCT Arvutid. In the third quarter of 1999, the company generated a 1.9 million kroons loss due to restructuring process.

• Eesti Post, the biggest company offering postal services in Estonia, introduced a new service package e+Post that connects the traditional postal service and the possibilities of electronic communication.

• Levicom Cellular's (Chairman of the Board Toomas Peek) Lithuanian subsidiary Levi & Kuto will start the third Lithuanian mobile network by the end of this year. The first test call in the Lithuanian network took place on November 18. The network will first cover Vilnius, preparations are also made in Kaunas.

• Investment company Lohmus, Haavel & Viisemann will begin to mediate investments to the rapidly growing Internet companies of the Baltic Sea region through AS New Economy Ventures (NEV) this year. NEV operates as a venture capital fund, focusing mainly on companies dealing with the Internet.

• Similarly, Trigon Capital together with FinnFund, started a fund investing into the development of IT companies focused on exports to the Baltic and St. Petersburg region. The estimated total assets of the fund will be three to five million euros. Chairman of the Board of Trigon Capital is Joakim Helenius.

• Kinex Infosüsteemid and Tammeraja & Co (Estonia's two most successful business software companies) will merge into Kinex Ärisüsteemid (Kinex Business Solutions), which will be specialised in offering business solutions based on the competing business software titles Scala and Solomon IV. The board of the company includes Margus Tammeraja (Chairman), Indrek Saul (Managing Director), Elar Tammeraja and Andres Kukke.

• CV-Online Eesti OÜ (Estonia's leading personnel recruitment agency on the Internet) started to offer similar personnel recruitment services in Latvia, opening a special information service in Latvian, http://www.cv.lv/.

• AS Antenniekspert began to offer Internet connections via satellite to the general public (downloading via satellite). The speed of the connections is 2 Mb/s. The service called Internet Via The Sky is offered in co-operation with the Europe's biggest satellite communications operator Europe Online Networks S.A.

• The Managing Director of TV3 (one of Estonia's leading private television stations) Andres Joesaar will leave TV3 and start to work in Viasat Broadcasting's internet and communications services company Viasat Internet as the head of the Baltic Division. Jõesaar will remain a member of the board of TV3.

• AS Eesti Mobiiltelefon (EMT) announced a creation of the post of an IT Director. The former Marketing Director Avo Aasma will become the new IT Director. The new Marketing Director of EMT is Jüri Teemant.
  
• On September 1, 1999, the board of Eesti Telekom decided to recall Tarmo Amer from the Management Board. During the same session, the board confirmed Krister Björkqvisti as the new member of the Management Board. Mr Björkqvisti has worked in Finnish telecommunications company Sonera since June, 1999.
  
• Hansabank's (Estonia's leading bank) former IT Director Tõnis Laasik started to work as the IT Director of Microlink, dealing with Microlink's internal IT development. Hansabank's IT Director and member of the Management Board Tõnis Sildmäe, who has been in charge of information technology in Hansabank since the founding of the bank, in October announced his resignation and is leaving the bank from 01.01.2000. In November the bank also announced that the newly created Internet commerce department will be headed by Tiit Pekk, the former Estonian Leasing Division's Director of Hansa Liising.

2. Changes related to public and third sector organisations

• During its General Assembly in October, the Estonian Academy of Sciences re-elected Jüri Engelbrecht as President for the next five years. The Assembly also awarded academic Ülo Jaaksoo with the highest award of the Academy, considering his success in developing information technology and organising the activities of the Estonian Academy of Sciences.

• In November, the General Assembly elected professor of astrophysics Ene Ergma and former rector of the University of Tartu Peeter Tulviste as Vice Presidents of the Academy. The former Vice President Mihkel Veiderma was elected Secretary General. Ülo Jaaksoo, Ain-Elmar Kaasik, Dmitri Kaljo and Richard Villems were elected free members of the Board. Head of the Academy's Astronomy and Physics Department Endel Lippmaa, head of Informatics and Technical Sciences Department Rein Küttner, head of Biology, Geology and Chemistry Department Jaak Järv and head of the Social Sciences Department Arvo Krikmann were also named members of the Board. The General Assembly of the Academy also made a proposal to the Ministry of Education to incorporate Estonian Biocentre (Eesti Biokeskus) into the Academy of Sciences.

• The former Director General of the Estonian Privatisation Agency Väino Sarnet started working as the head of Public Administration Reform Bureau of the State Chancellery in November. The new acting Director General of the Privatisation Agency is the agency's former Financial Director Jaan Liivik. Public Administration Reform Bureau will co-ordinate the implementation of the public administration reform in Estonia, one of the priorities of the ruling coalition.

• The head of the Estonian Export Credit and Guarantee Agency Gunnar Lambing resigned. The agency will be headed by acting Head Ants Juhvelti until the results of the competition to find a new head are announced.

• The Broadcasting Council discharged Toomas Lepp, Director General of Estonian Television, in December. A competition to find a new Director General will be arranged during the next few months.

• A non-profit organisation Estonian Linux (Eesti Linux) is being founded by six members. The organisation will serve as an umbrella organisation for Estonian Linux users, dealing with translating Linux software into Estonian and helping to exchange information.

• Big changes are taking place in the organisation of foundations under the jurisdiction of different ministries. The current nine foundations will be replaced by two. The aim of this action is to stop duplicating the work of the private sector and increase the transparency of business support schemes. The availability of information about business support schemes should also increase and management structure of the development of private entepreneurship should become simpler. One of the new foundations will deal with projects and the other with different kinds of investment and insurance. Under the jurisdiction of the Ministry of Economic Affairs the following Foundations will be restructured:

• Estonian Investment and Trade Development Foundation;
• Small Business Loan Foundation;
• Estonian Export Credit and Guarantee Agency;
• Estonian Housing Foundation;
• Estonian Innovation Foundation.

• Under the jurisdiction of the Ministry of Agriculture, Rural Credit Guarantee Fund will be terminated, as well as the Agriculture and Rural Life Credit Fund under the jurisdiction of the Ministry of Finance.
  
• Under the jurisdiction of the Ministry of Transport and Communications, the plan includes the Estonian Infrastructure and Transport Development Foundation; and the Estonian Regional Development Foundation under the Ministry of Internal Affairs.