Update November 2000: Estonia

During the period July - September 2000 (inclusively) several changes occurred in key persons and main organisations in the context of information society developments. Contact details of persons and organisations can be found in corresponding ESIS II Database.

The most important changes to which the Estonian ESIS expert team wishes to draw attention are as follows:

• The co-ordination of state information systems was transferred to the administrative field Ministry of Transport and Communications, IT Deputy Secretary General starting work in October will be responsible for the field (see 2.1.1.);
• Institutional re-organisation of public sector institutions continues (see 2.1.2. - 2.1.4.);
• Several new enterprises were established and ownership of some changed or changing significant in the context of Estonian IS development. As result of ownership changes various new (mainly business oriented) information society projects will be started (see 2.5., 2.6.).

The following report consists of two parts. In the first part Estonian persons and organisations currently in the ESIS Database are briefly overviewed and analysed in the context of wider developments. The second part covers changes over the last three months in private, public and non-profit sectors more thoroughly. One has to note that even if some changes seem not to have any impact on European level, are they still influencing Estonian developments via new information society projects or changing the overall attitude.

1. Overview of organisations and persons in the ESIS II Database

Estonian ESIS expert team has added 159 organisations (256 persons) that influence Estonian information society developments the most to ESIS II Database as of October 1, 2000.

Although large amount of organisations are not directly involved in 'Information Society Projects', they have roles as support structures, whether providing technical infrastructure, organising promotional activities or participating in legislation preparation processes. Details on the roles of mentioned persons and organisations can be found in respective reports.

Attention is to be paid to following aspects:

• Estonian IT companies sector is relatively moderate: hardware and software systems used are often developed in other countries and produced as well. The number of enterprises active with offering IT systems and services does not exceed 300, most companies are small businesses engaged with intermediation. Attention is to be drawn to the 32 enterprises having an impact on the wider development;
• Despite of the extremely rapid development of the telecommunication market in 1990s, the question about services provided by telecommunication operators and tariffs is still in the air. Accordingly the number of telecommunication operators (25) in the database is high. Most companies are data communication service providers or local cable distribution operators. Among those 8 organisations are of all-Estonian importance;
• During 1999 and 2000 content service development has begun, i.e. enterprises for which IT is an important mean for organising offered services or organising own work more effectively have started more active usage of it. The situation is at its best in banking. Consultation firms arranging events on information society belong into this category as well. In the second half-year of 1999 and the first one of 2000 Estonian rapidly developing venture capital enterprises were added to the database;
• The IT usage in Estonian public sector is on a good level; accordingly the public sector has dealt with important undertakings in the area since the beginning of 1990s. The public sector has an essential part in directing development through legislation;

2. Changes in Key Persons and Organisations.

2.1. Government, Ministries, Agencies

2.1.1. State information systems will be co-ordinated by the Ministry of Transport and Communications

In June 2000 the Parliament altered the Government of the Republic Act according to which the co-ordination of state information systems was transferred into the governance of Ministry of Transport and Communications. With the modification the importance of the domain is increased through the determination of the responsibilities since a post of the official in charge of the domain was established -

a Deputy Secretary General of the Ministry of Transport and Communications. Starting in the beginning of October Mait Heidelberg previously employed in AS Eesti Telefon, takes the post.

On September 1 the Ministry of Transport and Communications took over the co-ordination of the domain, to sustain the coherence of co-ordination, most of the personnel of the State Chancellery was transferred into the governance of the Ministry of Transport and Communications.

2.1.2. Department of State Information Systems and Document Management

Related to the reorganisation in the co-ordination of state information systems, in course of which functions concerned were subordinated to the Ministry of Transport and Communications (previously in the governance of the State Chancellery), a corresponding unit was established by the State Chancellery. Among the rest the unit is responsible for the document management programme of government agencies, it is held for a prior work direction.

2.1.3. Foundations reform and the Technology Agency

In June 2000 Government decided to establish two new relevant foundations "Ettevõtluse ja Elamumajanduse Laenude Tagamise Sihtasutus" and "Ettevõtluse Arendamise Sihtasutus".

With the creation of these two foundations the merger of activities of foundations subordinated to different ministries will take place. The aim of the 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 enterprises should become simpler.

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 and Credit Guarantee Agency;
• Estonian Housing Foundation;
• Estonian Innovation Foundation.

In addition the plan includes the reorganisation of:

• Rural Credit Guarantee Fund (Ministry of Agriculture);
• Agriculture and Rural Life Credit Fund (Ministry of Finances);
• Estonian Infrastructure and Transport Development Agency (Ministry of Transport and Communications);
• Estonian Regional Development Agency (Ministry of Internal Affairs).

The merger process should be completed by the beginning of 2001.

As a sub-unit of the merged foundation the Technology Agency will operate subjected to supporting technological projects and distributing information about information technology, production and technology development. Supervisory board of Innovation Foundation, the base for the present Technology Foundation, contains of the Chairman Oleg Epner, Vice-Chairman Kitty Kubo and members Heldur Meerits, Rein Vaikmäe and Aare Järvan.

In July the Minister of Regional Affairs Toivo Asmer was elected to the Chairman of the Supervisory Board of the Ettevõtluse Arendamise Sihtasutus, members of the Board are Minister of Economics Mihkel Pärnoja, Minister of Regional Affairs Toivo Asmer, Secretary General of the Ministry of Finance Aare Järvan, Secretary General of the Ministry of Transport and Communications Margus Leivo, Deputy Secretary General of the Ministry of Economics Raul Malmstein, Deputy Secretary General of the Ministry of Foreign Affairs Priit Pallum and as representatives of Estonian enterprises Aadu Luukas, Koit Uus and Heiki Künnapas.

On August 31 Maive Rute was appointed the Director of Ettevõtluse ja Elamumajanduse Laenude Tagamise Sihtasutus.

2.1.4. National Information Communications Foundation

On August 29 the Government decided to establish an expert committee for creating a compact national information communications system and establishment of the National Information Communications Foundation.

2.2. Education

2.2.1. Estonian Information Technology Foundation and IT College

In August co-operation agreement with the University of Tartu, the Tallinn Technical University and Information Technology College was signed. According to the agreement the universities recognise the education level of the IT College and enable the students of IT College to continue their studies in the University of Tartu or in Tallinn Technical University.

2.2.2. Estonian Business School

At the end of August former member of the Parliament Peeter Lorents was elected the IT professor in Estonian Business School.

In autumn 2000 IT management discipline was established in the tuition charging Estonian Business School. Among the rest it is possible to study in post-graduate training both daily or during the weekends, also based on Internet. The world's leading Internet study programme Web CT is used.

2.3. Broadcasting

2.3.1. Estonian Television (ETV) and Estonian Radio (ER)

In July the former Chairman of the Board of Eesti Ühispank Aarne Urm was appointed the new Chairman of Estonian Television.

In July Ain Saarma was appointed the new Chairman of Estonian Radio.

2.3.2. AS Eesti Telekom and AS Eesti Telefon

Starting September 1, 2000 the Chairman of the Supervisory Board of Eesti Telekom changed: Toomas Sõmera was replaced with the former Chairman of the Supervisory Board of Eesti Telefon Jaan Männik.

For performing the tasks of the Chairman of the Supervisory Board of Eesti Telefon a two-month contract was concluded with the member of the Supervisory Board of Eesti Telefon Valdo Kalm.

2.4. Applications

2.4.1. Internet Economy Lab

At the end of June the Tallinn Technical University Innovation Centre in co-operation with Microlink AS opened the Internet Economy Laboratory with the purpose to create a support centre for introducing new Internet application possibilities in business and for gaining and developing respective experiences in Estonia.

Training events, seminars, technology application introductions etc. will be organised. The target group of the organisation are R&D enterprises and companies integrating their production processes with Internet, start-ups.

With a co-operation agreement between the International Association of Science Parks (IASP) and Intel Corporation six Internet Economy Laboratories technologically provided by Intel will be established in Europe.

2.5. Mergers and take-overs

2.5.1. Possible change in AS Starman Kaabeltelevisoon ownership

According to PriceWaterhouse Coopers, the sale arranger of major shares of Starman the sale will take place in course of 2000. In preliminary plans the sale was to take place in June/July.

At the moment ownership relations (Telia AB as the major share-holder of the company) prevent the company from participating in tenders for activity licences arranged by the National Communications Board. At the moment Starman has 10 temporary activity licences but some of these will expire soon. So for example Starman could not participate in the tender of cable distribution operator in Kehra.

According to Starman the Swedish corporation NetCom AB (trademark TELE2) is interested in gaining a participation in Starman.

2.5.2. TELE2’s precontract for purchasing Telset’s cable distribution networks

In July Tallinn Cable Television Ltd. (Tallinna Kaabeltelevisiooni AS, trademark TELE2) and AS Telset Telecommunications Group precontracted for a purchase of shares; with it Telset’s cable television networks located in Tallinn and Maardu covering 41.400 households will be sold to Tallinn Cable Television Ltd. With the conclusion of the bargain the cable distribution networks of TELE2’s subsidiaries would reach 102.000 households in Estonia.

2.5.3. AS Regio

On September 25 the Finnish enterprise Digital Open Network Environment OY (Done) and Estonian map publishing company AS Regio signed an agreement according to which Done issues new shares aiming Regio share holders and two companies shall be merged.

2.6. Other

2.6.1. Tech Data Eesti AS

Computer 2000 Eesti AS announced of a change of name, the new name will be Tech Data Eesti AS. The company is concerned with supplying most of Estonian IT enterprises with products from leading information technology companies of the world.

2.6.2. First Estonian software manufacturer granted the ISO 9001 quality certificate

E-commerce company Index Net AS was granted the ISO 9001 quality certificate, altogether there are about 90 ISO 9000 series certificates in Estonia.

Index Net AS was established in 1998 and the company is involved in evolving and selling e-commerce solutions and administrating respective portals and e-commerce environment.

2.6.3. Elcoteq Tallinn

In the beginning of September the newly appointed Director General Panu Kaila of Elcoteq Tallinn took the office.

Elqoteq Tallinn has presently 3150 employees and the company is mainly focused on manufacturing mobile phones. Among others Ericsson and Nokia are customers of the factory. In 1999 company's export totalled for 12.4% (5.4 Billion EEK, EUR 85 Billion) of the Estonian national export, the company is Estonian biggest exporter.

2.7. Ranks of honour and prize awarding

2.7.1. Miksike was awarded 'The Stockholm Challenge Award 2000'

Provider of virtual learning services AS Miksike was awarded first price in international competition 'The Stockholm Challenge Award 2000' in the category 'Education'.

Contact information of mentioned organisations and persons can be found in the ESIS II database of contact persons.

References

The present survey has been compiled based on the materials of news agencies BNS and ETA as well as newspapers "Postimees", "Päevaleht" and "Äripäev" and the opinions expressed by various experts.