Organisations added to the database have filled ESIS II questionnaires used for surveying IS projects, or they have been mentioned in ESIS II reports.

Estonian ESIS expert team has added 183 organisations (276 persons) that influence most directly Estonian information society developments to ESIS II Database over June 1999 - December 2000.

Although large percentage 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 about significance of mentioned persons and organisations are to be found in respective reports.

Attention is to be paid to following aspects:

According to the Estonian ESIS II expert team most important changes were: reform of state information systems co-ordination; research and development reform; privatisation of AS Eesti Raudtee, rise of venture capital funds and their actions in supporting entrepreneurship; emerge and co-operation of companies engaged with new innovative projects; and expansion of Estonian companies (above all banking and IT companies) to foreign markets. Many top professionals have changed jobs and employers (most of all this concerns banking and telecommunications companies); in number of cases people have not continued in ICT sector. At the same time people with previous work experience from other areas have started work in ICT sector.

2.1. Telecommunications operators

Most significant telecommunications operators in 1999 and 2000 have been AS Eesti Telefon (with exclusive rights granted on fixed voice telephone market till January 1, 2001), and AS Eesti Mobiiltelefon, AS Radiolinja Eesti and AS Ritabell on the mobile communications market. AS Eesti Telefon and AS Eesti Mobiiltelefon belong into AS Eesti Telekom group. 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 AS Eesti Telefon Jaan Männik. Valdo Kalm was appointed the new Chairman of the Supervisory Board of AS Eesti Telefon.

Data communications market has been open for competition and most significant enterprises in both 1999 and 2000 have been AS Eesti Telefon, Delfi OnLine, Esdata AS, KPNQwest Estonia AS, Uninet AS and Infonet AS. As a substantial shift in public sector the National Information Communication Foundation is being established into the governance of Ministry of Transport and Communications. The Foundation aggregates several separate communication systems, and starts thus to plan and to order integrated national communications solutions. Estonian Educational and Research Network EENet (subjected to the Ministry of Education) is continually responsible for data communication of educational and science institutions.

Railway company AS Eesti Raudtee, gas company AS Eesti Gaas and power engineering company AS Eesti Energia could provide telecommunication services using alternative networks. AS Eesti Energia established an independent economic entity based on former Communications Department - Eesti Energia Televõrk - in April 2000. Eesti Energia Televõrk operates the corporate telephone and data communications network that covers whole Estonia, and offers telecommunication services to Eesti Energia and its subsidiaries. Another important change was privatisation of 66% AS Eesti Raudtee shares in 2000. As result of the privatisation competition negotiations are held with the company Rail Estonia (shareholders Kingsley Investments, CSX Corp and Rail America Inc.).

Most significant cable distribution operators are Tallinna Kaabeltelevisiooni AS, AS Levi Kaabel, Starman Kaabeltelevisiooni AS, AS STV Kaabeltelevisioon.

From 2001, the most important companies in the market will probably be AS Eesti Telefon, Levicom BroadBand OÜ (TELE2) and Uninet AS. Service provision is to a large extent based on the networks of AS Eesti Telefon (copper-based last mile connections). To use these networks interconnection agreements have to be agreed. New operators are building their own backbones and international connection channels.

2.2. IS projects in private sector

Several important changes in private sector occurred during the examined period. Hereby some of them are presented.

Public Key Infrastructure was given legislative power with the Digital Signature Act (entered into force on December 15, 2000. It enables wide use of electronic documents and digital signatures as well as several new electronic services. Hansapank, Ühispank, AS Eesti Telefon and AS Eesti Mobiiltelefon signed a contract concerning co-operation in developing the Public Key Infrastructure in May 2000. The goal is to create a PKI base infrastructure enabling application of electronic administration in all realms. In March 2000 AS Eesti Telefon, AS Eesti Mobiiltelefon and Privador AS announced of the intention to elaborate a Public Key Infrastructure together. It would enable ordering and using services of AS Eesti Telefon and AS Eesti Mobiiltelefon safely via Internet; the infrastructure will be created based on the clientele of ET and EMT.

One of most successful areas of application development in Estonia has been development of cryptography products. Main actor in the market is AS Privador, founded from the state enterprise AS Küberneetika in the first half-year of 2000. The company offers digital signature systems; AS Privador will be used for introducing the products to the European market and improving developmental activities.

Largest exporting enterprise Elqoteq Tallinn employs over 3000 people 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% (350 MEUR) of the Estonian national export.

Eesti Ühispank and AS Eesti Telefon established a joint enterprise developing Internet solutions. According to the parties concerned an explosive increase in e-commerce it to be expected and therefore the development of Internet will essentially affect the traditional values in both manufacturing and purveyance process. With the foundation Eesti Ühispank as one of the leading banks and AS Eesti Telefon as the biggest fixed telephone operator in Estonia wish to obtain a synergy effect elaborating a safe, high-quality and trustworthy environment for e-business.

In January, MicroLink (Estonia) and Fortech (Latvia), the leading information technology companies in the Baltic countries announced their merger that resulted in the biggest IT corporation of the Baltic region with a yearly turnover of almost a 64 MEUR.

Like in other countries, e-commerce development has faced problems and some companies with too optimistic expectations (incl. Index Net OÜ) are in difficulties.

In June 2000, 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. Target group of the Laboratory are R&D enterprises and companies integrating their production processes with Internet, start-ups.

Ericsson Eesti, Tallinn Technical University and AS Eesti Mobiiltelefon established a science centre in co-operation with Swedish-Estonian fund Baltic Sea IT Fund for developing telecommunications related software application. With a tripartite framework agreement the new joint software development program WAY (Wireless Application Odyssey) is started for testing and developing new mobile communication technologies. Attention will be paid to both WAP-mobile communication technology-based software and to the new mobile communication standard GPRS.

In May 2000 the public was informed of the Estonian Genome Project. In the course of project execution an unique information base will be established, the use of which gives an opportunity to diagnose diseases, determine the risks to the health and to enhance the treatment more accurately and efficiently than before. For the durability of the project five years and for costs 100 MEUR are planned. Out carrier of the project is the Estonian Genome Foundation.

In the field of www-services the activities of Hansapank deserve to be emphasised. With offering electronic banking services to customers, Hansapank has created a public demand for similar electronic services of other institutions as well. Hansapank has offered also its server’s authentication services to other organisations. Some examples of services are the possibility for AS Eesti Mobiiltelefon clients to order electronic invoices to their mailboxes and pay them comfortably. Since spring 2000 Hansapank’s Internet bank interface became equipped with the opportunity to examine how much social tax an employer has paid per employee in 1999, and it is possible to conclude compulsory vehicle insurance agreements.

2.3. Investment funds

Estonian investment banks have started active investing in IT projects. Two leading banks in the field are Lõhmus, Haavel & Viisemann (operates through AS New Economy Ventures), and Trigon Capital. Later the IT incubator AS zero2hero.ee joined the market for selecting and financing business projects.

2.4. Education

Estonian IT education is mainly concentrated in Tallinn Technical University and University of Tartu.

Additionally, Estonian Information Technology Foundation was established by the State in 2000. The goal of the Foundation was organising the establishment of the Information Technology College and operating it. IT College started work in autumn 2000 with about 200 students, studies in ITC last for three years.

In November 2000 the Estonian Educational and Research Network (EENet) signed the agreement to carry out the Geant project with other European E&R networks. The objective of the project (has received almost 80 Million EUR subsistence allowance from the EU IST programme) is development of an unified all-European E&R data communications basis network, and significant extension of international communications network.

2.5. Governmental institutions

In connection with rapid development of Estonian IS the net of public sector organisations active in IS development promotion through corresponding legislation creation and carrying out projects serving public interests, has enlarged.

The Ministry responsible for IS infrastructure and public sector IT development is the Ministry of Transport and Communications (until September 2000 the State Chancellery co-ordinated public sector IT development). In the governance of the Ministry of Transport and Communications operates the Estonian National Communications Board. Activities of the Board are based on the Telecommunications Act and the Cable Distribution Act; both adopted in the reporting period.

In order to regulate national information communications system the Government established the National Information Communications Foundation in December 2000.

By the end of 2000 reorganisation of foundations subjected to different Ministries is almost completed.

Two new foundations (Ettevõtluse ja Elamumajanduse Laenude Tagamise Sihtasutus and Ettevõtluse Arendamise Sihtasutus) will be established in place of existing 9 foundations. The aim of the action is to stop duplicating the work of private sector and to 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. Changes concerned foundations subjected to the Ministry of Economic Affairs, Ministry of Agriculture and Ministry of Transport and Communications.

Pursuant to the Research and Development Act research and development belong to the competence of the Ministry of Education and innovation to that of the Ministry of Economic Affairs. The advisory body at the Government, Research and Development Council, is currently reorganised. In December 2000 the draft of altering the Research and Development Act was taken into the proceedings of the Parliament.

In May 2000 the Ministry of Economic Affairs announced of establishing a technology agency aimed at improved expediting and financing of development activities and innovation. Establishment of the agency is part of the alteration of Estonian R&D system. The Technology Agency will be sub-oriented to the Enterprise Development Foundation (Ettevõtluse Arendamise Sihtasutus) and will be concerned with supporting technological projects and distributing IT related information, and product and technology development.

Heldur Meerits, former Vice President of Bank of Estonia, started work as Prime Minister's economic adviser in July 1999. In September 1999 Linnar Viik, project manager of the Tiger Tour, started work as Prime Minister's advisor of IT, R&D and innovation.

2.6. Formation of Expert Groups

Up to the beginning of 2000 the most important contest organiser of WWW pages and new ideas was Open Estonia Foundation which at the present moment due to reorganisation has ceased organising such contests.

In March 2000 the Association of Estonian Information Technology and Telecommunication Companies was established based on Association of Estonian Computer Companies from one side and the Union of Telecommunication Companies from the other side. Currently the Association is the most important umbrella organisation of the companies in the field. The objectives of the Union include representing common interests of members, participating in developing related legislation and thus accelerating the rise of fair and competitive environment in Estonia. Also, internal codes of conduct and ethics code are being developed, and related court is being established.

2.7. Surveys and Publications

Estonian developments have been analysed thoroughly in the United Nations Development Programme global human development reports. With programme's help Public Internet Access Points have been created and several important surveys carried out. Closure of Estonian Mission office in 2001 has been announced.

Main local institution studying IT usage among Estonian inhabitants is AS Emor, which conducts studies twice a month to study Internet usage habits of Estonian population.