April 2000

Estonia Master Report

I - General background

Estonia regained its independence on 20 August 1991. 1940 – 1991 Estonia was a part of the Soviet Union and the national communications networks were part of the Soviet networks. As an extension of the USSR network, the Estonian telecommunications network suffered from a lack of direct international links and from a low level of modernisation and digitisation. Another problem was the huge disparity in telephone distribution between urban and rural areas.

As a well functioning telecommunications sector is considered important for raising the competitiveness of the economy and the quality of life, Estonia has paid much attention to the information society developments and its shaping after regaining its independence. The main issue was insufficient technological and informational infrastructure, and in order to support its development a Concession Agreement was signed and the national telecommunications enterprise was privatised. This has resulted in significant investments that have been made in the extension and digitisation of the public telephone network. The state has adopted several important legislative acts and established the necessary state structures and has this way organised the telecommunication market.

1 General telecom policy

The Estonian telecommunications policy is oriented towards liberalisation. This means the end of the Concession Agreement signed between the Government of Estonia and the Estonian Telephone Company (ETC). Agreement signed in 1992 granted exclusive rights to ETC for the period of eight years (till 01.01.2001) for the provision of basic services (national and international switched fixed voice telephony services, telex and telegraphic services, their installation and interconnection to them). Non-basic telecommunication services (e.g. mobile and data communication, paging services, satellite communication or value-added services) can be offered freely although a licence is needed for building and operating networks and/or if there is interconnection to the PSTN. There is competition in all of these liberalised markets.

The area of telecommunications is regulated besides Concession Agreement with:

• The Cable Distribution Act (Kaabelleviseadus, State Gazette [Riigi Teataja], RT, 1999 [year], 25 [number], 362 [article]) that has entered into force in June 1999
• Telecommunications Act (Telekommunikatsiooniseadus) adopted in 2000 and partially in force (RT I 2000, 18, 116).

1999 and the first quarter of 2000 have been characterised by the fast development of the entire telecommunications market:

• growth of the number of telephones and telephone lines (particularly concerning mobile communications);
• spread of modern telecommunication services (ISDN, ADSL);
• organisation of the cable distribution market in connection with the entry into force of the Cable Distribution Act;
• preparations of the actors in the market for the disappearance of the exclusive rights of AS Eesti Telefon;
• taking a definite position by the state (Cable Distribution Act, Telecommunications Act).

2. Institutional structures in charge of the regulatory issues

The main institutions in charge of the regulatory issues in the field of telecommunications are as follows:

• The Ministry of Transport and Communications;
• Estonian National Communications Board;
• National Competition Board;
• Consumer Protection Board;
• Inspection of Data Protection.

2.1 Ministries in charge of the telecommunication issues

The Ministry responsible for telecommunications is the Ministry of Transport and Communications.

The area of government of the Ministry of Transport and Communications shall include the management of railways, roads and streets, waterway and air traffic, shipping, telecommunications and postal services, the promotion of public transit, the improvement of traffic safety, the reduction of environmental damage caused by vehicles, and the preparation of corresponding draft legislation. (§ 68, Government of the Republic Act (Vabariigi Valitsuse seadus), RT1 1995, 94, 1628).

One of the subunits of the Ministry of Transport and Communications is the Communications Department (Sideosakond) that is engaged with working out and implementation of communication policy, preparation of draft legislation in the field of communications. Whereas the Communication Department regulates the prices of basic services and monitors the conformity of the activities of Eesti Telefon with the Concession Agreement.

In the area of government of the Ministry of Transport and Communications the Estonian National Communications Board (Sideamet) is operating.

The Copyright Committee set up at the Ministry of Culture that monitors the situation concerning copyright and other rights related to copyright, makes proposals for the amendment of copyright acts, etc.

In the area of government of the Ministry of Economic Affairs is the Patent Office that is operating in the field of legal protection of industrial property: participates in working out the respective draft legislation, registers the objects of legal protection of industrial property and maintains the respective national registers.

The regulating body of broadcasting is the Broadcasting Council that consists of nine members that are appointed by Riigikogu (Parliament) at the proposal of the Cultural Affairs Committee of Riigikogu. The Broadcasting Council supervises the activities of Eesti Raadio and Eesti Televisioon. Broadcasting is regulated with the Broadcasting Act (Ringhäälinguseadus, RT1 1994, 42, 680).

The task of the State Chancellery is to arrange the administration and technical maintenance of the Government of the Republic and Prime Minister, and one of its sub-units is Department of State Information Systems. One of the tasks of the department consists in the co-ordination of the information systems of all government agencies on the national level. Another institution engaged with the area of telecommunications in public administration is the Estonian Informatics Centre that provides services to ministries and other government agencies and whose assignments include the development of data communication networks for public administration.

2.2 National frequencies allocation authority

The Estonian National Communications Board arranges and guarantees the efficient and optimum use of radio frequency modulation; prepares the national radio frequencies allocation plan, performs national monitoring over the use of radio frequencies and approves the types of radio transmitters.

2.3 Office for the protection of free economic competition

The protection of free competition is ensured by the Estonian Competition Board, which is a government institution under the governance of the Ministry of Finance, The main act regulating the field is the Competition Act (Konkurentsiseadus, RT I 1998, 30, 410).

One of the tasks of the Communications Board is also consumer protection, review of applications from legal persons and individuals in the issues of competition and telecommunications and taking measures for the removal of shortcomings.

2.4. Advisory Bodies

The Estonian Informatics Council advises the Government of the Republic in the issues about information society. Its main areas are strategic planning, giving expert opinions on legislative acts in the area of informatics, reviewing the developments plans of State Information Systems.

2.5 Public telecommunication operators

2.5.1 Estonian Telekom Ltd (ET)

AS Eesti Telekom is a holding company operating in the administrative field of the Ministry of Transport and Communications. Estonian Telecom holds the shares of the Estonian Telephone Company (AS Eesti Telefon) (100%) and Estonian Mobile Telephone Company (AS Eesti Mobiiltelefon) (100%).

The shares of ET are distributed as following:

• Telia AB (Sweden) and Sonera Holding B.V. (Finland) - (49%);
• Estonian Government (27.3%);
• Public investors (23.7%).

2.5.2 AS Eesti Telefon

Estonia’s incumbent public fixed telephony telecommunications operator is the Estonian Telephone Company.

A Concession Agreement was signed between the Government of Estonia and the Estonian Telephone Company (ETC) in 1992. The Agreement granted exclusive rights to ETC for the period of eight years (till 01.01.2001) for the provision of basic services (national and international switched fixed voice telephony services, telex and telegraphic services, their installation and interconnection to them). The Concession Agreement also granted ETC a general 25-year licence for the provision of telecommunications services.

2.5.3 Mobile operators

Three mobile operators are operating in Estonia:

• Estonian Mobile Telephone (EMT) operates an analogue NMT 450 network and 900/1800 MHz GSM network.
• Radiolinja Eesti is 100% owned by Finnet Group, Finland. It is mainly operating in 900 MHz GSM market.
• Ritabell is owned by NetCom Systems AB, Sweden and is operating in 900 MHz GSM market.

The GSM licenses awarded to these three operators also cover the use of DCS 1800 frequencies.

2.5.4 Paging companies

There are two paging companies operating in the Estonian market:

• AS Baltcom Eesti owned by Metromedia International (USA) and KTK Overall (Estonia);
• Estonian Paging Company.

3. International relations and agreements

4. Regulatory framework

4.1 Historical overview and current general legislation

With the regaining of independence changes started to occur in the Estonian market of telecommunications. In 1991 the Ministry of Communications was reorganised and its regulative functions were delivered to the Ministry of Transport and Communications. The state-owned enterprise Eesti Telekom became the operator of the Estonian communication system and was reorganised in 1991-93 into the holding company of two separate enterprises (AS Eesti Telefon ja AS Eesti Mobiiltelefon). Shares in both companies were sold to foreign companies Sonera and Telia.

In 1997 the state-owned company Eesti Telekom was reorganised into AS Eesti Telekom and it was decided to privatise up to 49% of state-owned shares by auction. In the course of the sale of shares that took place at the beginning of 1999, 49% of the shares owned by the state were bought by institutional and private investors and as a result of the restructuring of Eesti Telekom, Sonera and Telia acquired a participation in AS Eesti Telekom.

The main law regulating the Estonian market of telecommunications from 1991 till the entry into force of the Telecommunications Act in March 2000, recently adopted by Riigikogu (Parliament), was the Communications Act. The Communications Act established the rights and obligations of legal entities and individuals in the possession, use and disposal of means of communication and communication networks and organisation of communication networks in the Republic of Estonia, also the general principles of liability for the violation of communication law. With the adoption of the Telecommunications Act all sections regulating the telecommunication market were deleted in the Communications Act. At the same time all provisions concerning the postal services network remained in effect.

In 1992 the Concession Agreement was signed by the Estonian Government and AS Eesti Telefon (ET), granting ET exclusive rights till 01.01.2001 for the provision of basic services (national and international switched fixed voice telephony services, telex and telegraphic services, their installation and interconnection to them). The exclusive rights shall not be extended.

The area of telecommunications has been regulated with the following laws:

• The Cable Distribution Act (Kaabelleviseadus) (RTI 1999, 25, 364) that came into effect in June 1999 and that is in full conformity with the Directive 96/19/EC, concerning liberalisation and the provision of telecommunication services through the cable distribution network.
• The Telecommunications Act (Telekommunikatsiooniseadus, RT I 2000, 18, 116) adopted at the beginning of 2000.

4.2 Key legislative measures

4.3 Issues

4.3.1 Liberalisation

With the Concession Agreement the Estonian Telephone Company acquired exclusive rights to basic services. However, one of the conditions of the Concession Agreement is: "The concession holder shall, on terms and conditions to be agreed between the concession holder and the party interested in interconnection, allow, facilitate and effect the interconnection to its network of the Basic Services and systems of other telecommunications operators, according to the Telecommunications Act of the Republic of Estonia, and established international standards". (§4.12)

Non-basic telecommunication services (e.g. mobile and data communication, paging services, satellite communication or value-added services) can be offered freely although a license is needed for building and operating networks and/or if there is interconnection to the PSTN. There is competition in all of these liberalised markets.

4.3.2 Licensing

Issue of activity licences is foreseen both by the Telecommunications Act and the Cable Distribution Act.

The Cable Distribution Act stipulates that non-transferable licenses for the construction and operation of cable television networks are issued by the National Communications Board for the term of ten years:

(1) "Cable television network licence" means an activity licence issued by the Communications Board which entitles the person indicated therein to construct, own and use a cable television network under the conditions specified in the licence.

The adoption of the new Telecommunications Act has changed the earlier system for the issuing of activity licences. The entrepreneurs that were operating in the telecommunications market before the entry of this law into force have to submit a notice and application for activity license to the National Communications Board by 1 September 2000 and after that they will have the right to continue their earlier activities till the decision of the National Communications Board. To new companies entering the market the new act shall be applied from 1 August 2000.

To operate a public telecommunications network or a telecommunications network connected with it or with a telecommunications network located in a foreign country or to provide a telecommunications service, a person has to notify the Communications Board in writing. The information needed in the notices is determined in § 9 and the persons may commence after the notice has been registered in the Communications Board (§ 10).

Besides notification the person has to obtain in certain cases the licence that is not transferable and issued for a term of ten years unless the applicant for license requests a shorter term (§ 12):

(2) A license is required for the operation of a telecommunications network if the operation is based on:

1) use of allocations of radio frequency channels from the national radio frequency allocation plan, or

2) use of allocations of number series from the national numbering plan.

(3) A license is also required if a telecommunications network is interconnected with a public telecommunications network or a telecommunications network located on the territory of a foreign country.

The license shall be issued not later than within six weeks after the receipt of a correctly completed application at the Communications Board.

Besides the licence there is also the non-transferable technical authorisation licence granted for a specified time (§ 18).

2) The types of technical authorisation include:

1) permits for the installation of radio transmission equipment together with the reservation of the corresponding radio frequency channels;

2) permits for the use of radio transmission equipment;

3) permits for the use of number series, identification codes or short codes together with the reservation of corresponding number series, identification codes or short codes.

(3) The conditions to be established by a technical authorisation:

1) efficient use of radio frequencies and to ensuring of control thereof;.

2) use of number series, identification codes or short codes;

3) compliance with the environment, health protection and planning requirements;

4) ensuring of the quality, availability and reliability of the telecommunications network.

The Communication Board decides the issuing of the licence or refusal within six weeks.

4.3.3 Universal Service

Although the obligation to provide a universal service has not been explicitly expressed in the Concession Agreement, it stipulates the obligation of the concession holder to provide basic services, assist the subscriber and compile the telephone directory. According to the Concession Agreement, AS Eesti Telefon has to present to the Estonian Government annual updated development plans on the developments in rural areas. In order to put an end to the current cross-subsidisation between different services and customer groups and to prepare for the expiry of exclusive rights, AS Eesti Telefon intends to raise the rates for private customers and lower those for business customers and to lower the rates of long-distance and international calls.

The Telecommunications Act contain several important provisions concerning universal services, but considering the exclusive rights granted to AS ET, the obligation to provide the universal service of a public telephone network operator shall be applied from 1 January 2001 (§ 108).

The Act (§ 5) provides that the universal service is a set of telecommunication services that secures an access to the public telephone network at the same reasonable rate for all consumers in the area defined in the activity licence of the public telephone network operator.

Such a set of telecommunication services consists of a telephone service (1), Internet service (2), public pay telephone service (3) and the possibility to get a free connection with the short numbers of the police, emergency medical aid and rescue service (4).

In case of certain conditions the National Communications Board can relieve the operator of the public telephone network on the basis of its request from the obligation to provide universal service (§ ).

4.3.4 Tariffs policies

According to the Concession Agreement, AS Eesti Telefon has the right to set its own tariffs to the services provided. It has the right to alter the rates no more than four times a year and the changes of rates have to reflect adequately the expenses of ET for the provision of the respective services and take into account the average income of an Estonian family. Changes of tariffs have to be agreed between ET and the Government.

The Telecommunications Act regulates the pricing mechanism of the following services:

• provision of an universal service;
• interconnection of telecommunication networks;
• access to the public telecommunication network;
• provision of a leased line service.

According to the Telecommunications Act (§ 49 - 54) the changes in rates have to proceed from the expenses made for the provision of the service. A telecommunication operator accounting for at least 40% of the turnover of a specific public telecommunication service market (e.g. AS Eesti Telefon) and providing dedicated line service, enabling access to the telecommunication network or connecting its telecommunication network with another telecommunication network has to bring the accounting of charges for the above-mentioned telecommunication services and the respective cost accounting system into conformity with this Act by 1 October 2000.

Connection with the short numbers of the police, emergency medical aid and rescue service free of charge is deemed as a universal service.

4.3.5. Quality of Service

According to the Concession Agreement, AS Eesti Telefon has to present to the Estonian Government annual updated plans for the quality of services and is obliged to use the technology that improves the quality of services. The Government has not approved the plan for 2000, as there are disputes concerning the volume and contents of the plan.

According to the Telecommunications Act the public telecommunication network operator is obliged to arrange the removal of a failure within the next working days after becoming aware of the failure.

4.3.6 Interconnection

According to the Telecommunications Act (§ 41) an enterprise with significant market power is obliged to link networks within two months from the reception of the respective application and in case no agreement is reached, the National Communications Board will intervene. All operators have to be treated equally.

5. Protection of personal liberties and rights

5.1 Protection of copyright and intellectual property rights

Besides Copyright Act (Autoriõiguse seadus, RTI 2000, 16, 109) regulating the area there are also:

• Layout Designs of Integrated Circuits Act (Mikrolülituse topoloogia kaitse seadus, RTI 1998, 108, 1783)

• Industrial Design Protection Act (Tööstusdisaini kaitse seadus, RTI 1997, 87, 1466);
• Patent Act (Patendiseadus, RT1 1994, 25, 406);
• Useful Model Inventions Act (Kasuliku mudeli seadus, RT1 1994, 25, 407);
• Trade Marks Act (Kaubamärgiseadus, RTI 1998, 15, 231).

In 1993 Estonia (RT II 1993, 25) ratified the Convention on the Establishment of the World Intellectual Property Organisation (WIPO) signed on 14 July 1967 in Stockholm.

In 1999 Riigikogu (Parliament) adopted:

• Act on Accession to the International Convention on the Protection of the Performer, Producer of Phonograms and Broadcasting Organisation ";
• Act on Accession to the Convention on the Protection of the Phonogram Producer against Unauthorised Copying of Phonograms;
• Act on the Ratification of the European Convention on Cross-Border Television and the Protocol Amending the Convention.

Business Software Alliance is also actively operating in Estonia, next to the extensive information campaign it has inspected companies in co-operation with the police and attained the first victories in court over traders in pirated copies and companies that have used pirated software.

5.2 Privacy, data protection, consumer protection

The Communications Act of the Republic of Estonia adopted in 1991 (RT 1991, 3, 49) stipulates that everything concerning messages communicated through correspondence and the telecommunications network is the secret between the sender and the recipient." (§ 5).The Telecommunications Act (§ 36) also stipulates that "The telecommunication network operator and the provider of the telecommunication service is obliged to keep confidential all information concerning users that they have become aware of in the course of provision of the telecommunication service, including the fact of using the telecommunication service." Such information can only be disclosed with the consent of the sender and recipient of the message. The telecommunication enterprise can, however, preserve and process for its own purposes certain data concerning the message (volume, payments, etc.), but is obliged to delete such data in the course of one year from the provision of the telecommunication service. In exceptional cases (surveillance) the telecommunication company is obliged to issue the information to the respective government agency.

In 2000 Riigikogu (Parliament) adopted the Digital Signature Act (Digitaalallkirja seadus). The Act gives a digital signature and time seal legal power equal to that of an ordinary signature. Also, criteria for certification organisations are determined.

The aim of the Personal Data Protection Act (Isikuandmete kaitse seadus, RT1 1996, 48, 944) that came into force in 1996 is to protect the fundamental rights and liberties of an individual in the processing of personal data pursuant to the right of an individual to acquire freely the information distributed for general use. Personal data have been divided into sensitive and non-sensitive personal data.

The Databases Act (Andmekogude seadus, RTI 1997, 28, 423) that came into force in 1997 regulates issues related to databases.

The Consumer Protection Act (Tarbijakaitseseadus, RTI 1999, 35, 450) came into effect in 1994.

5.3 Freedom of expression and information

The main principles of freedom of expression and information are laid down in the Constitution of the Republic of Estonia (Eesti Vabariigi Põhiseadus):

• § 44. Everyone has the right to freely obtain information disseminated for public use. All state agencies, local governments, and their officials have a duty to provide information about their activities, pursuant to procedure provided by law, to an Estonian citizen at his or her request, except information the disclosure of which is prohibited by law, and information intended exclusively for internal use..
• § 45. Everyone has the right to freely disseminate ideas, opinions, beliefs and other information by word, print, picture or other means. This right may be restricted by law to protect public order, morals, and the rights and freedoms, health, honour and good name of others... There is no censorship.

Yet there are no laws regulating the area.

6. Information Society Policies

6.1 Umbrella Policies

Riigikogu (Parliament) approved the Principles of the Estonian Information Policy (Eesti infopoliitika põhialused, RTI 1998, 47, 700) already in 1998. The document determines the main principles for the development of the information society and defines information policy as following:

Information policy is an integral part of public policy. It reflects the principles of the actions of the state in the creation of an information society – areas of interest and regulation mechanisms - in an era of rapid technological change. Government information policy takes into account the goals set up in regulating different spheres of social life and introduces opportunities for presenting innovative solutions.

The basic principles have been concretised in the Information Policy Action Plan (Eesti infopoliitika raamkava) approved by the Estonian Government. On the basis of the plan government agencies make their annual proposals (with schedules, sources of finances, responsibilities, etc.) for the attainment of the objectives set out in the Principles of the Information Policy.

6.2. Application Areas

6.2.1 Government

Estonian Informatics Council advises the Government of the Republic in the issues about information society. Its main areas are strategic planning, giving expert opinions on legislative acts in the area of informatics, reviewing the developments plans of State Information Systems. The Council also annually updates the Estonian Information Policy Action Plan.

Estonian Government has decided to set the following priorities for 2000 and 2001:

• data communication programme of the counties: Village Road (Külatee);
• document management programme of government agencies;
• activities related to the creation of legislative acts, organisational structure and technological environment required for the application of digital signature;
• programme for the informatisation of higher education: Tiger Leap in Institutions of Higher Education ("Tiigrihüpe kõrgkoolides").

Department of Public Administration Reform that was set up in the State Chancellery in January 1999 published the document Basic Principles for the Administrative Reform Programme of the Government of the Republic ("Vabariigi Valitsuse haldusreformi programmi lähtekohad") in December. One of the priority areas mentioned in this document is the improved application of information and communication technologies in the public sector. The Digital Signature Act adopted by Riigikogu (Parliament) will also surely contribute to the emergence of the application projects.

6.2.2 Education

The national programme Tiger Leap was launched in Estonia in 1996 with the main goal of development of the Estonian basic and secondary education through the application of information and communication technologies. The programme is mainly directed to schools of general education, but comprises also basic and vocational education.

An important activity for the development of infrastructure has been carried out by the Estonian Education and Research Data Communication Network. EENET manages, co-ordinates and develops the data communication network of research, educational and cultural institutions.

In autumn 2000 the applied IT College will be opened and will start preparing IT specialists.

6.2.3 Research and Development

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 Research and Development Council is operating at the Government. Academy of Sciences is the umbrella organisation of research and development institutions. The national innovation system is described in detail in the following graph.

Source: PHARE, Evaluation of Estonian Innovation System, ES 9620.01.01

Estonian spending on Research and Technological Development amounted to MEUR 24 (EEK 376 million) in 1998. This sum is a little over 0.5 per cent of GDP and the government’s share is around 75 per cent of total financing. Recent findings (PHARE, Evaluation of Estonian Innovation System) show that Estonian RTD is very much oriented to basic and applied research, which do not have very many links to the product and process development of industries. Also, it is stated that Estonia has revealed a comparative edge in rather traditional industries: wood and furniture industries, textile and clothing industries, food industries and some chemical products.

6.2.4. Other

Although ICT is also extensively used in logistics, culture, entertainment, tourism, medicine, etc there are no remarkable application success stories having outstanding impact on information society developments.

Retail trade and especially financial services using extensively ICT are developed well, but these have been the initiatives of private sector and Government has had the role of catalyzer.

II - On-going developments

1. On-going changes in the institutional structures

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 entrepreneurship 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 reorganisation of the Estonian Infrastructure and Transport Development Foundation; and the reorganisation of the Estonian Regional Development Agency under the Ministry of Internal Affairs.

One possible change is related to the joining of the Ministry of Economic Affairs and the Ministry of Transport and Communications. For that purpose the interministerial commission has been established at the beginning of 1999 that prepares legal documents and solves administrative issues if joining is to happen (probably in 2000, if it is deemed necessary).

2. On-going changes in the regulatory framework

2.1 Telecommunication liberalisation

The market of telecommunications will be fully liberalised from 01.01.2001.

In the area of telecommunications various disputes are going on (incl. court actions):

• As the main owner (60%) of the cable distribution company Starman Kaabeltelevisiooni AS that has 26% of the subscribers of the Estonian cable distribution market is the big Swedish concern Telia that is also one of the owners of AS Eesti Telekom (24.5%), the further operation of AS Starman in the cable distribution market should be excluded. Therefore AS Starman filed an application to the Legal Chancellor in the middle of March this year, asking him to review the sections of the Cable Distribution Act that regulate ownership relations and are allegedly at variance with the Constitution and with the Association Agreement made with the European Union. At the same time the Swedish telecommunication concern Telia has already declared its decision to sell its 60 % participation in AS Starman.

• The Tallinn Administrative Court will continue on 3 May the proceedings concerning the complaint filed by Supertel Eesti OY against the Ministry of Transport and Communications. In 1999, Supertel Eesti OY started to provide long-distance calls through the Internet, but according to the precept of the National Communications Board, AS Eesti Telefon deprived the company of the possibility to use connection lines and number series.

• Starman Kaabeltelevisiooni AS has disputed the issue of a cable distribution activity license to Tallinna Kaabeltelevisioon that is using the trade mark Tele2. The license is in effect for ten years and allows to create a cable television network that is covering entire Tallinn.

• Tallinna Kaabeltelevisioon operating under the trade mark TELE2 has started to take over subscribers from other cable distribution companies. At the same time other companies (STV, Starman, Telset) are not interested in selling their networks. Takeover of subscribers by TELE2 has proceeded more slowly than the Cable Distribution Act requires.

• The dispute concerning the cable distribution activity licences of Tallinn led to the threat of the Estonian Association of Cable Networks to hold a day of warning in March, leaving 175 000 homes in Tallinn without the telepicture for protest. The planned event was cancelled after all, as the Association announced that it had observed positive developments in the attitudes of the Tallinn City Government and the Ministry of Transport and Communications.

• In March the National Communications Board required AS STV Kopli to end the illegal operation of the cable network by 24 March. The company has no license for the provision of the respective services.

2.2 New laws under preparation

An important law that should secure the constitutional right of the individual to free information is the Freedom of Information Acts (Avaliku teabe seadus) currently in preparation. It will regulate what kind of information and through which means shall be provided to the population about the administrative structure and its activities. The law will specify the nature of the information used internally in government agencies and access to such information; passive and active provision of information shall be provided, the latter will among other things take place also through the Internet. The law will be read by Riigikogu (Parliament) in the course of 2000.

Riigikogu (Parliament) has started to change the composition of the Broadcasting Council.

According to the decision of the Government the Ministry of Internal Affairs has to draw up a specified plan by May for the introduction of the ID card, incl. the amendments in laws or a new law, if necessary. It is planned to issue new Estonian identity documents, ID cards with the possibility to added several other functions, in 2002.

In March the Estonian Government adopted a decision on the establishment of the Estonian Information Technology Foundation and the Information Technology College should start work already in autumn 2000.

Riigikogu (Parliament) is discussing a new draft Public Procurement Act (Riigihangete seaduse eelnõu).

As the regulations of the Ministry of Transport and Communications regulating the area lost their effect with the coming into effect of the Telecommunications Act, more than 30 normative acts of lower levels are currently being prepared, incl. the radio frequency plan, numeration plan, etc.

2.3. Allocation of telecommunication resources

Pursuant to the Cable Distribution Act the National Communications Board is arranging public tenders that will be carried out by municipalities for the issue of cable television network licenses.

Pursuant to the Telecommunication Act the National Communications Board is also issuing licences (activity licences, technical licences) to operators of the public telecommunication networks or providers of public telecommunication services.

In February, one of the largest companies providing Internet services in Estonia, AS Uninet, was issued a data communication licence for the creation, formation and operation of a public communication network. The company has made a lot of investments in Estonia, preparing for the opening of the market with the expiry of the exclusive rights of AS Eesti Telefon.

On-going changes in IS policies

The Estonian Information Policy Action Plan is constantly updated. The last version of the plan and the changes offered by the Informatics Council to that plan were approved by the Government on 1 June 1999 and the document will be updated in the course of 2000.

On 15 December 2000 the Digital Signature Act will come into force in Estonia, creating according to the evaluation of experts a favourable soil for the emergence of additional IS projects.