Estonia's supplementary budget includes EUR 15 mln for high-speed internet in rural areas

  • 2020-04-03
  • BNS/TBT Staff

TALLINN - The bill of the supplementary budget for 2020 submitted to the Riigikogu on Thursday includes 15 million euros for speeding up the establishment of high-speed internet connections in rural areas, Postimees reported. 

"It has been done at a pace of five million euros a year thus far. The additional amount is to do with us having a clear idea of the bottlenecks now that remote working has increased massively," Finance Minister Martin Helme said.

Chairman of the parliamentary finance committee  Aivar Kokk said that high-speed internet should be brought to as many places as possible quickly.

"Now that many people are working from home offices in rural areas and everybody's online at the same time, the speed of internet leaves to be desired even in places where it more or less met the need earlier," the Isamaa MP who took part in preparing the measure said.

According to Kokk, about 200,000 households across Estonia need faster internet. If the state was to make the entire investment alone, the money would suffice for 50,000 households, as the condition is that a connection must be built for 300 euros.

One of the options discussed is to add contributions from the municipality and the household, such as the state paying 200 euros, the municipality 50 euros and the household another 50 euros.

"We also thought that families with school-age children could be exempted from own contribution," Kokk said.

The Ministry of Economic Affairs and Communications has been tasked with announcing a tender for the establishment of high-speed internet connections as soon as possible.

"It could probably be done around April 20, the conduct of the procurement would take a couple of more months -- we could have the name of the builder by Midsummer perhaps," Kokk added.

According to Kokk, the money is to be spent over a period of two years. 

Laura Laaster, PR adviser at the Ministry of Economic Affairs and Communications, said the ministry is only beginning to analyze how it would be possible to invest the 15 million euros into the development of broadband as effectively as possible and it was still too early to speak about specific financing arrangements.

The Estonian Broadband Foundation and the data communication network nonprofit MTU Eesti Andmesidevork have built up a relatively thin main network of high-speed internet covering all of Estonia with the support of EU structural funds. The last mile tender in that project was won at the end of 2018 by the state-owned distribution network company AS Elektrilevi, which is about to establish 200,000 last mile connections over a period of five years for 100 million euros. The own contribution of households is 199 euros.

Oliver Ruus, head of communications services at Elektrilevi, told Postimees that during 2019, the company established a possibility to connect for 9,000 clients, of whom 1,700 actually joined the network during the year.

"This year, we have opened an additional 1,300 addresses in five counties for accession and will be opening new regions in accordance with the project plan," Ruus said.

In addition, the company Eesti Andmesidevorgu AS is planning to build broadband networks in South Estonia. A year ago the company collected an advance deposit of 153 euros from around  6,000 interested households.