Third generation, or 3G, communication has been under discussion in Estonia since last year, when major suppliers Ericsson and Nokia began to promote their versions of the next stage of mobile telecommunications, which will gradually replace the GSM network.
Although several experts believe the Estonian market is not yet ready to for the new mobile communications standard, which would reportedly be more expensive for consumers, the Estonian state has kept pace with European trends and in January founded the UMTS commission, which consists of eight specialists from the Communications Board and the Ministry of Transportation.
According to Kuldar Vaarsi, a Transportation Ministry spokesman, the commission is studying the way third generation technology could be introduced in Estonia.
"The commission has to decide the way the 3G license will be given; through a so-called beauty contest or a regular auction tender," he said.
There will only be one 3G license for the whole country and the new network will at first cover only Tallinn, said Margus Hunt, a Nokia representative in Estonia.
The UMTS commission is now studying similar licenses elsewhere in Europe, said Vaarsi. "But the commission will probably come up with an original project which will take into account local conditions," he said. "We can't be sure if a new mobile communications operator will be founded especially for the 3G service (as has happened in some European countries)."
Executives from Nokia and Ericsson's branch offices in Estonia said the local market is promising, given the rapid growth of cell phone users.
"Paperless government, more people using mobile phones every day, all that makes us think Estonia will soon experience the 3G," said Yaron Ben Schlusch, Ericsson's product manager.
Schlusch said that although the European mobile communications market is not emerging as rapidly as Japan's, soon UMTS will be common.
Veiko Sepp, president of Ericsson Estonia OU, said the advantage of a small country like Estonia is that any innovation can be adopted here faster.
Ericsson representatives declined to comment on implementation costs of the 3G network in Estonia. So far the only sum mentioned is Nokia's forecast that it will take two more years and 5 billion kroons ($31.95 million) to set up a UMTS network in Tallinn.
Schlusch stressed that the Estonian government will benefit from a faster introduction of the next generation of mobile communications through more tax revenue.
"Our surveys show that users of interactive services brought by the 3G systems talk more and use SMS services more actively," said Schlusch.
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