According to DataReportal’s key insights on digital adoption and usage in Estonia as of early 2024: Estonia had 1.24 million internet users at the beginning of 2024, with an internet penetration rate of 93.7 percent. In January 2024, Estonia had 1.04 million social media users, representing 78.7 percent of the total population. There were 1.92 million active cellular mobile connections in Estonia in early 2024, equating to 145.7 percent of the total population.
Data from GSMA Intelligence shows that many people use more than one mobile connection—such as one for personal use and another for work—making it common for mobile connection figures to exceed the total population count. GSMA Intelligence also reports that the number of mobile connections in Estonia increased by 17 thousand (0.9 percent) from the start of 2023 to the start of 2024.
Investment in Estonia’s telecom market has concentrated on upgrading fixed-line infrastructure and deploying 5G services. Fixed broadband subscribers are gradually transitioning from DSL to fiber, with legacy copper networks being replaced.
The mobile network operators (MNOs) Telia, Elisa, and Tele2 have established comprehensive LTE infrastructure and have recently directed investments towards 5G. Several 5G trials have been conducted, but commercial service launches have been hindered by a lack of available spectrum. The regulatory body began addressing this issue in May 2022 by awarding a 3.5GHz concession to Elisa. A second license will provide sufficient spectrum for national coverage by 2022. Delays in spectrum allocation were partly due to challenges in offering services in areas bordering Russia.
Progressive government policies on broadband infrastructure and an active regulatory regime have also contributed to Estonia achieving one of the highest broadband penetration rates in Europe. Broadband is available through various fixed-line and wireless technologies, including ADSL2+, FttP, cable, Wi-Fi, and WiMAX. Elisa’s consolidation with the main cable company Starman in April 2017 has enabled it to offer a more comprehensive suite of bundled services, enhancing its competitiveness with Telia.
2G is on 900 and 1800 MHz, 3G is on 900 and 2100 MHz with good coverage, 4G/LTE has started with all providers on 800, 1800 and 2600 MHz (Bands 3, 7, 20) plus 2100 and 2300 MHz (Bands 1 and 30) on Tele2 all over the country and is generally available for prepaid. 5G has started to be available on some high-data postpaid plans from Telia since November 2020 and on Elisa since June 2022.
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Telia Eesti is part of Swedish telecom giant Telia Company, Telia has the best overall coverage in Estonia and focuses heavily on 4G/LTE services.
The major mobile operator in Estonia is Telia and it has a market share of over forty percent. They provide the largest network coverage consisting of 4G and 5G services available in most major cities across the country. Although Telia’s plans are mainly costlier than rivals, they provide more data and speed.
Ericsson and Telia have launched the Baltic region's first enterprise 5G private network, Ericsson Private 5G. This private cellular network became operational in early May at Ericsson’s supply site in Tallinn, Estonia.
Ericsson highlights that the 5G private network’s advanced capabilities, including reliability, predictable latency, security, and speed, enable various use cases such as asset condition monitoring and management, computer vision, digital twins, collaborative robotics, and precise indoor positioning.
The Tallinn supply site is strategically significant to Ericsson’s global supply chain, accounting for nearly half of the company’s new product introductions (NPIs). These NPIs require extensive research and development to ensure the products are relevant, competitive, and scalable, which is crucial for their successful market introduction.
Telia Eesti switched off of its 3G network in September 2023 this has enabled Telia to focus on the build-out of its 4G and 5G networks instead. The company currently has 150 5G base stations in Tallinn.
Elisa is the number two mobile operator in Estonia, owning about 30% of the market. These firms often give the same kind of network coverage that we find in Telia at reasonable prices. Elisa is a little bit slower compared to Telia, but both speeds are sufficient for most users. Elisa Group’s Estonian arm offers competitive rates, especially for family plans and long-term contracts. The company is rapidly deploying 5G in major cities.
With regards to spectrum, in May 2022 Elisa won 130 MHz of spectrum for which it paid EUR 7.2 million. Then in November 2022, it won 2x10 MHz of 700 MHz spectrum which laid the foundation for it's 5G coverage. Finally, in May 2023 Elisa won 800 MHz of 26 GHz spectrum for EUR 1.63 million. It hasn't commercially used the spectrum yet.
Tele2 Eesti is a subsidiary of Tele2 Group, Tele2 boasts the fastest mobile broadband speeds in the country. It has invested significantly in 4G and emerging 5G networks.Tele2 has the smallest share of approximately 20% in the Estonian mobile market. They are the cheapest, but their network coverage is only half of what Telia’s and Elisa’s are. Tele2 is are also among the three operators, their speeds being the slowest but satisfactory for basic internet access.
Back in 2022, Tele2 won the 700 MHz spectrum auction. It already had 3.5 GHz licenses and was also using 2300 MHz band for 5G. According to their press release, the added 700 MHz frequency band would allow them, in addition to better coverage, to offer services that do not require large data volumes, such as Internet of Things (IoT) services.
Alongside rivals Telia and Elisa, Tele2 obtained 800MHz of spectrum in the 26GHz band back in 2023. It spent EUR1.6 million (US$1.7 million) on 24.7-25.5 GHz despite the fact that there are currently no devices commercially available in Estonia capable of operating via the 26GHz band.
Tele2 previously revealed that Nokia is its primary partner for 5G core networks in the standalone era, with deployment expected to have started during 2021. Nokia said it will deploy standalone 5G core and voice-over-5G technology for Tele2 operations in Sweden, Latvia, Lithuania and Estonia.
The Baltic countries climbed closer to the top of the global mobile data usage chart: Latvia #3, Lithuania #7 and Estonia #11 (of 39 countries) https://t.co/dJO6QUwOAx pic.twitter.com/2A6m4KiAST
— Tefficient 🚥 (@tefficient) July 8, 2024
Tefficient's latest report identified that the data usage in Estonia has been growing along with other Baltic countries as can be seen in the chart above.
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