Construction of pan-Estonian high-speed internet optical lines network EstWin, launched with much media furore a couple of years ago, has come to a standstill.
EstWin evolves into playground for the big
12th August 2013, 13:58
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Still heralded in 2011 and patronised by minister of economy and communications, EstWin will not be completed by 2015; rather by 2017 – with luck. Also, it may not come as the 6,640 km optical lines network originally planned. This year, construction is at a standstill, by end of 2012, 2,300 km were completed. Therefore, for large areas, the project remains a dream.
For the development of its fourth generation mobile network (4G), EMT also used the completed sections of EstWin optical lines. However, 4G is currently having very few users and even G3 not functioning properly in many rural areas, even though operators’ maps show near 100 per cent coverage of Estonia.
The EstWin idea was that 98 per cent of Estonian households ought to have had optical lines within 1.5 km range, minimum. From there, private companies are supposed to see to it that the homes nearby have web connections of 100 megabit speed. Such companies are lacking, however: smaller entrepreneurs, mainly involved in radio link internet business, are not interested in EstWin, as for then, rental of the lines would be expensive.
Business interests rule
The Estonian Broadband Development Foundation (ELASA), created to build and manage the network, is founded by eight telecoms with international backgrounds, dominated by Elion, EMT, Elisa and Tele2. The foundation’s council also includes a representative of Ministry of Economic Affairs and Communications.
As a rule, Elion uses the completed sections of the network in villages and small towns featuring larger blocks of flats, in order to provide people with faster Internet and their smart TV. Low density areas rarely register in Elion’s interests. Mobile operators, in their turn, let ELASA dig optical lines to their masts, launching 3G or 4G mobile Internet from there to clients.
Even so, in certain areas mobile operators’ Internet service is complained about, being too instable and with fluctuating speeds – no matter the coverage maps bravado. And this is where smaller radio link internet providers or private local initiatives might come into play, takings cables to homes or creating radio links. Alas, such players are not interested in EstWin.
According to Raivo Laats, CEO of Kernel (leading radio link internet provider in Tartu, Jõgeva and Valga Counties), rental of optical lines would be too expensive for his company. «Instead, it is more reasonable for me to pump sufficient amounts of data through the air, for free,» said Mr Laats. «True, the EstWin cable might be more stable and offer faster Internet; even so, country folks would not be able to buy such service.»
In Tartu and Viljandi Counties, radio link internet is also being provided by SonicTest; its chief Imre Kuus says that EstWin is a 4G-network project in essence built for mobile operators – for EU money. «Feels like they built the network for their mobile masts,» said Mr Kuus. «The rental price is so high that smaller service providers would not collect such money from the villages.»
Mr Kuus doubts if the 6,640 km EstWin will ever be completed at all. Rural areas are draining from people; and, to reach the mobile mats of ELASA founders, such volumes would not be needed. Elion also not being interested in laying cables to low density area farmhouses.
No money
In 2010, state aid permission was granted for EstWin by European Commission; the document reads that the network’s owner i.e. ELASA shall offer the EstWin network to electronic communication companies on equal conditions, with no discrimination allowed. Formally, the condition has not been violated; still, for some reason, EstWin is only affordable for large companies.
ELASA head Olav Harjo confirms that the work is lagging behind original timeline. Right now, fervent construction ought to be underway, to complete the promised 6,640 by the next year but one.
At the start of the project, press releases on EstWin financing and completion were very confident. Now, it is becoming apparent that the messages were not backed by money. «For starters, the government found a little money, from structural funds,» says Mr Harjo. All in all, that was 350 million Estonian kroons; however, it was known already then the EstWin costs would climb over a million kroons. «Back then, already, finance minister Jürgen Ligi asked the government where the rest of the money would come from. To that, the other ministers replied that as the initial 350 million is ploughed into the ground, we will see.»
According to Mr Harjo, regional Siim Kiisler has now again found €5m to continue with EstWin construction. Even so, that money will probably go to use next spring only. In 2014, Europe enters into its new budget period; the, says Mr Harjo, it is planned to pour about €50m more into EstWin.
«To my knowledge, this sum has been agreed in the government.» According to Mr Harjo, it would be possible to build about 1,500 km of EstWin optical lines a year, in Estonia; thus, construction would take three more years, roughly. Getting new period’s structural money and dealing with bureaucracy will also take time; so, with luck, the network might be completed in 2017.
Mr Harjo confirms that up to now, smaller players have not been overly active in using the EstWin network to take Internet into homes. «We have two or three smaller companies, renting some shorter sections,» said he. «Of course we will need to sell our network more actively.»
Even so, Mr Harjo claims over 10,000 families have gained access to Internet or been able to improve their connection, by now.
For instance, EstWin has reached Risti Commune in Lääne County; community mayor Rein Kruusmaa is not overly excited. Indeed, community mayors mostly talk of EstWin as a kind of local municipality government «internetisation» project – Risti government also having a faster web now.
According to Mr Kruusmaa, inhabitants of low density areas have not profited from EstWin, so far; the larger towns of the community having secured a faster Internet from Elion – but that was not bad before, either. Meremäe commune mayor Rein Järvelill, in South-East Estonia, praises EstWin as their government internet has gained speed. He admits, however, that in low density area homes, mobile internet continues to be uneven. For whom, then, was EstWin built? Where is 100 megabits per second, promised for Mr Järvelill’s home?
Europe helps
According to Aivo Lepp, infosystems advisor at Ministry of Economic Affairs and Communication, the only option is financing EstWin construction for about 4,000 km, finding EU structural money for that. «This is a topic for the new budget period, to begin next year. As structural funds, by definition, are meant for a one-off push,» said Mr Lepp.
According to Mr Lepp, the construction ought to be completed in 2015; even so, in European Union as a whole, 2020 is the overall desired deadline. «By then, super high-speed Internet should be available to us all; and that is what we are considering ourselves, actually. The truth is, we will not be ready by 2015.» According to Mr Lepp, it would be wonderful if smaller local operators would spring up, offering alternatives to mobile operators and Elion. «But it cannot all come overnight,» said he. «What matters a lot, also, is local initiative.»
What is EstWin?
• EstWin is joint project by Ministry of Economic Affairs and telecoms, originally aiming at covering rural areas of Estonia with optical lines network by 2015.
• As a result, 98 per cent of Estonia’s households, enterprises and establishments ought to have been within 1.5 km of the network. The distance to consumers was to be covered by mobile operators or local companies. All inhabitants and establishments were supposed to have been guaranteed, irrespective of location, access to Internet connection up to 100 Mbit/s.
• The construction launched in August 2010 and went on for 2011 and 2012. State aid licence was granted to Ministry of Economic Affairs and Communication, by European Commission. EstWin’s 2,500 km basic network was supposed to be finished by end of last year. In reality, about 2,300 km were finished. According to plan, the total 6,640 of EstWin should be completed in 2015. For the development, about 350 million Estonian kroons were found by the government, from EU structural funds; the 15 per cent self financing was laid on telecoms. Last year, the 350 kroons run out; at the moment the work stands still.
• Regional minister Siim Kiisler has found €5m more to continue the work; even so, construction is only to continue next spring, probably. The €50m yet lacking are hoped to be obtained from EU next budget structural funds.