BONJOUR L'ESTONIE

Starman looks to the future

Estonia’s leading cable operator Starman sees a future in which cloud services are integrated into devices.

Moreover, said Hanno Liiva, the company’s CTO, it expects see nPVR as more of a “killer service” and that in 10 years time everything will have been replaced by the cloud. Liiva was speaking at the Broadband TV News/SeaChange event in Stockholm ‘Delivering TV from the cloud throughout the home in the Nordics and Baltic Republics’.

Liiva added that Starman currently covers 53% of all households in Estonia and its services are received by a third of Estonians. Furthermore, its network is 100% DOCSIS 3.0-enabled.

Starman has pioneered the introduction of a number of services into Estonia and most recently, earlier this year, launched a smartphone app with nPVR scheduling.

Internet under fire from states seeking to control information

When the Freedom Online Coalition, a 23-government organisation that promotes an open and secure internet, selected Tallinn as the site for its fourth annual Freedom Online conference, the choice would prove timely and relevant.

As delegates gathered this week for the event in the former Soviet state, tensions had escalated yet again in Ukraine. Vladimir Putin had declared the internet to be a CIA plot and proposed the establishment of a separate Russian national internet. He also apparently had taken over Russia’s largest social network, VK.

Estonia, which shares a border with Russia and has a substantial Russian-speaking minority amongst its 1.4 million citizens, knows what it is like to live with an unpredictable bear looking over its shoulder. It understands the uses and abuses of covert surveillance, and propaganda wars.

And, it gets the internet – both its pluses and minuses. On the positive side, the young state remade itself into one of the world’s most cutting-edge online societies, where nearly everyone files taxes and votes online, pays for goods and services electronically, and avails of widespread free wifi in cities and towns.

On the negative side, it endured a major hacking attack – waves of attacks stretching over many weeks – when in 2007, a Soviet war monument was moved from the city centre to the outskirts of Tallinn.

Digital TV to soar in Eastern Europe

After years of being battered by inclement economic times, Eastern Europe's digital TV market is emerging as a stronger entity, says a report from Digital TV Research.

According to The Digital TV Eastern Europe report, digital TV penetration crossed the halfway mark of TV households in 2012, up from a third two years earlier and at the current rate will amount to two-thirds by the end of this year and 98.5% by 2020.

Of the 21 countries covered in the report, 13 will be completely digital by 2020 taking the lead of Estonia, the first to full conversion in 2012. From the 83.6 million digital TV homes to be added across the region between 2010 and 2020, Russia is set to contribute 40.7 million, with Ukraine increasing by 13.3 million and Poland 6.7 million.

In absolute terms, the number of digital TV homes will have tripled between 2010 and 2020; up from 41.0 million to 124.7 million. In the key paid-for sector, the number of digital pay-TV subscribers will have increased from 26.1 million (21.5% of TV households) in 2010 to 45.0 million (36.6%) in 2013 and to 73.6 million (58.2%) by 2020. Of the 52.3 million digital TV homes it calculates that will be added between 2013 and 2020, DTT is forecast to supply 24.9 million, digital cable 15.3 million, IPTV 6.6 million and pay satellite TV 5.8 million.

Looking at the business generated by the increased number of households, Digital TV Research predicts that pay-TV revenues in Eastern Europe will be 48% higher in the ten-year period to 2020 to $7.305 billion. Digital cable and IPTV revenues are set to more than double between 2013 and 2020, but satellite TV revenues, the mainstay of the industry, will likely only grow by 22% over the same period. Russia is expected to contribute $2.02 billion (28%) of the pay-TV revenues in 2020 — overtaking Poland in 2015 — and be responsible for nearly half of the region's $1.1 billion additional pay-TV revenues between 2013 and 2020. Russian TV ARPUs, traditionally very low, are set to increase.

Elisa launches LG G Flex smartphone in Estonia

Estonian mobile operator Elisa has started sales of the LG G Flex smartphone.

The device features a 6-inch OLED HD screen, 13 megapixel main camera and 2.1 megapixel front camera. It it is powered by the tetra-core Qualcomm Snapdragon 800 2.2 GHz processor and Android Jelly Bean 4.2.2.

The regular price of the smartphone totals EUR 789,00, and the discounted rate for subscribers is EUR 699,00.

The device is available in shops of the operator in Kristiine and Rocca al Mare commercial centres in the city of Tallinn.

LG Optimus G Android 4.4 KitKat begins rolling out for some users

Just a few months ago, LG France accidentally confirmed its LG Optimus G would be receiving Android 4.4 KitKat some time in October, although if you’re an owner of the 1-year-old Android smartphone, you’re probably well aware KitKat has yet to come your way. In fact, November came and went and still no Android 4.4 KitKat, but December looks like it’s the sweet month as the latest version of Android has started to roll out for the LG Optimus G.

As usual, there’s a catch. You see – Android 4.4 KitKat has been rolling out to the Optimus G in the lovely country of Estonia. In fact, the news comes from LG Estonia’s Facebook page, which at the time of this writing, has yet to retract their message, which when translated, reads: “Good news for LG Optimus G smartphone users – the Android 4.4 KitKat update is now available.”

We’re sure this leaves many of you LG Optimus G owners in other parts of the world wondering when you’ll be getting in on the Android 4.4 KitKat fun. Well – hopefully its rollout in Estonia is an indication that the software is ready to go primetime on the Optimus G, so let’s all hope it doesn’t take too long.

[Update: We received an email from LG Estonia that confirm the Optimus G received an update this week that allows users to access 4G connections for local carrier Elisa. At this time, LG Estonia doesn't know when Android 4.4 KitKat will be released on the Optimus G.]

Daniel Perez

Google may have been a better fit for Skype than Microsoft, says Skype co-founder

Google may have been a better fit for Skype than Microsoft, according to one of the video communication platform's co-founders.

Speaking at Oxford University this weekend, Skype co-founder Jaan Tallinn, said: "Google seems to be more ambitious if you look at the projects that Google is diversifying into, like self-driving cars and Google Glass. It perhaps would have been a better home for Skype."

Estonian-founded Skype, now 10-years-old, was acquired by Microsoft in October 2011 for $8.5 billion (£5.27 billion) but in recent years it could be argued that the product hasn't been developed as dramatically as some of the other communication platforms, such as Facebook.

Tallinn puts Skype's relatively slow development down to the fact that larger companies like Microsoft are less agile than start-ups, meaning it can take longer to deploy new features as there is more bureaucracy to get through.

Estonia to extradite cybercrime suspects to US

TALLINN – Estonia announced on Thursday that it would extradite to the United States three people suspected of a massive Internet fraud scheme in which millions of computers in around 100 countries were infected with malicious software.

US authorities filed cybercrime charges against six Estonians and one Russian in November 2011 and requested their extradition one month later.

The suspects – Estonian nationals Dmitry Yegorov, Timur Gerasimenko and Konstantin Poltev – will be sent to the United States under a 2006 bilateral extradition treaty. A fourth group member, Anton Invanov, was extradited last year.

According to the FBI, 500,000 out of the 4 million computers infected with malware were in the United States. The computers include some belonging to US government agencies, such as NASA and the Inland Revenue Service.

The suspects are accused of infecting computers with malware that secretly altered the settings on infected computers to re-route Internet searches to certain websites and advertisements.

The suspects received fees each time these websites or ads were clicked on or viewed by users. According to the FBI, the scheme generated about $14 million in illegitimate income. Estonian prosecutors believe the figure was double that.

Estonia opens first internet pharmacy

Estonia has opened its first internet pharmacy, reports Postimees Online.

Customers who live far from pharmacies can now have medicines ordered to their door and consult with pharmacists over the internet about prescriptions. Medicines will take three days to reach clients whilst delivery costs also apply.

Kadri Tammepuu, head of Terve Pere Apteek OÜ in Tallinn who launched the e-pharmacy said the process had been a time-consuming endeavor. "Being the first in Estonia, there was no-one to model ourselves after, thus, in cooperation with State Agency of Medicines, we developed a high level security environment for the Estonian market.

She added: "Going over the details took time. But now we can truly say that the quality of an internet pharmacy equals an ordinary one. It’s much more convenient."

Plans to launch another e-pharmacy in Tallinn by OÜ Valga Apteek are also in talks.

Estonia builds startup fund for another Skype

Estonia announced its plan to build a new fund of EUR60 million (USD81 million) to build another Skype in the country. The Baltic country sought to improve its venture capital industry to accelerate the development of startup tech firms. This was according to a report published by Bloomberg on its website.

According to Andrus Treier, head of government agency KredEx, the planned fund would compose of the EUR60 million from the European Union and another EUR20 million from private investors. The said fund would be created next year to replace financing services from state company Eesti Arengufond, the report stated.

Estonia was severely hit by the recession after Lehman Brothers Holdings Inc went down in 2008. The country aimed to build on another Skype technolgy as one of the ways to revive its capital market. Skype was founded in Estonia 10 years ago with venture capitalists  Janus Friis and Niklas Zennstrom, Bloomberg reported.

Estonian Art Museum website down for second day after cyber attack

The Estonia Art Museum (KuMu) website was cyber-attacked Tuesday afternoon, after which KuMu closed its homepage and hasn’t still relaunched it, LETA/Postimees Online reports.

A group hiding behind the acronym IDN or Indonesian Defacer Newbie, took over the website temporarily and announced that there is a breach of the homepage since the safety level of the website is too low.

KuMu communications and marketing department head Triin Soikmetsa said that the work of the homepage will be restored when they are convinced of the safety of the solution concerning the case. The access of the attacker to the museum's internal network and data in it is ruled out, she said.

"When ascertaining the nature of the attack and solving the problem, we have received help from the State Information Systems Board information security experts. We share the position of the board that it was a random case of defacement which wasn't targeted directly at the art museum," said Soikmets.

Last week, the web sites of Estonian defence ministry and Defence League were attacked. Then Anonymous Ukraine took responsibility for the attack.

EMT and Estonian banks launch NFC payments pilot

 

Mobile network operator EMT has begun pilot testing an NFC mobile wallet in Estonia, in partnership with Danske Bank, Nordea Pank, SEB Pank and Swedbank as well as retail group Tallinna Kaubamaja.

The 'Bank Payment Card in Mobile' pilot will involve 150 people who will use their NFC phones to pay for goods in department store Kaubamaja's Ilumaailm ('Beauty World') and Toidumaailm ('Food World') sections, at Selver stores at Järve and Pirita, and at several cafes.

Users' bank cards will be stored on an NFC SIM card's secure element — a choice made by the banks in August 2012.

"The main goal of the NFC pilot project is to test the know-how and process models gathered during the applied research phase," says EMT, "as well as to test the prototype of a secure mobile wallet and its convenience of usage in real life, and the possibilities to use the NFC technology in retail checkout payment solutions."

The pilot will run for three months, says EMT. The results will be analyzed and a decision will then be made on the future of the service. "The ultimate goal is to create a secure mobile wallet platform by using the 'Bank Payment Card in Mobile' service," EMT explains.

Karl Dyer

Estonia’s EMT and banks start testing "mobile bank card" prototype

Estonian mobile phone operator EMT in cooperation with Danske Bank, Nordea Pank, SEB Pank, Swedbank and Tallinna Kaubamaja Grupp launch a public pilot project on November 1, aiming to test the prototype solution of NFC (Near Field Communication) service "Bank Card in Mobile Phone", LETA/Postimees Online reports.

During the pilot project, a solution is tested where a client can use a mobile bank card just like using an ordinary bank card.

Instead of entering the card in a payment terminal, the terminal has to be touched with a phone and the payment has been conducted.

The test group includes 150 people who test the new payment solution in the Kaubamaja department store's Beauty World and Food World, Järve and Pirita Selver supermarkets and select cafes.

Only 11% of Romania’s internet users shop online, lowest share in the EU

Only 11 percent of Romanian internet users are online shoppers, this being the lowest share in the European Union, according to the recent data provided by Eurostat.

Romania is followed by Bulgaria, with a share of 17 percent and Estonia and Italy – both 29 percent.

The highest shares of online shoppers were registered in the United Kingdom, with 82 percent of the internet users shopping online, followed by Denmark and Sweden – both 79 percent and Germany with a share of 77 percent.

In the EU28 in 2012, 75 percent of individuals aged 16 to 74 used the internet in the previous 12 months, and 60 percent of them were online shoppers. “Ordering clothes & sports goods and booking travel & holiday accommodation are the most common online purchases amongst internet users,” according to Eurostat.

Find the entire Eurostat report here.

Who will build the €UR 600 million datacenter in Estonia ?

In the recent Estonian news, we found out that a company known as "Data Valley Enterprises OÜ" is planning to establish Europe's largest data centre in Estonia. According to the news published on the Estonian Äripäev, the company wants to establish a 30 000 square meter server farm with an initial investment of €170 million and then expand this to 200 000 square meters using a total investment of €600 million.

The announcement was made by the representative of Data Valley Enterprises, Jussi Vartiainen together with Eerik-Niiles Kross, who is currently in the running for the mayor of Tallinn. According to Vartiainen "Estonia has the ideal climate for server maintenance, innovative business environment and favourable taxation. At the same time in the workforce and land prices are cheaper than in western and northern Europe."

The initial server farm should be ready by 2017. Enterprise Estonia, an agency promoting business and regional development in Estonia, confirmed that the investors came to Estonian through their organisation and have presented the needed letters of guarantee.

However there still remains a lot of unanswered questions about the whole project. Such as, who is really behind such a massive investment? After all, there is absolutely no information about "Data Valley Enterprises", Jussi Vartainen does not seem to be present on any Social Media and Eerik-Niiles Kross announced the news conveniently on the verge of the elections. Is this just an elaborate political plot or an actual investment surrounded by mystery? We set out to find out.

Elisa says it now offers 4G services across entirety of Tallinn

Estonian mobile network operator Elisa has announced that its 4G LTE network now covers 100% of the capital Tallinn. The development comes just over a month after the cellco launched 4G services using 800MHz spectrum, having been granted such frequencies by the Estonian Technical Surveillance Authority (ETSA) in early August 2013; previously it had offered LTE using only the 1800MHz and 2600MHz frequencies.

The operator has highlighted the benefits of its lower-band spectrum when it comes to coverage enhancements, particularly for reaching customers indoors.

As previously reported by CommsUpdate, in rolling out 4G services using the 800MHz band last month Elisa claimed that it could provide superfast mobile broadband to 95% of the country’s territory via the combination of its 800MHz infrastructure and its existing 4G networks operating over the 1800MHz and 2600MHz bands.

Meanwhile, having deployed 240 new base stations for its 800MHz 4G network at launch, the operator noted that it had more 820 4G base stations in operation, including those deployed for its existing infrastructure.

Sales of laptop and tablet computers in Estonia increased by 8.7% in July

11,614 laptop and tablet computers were sold at the Estonian retail market in July 2013, which was by 8.7% more as compared to June, LETA/Public Broadcasting cites data of market research company GfK Retail and Technology.

56% of the computers that were sold were tablet computers, and 44% – laptops.

A total sum of bought portable computers totaled five million euros in July, the same as in June. An average sum an acquired laptop totaled 308 euros in July, which is less by 26 euros as compared to June.

Skype Estonia to get new CEO

Skype Technologies OÜ, the Estonian branch of the international brand, will have a new face in charge from September 4.

Current director Tiit Paananen will make way for Andrus Järg, the company said in a press release today. Järg has been with the company since 2006, leading various projects and holding management positions in research and development departments.

Sten Tamkivi, who led the company between 2005 and 2012 also left Skype Estonia recently after spending 12 months on hiatus studying at Stanford University.

Skype employs over 400 people in the country.

US venture capital firm hires former head of Skype Estonia

Sten Tamkivi, the former long-time executive of Skype in Estonia, has been hired by US ventural capital firm Andreessen Horowitz, writes Äripäev.

“Although I am still  very patriotic towards Estonia and Europe, I and my family are temporarily moving to Palo Alto,” Tamkivi wrote in his blog.

He added that he will be working as an EIR or so-called entrepreneur in residence in the firm. Essentially, it’s a temporary job that businessmen often use when they prepare for next steps in their career. EIRs typically earn about 180,000 USD (over 100,000 euros) a year in venture capital firms.

Tamkivi was head of Skype in Estonia in 2005-2012. Last spring he took a sabbatical to undergo a training course in Stanford University. Tamkivi says that he continues to advise seed companies and has invested up to 100,000 US dollars in two seed companies.

Andreessen Horowitz is a venture capital company founded in 2009 by Marc Andreessen and Ben Horowitz. The company has invested in Skype, Facebook, Twitter, LinkedIn, etc. According to Wikipedia, it has investments in 156 companies.

42-year-old Marc Andreessen is known mainly as the founder of the early web browers Mosaic and Netscape. Forbes estimated his assets at 600 million US dollars.

Toomas Hõbemägi

 

The iPhone weather station in your pocket

TALLINN — The iPhone has been used for many things, but with Shaka it can be a weather station. An Estonian startup has just started to ship the device that plugs into an iPhone or iPad audio jack and can currently measure windspeed and air temperature. There are plans to expand the device to measure humidity and air pressure too.

“This will be the smallest weather station you can have,” said Raigo Raamat, co-founder and CEO. According to Mr. Raamat, the device, which was designed and built in the northern-most Baltic state and costs $69.90, has a number of uses from crowdsourcing weather, through ventilation engineers wanting to test their work, to helping firefighters tackle forest fires. There are obvious military uses too (snipers, for example, need to know what the wind is doing).

Like many startups, Mr. Raamat started the company to solve his own problem. “I was a beginner windsurfer. Estonia has a long coast line and I was looking for a way to share wind information. This turned out to be impossible.” According to co-founder and CTO Jens Kasemets, there are only about 50,000 Internet-connected weather stations globally. “This is nothing like enough to cover the whole world,” he said.

Mr. Raamat said the long-term plan is to get enough units out so that they can crowd-source weather and allow much more accurate forecasting. However, distribution remains a problem for them, so at the moment they are concentrating on a number of specialist areas. “We want to get the devices into specialist sport shops,” he said. They are also targeting business cases. “There are a lot of people who need to know air flow,” said Mr. Kasemets. “Civil engineers, ventilation engineers.”

4G beauty contest shoots Estonia to the top of Europe's LTE leaderboard

Earlier this month, Estonia's largest mobile operator, EMT, announced that it had covered 95 percent of the country with its 4G LTE network. According to EMT chief executive Valdo Kalm, Estonia is the first country in Europe, and the third in the world, to reach the milestone. "Sweden and Denmark are the countries competing for the second and third place in Europe with about 50 percent of their territory covered with 4G LTE," he said, adding that globally only Estonia, Singapore and South Korea have passed the 95 percent mark.

EMT — which is owned by TeliaSonera, the Swedish telecommunications company that launched the world's first commercial 4G network in 2009 — opened Estonia's first 4G network in February 2010, when it was the 11th such network globally at the time. The second operator to come to the local 4G market was Tele2, the country's third-largest operator, which launched its network in November 2012. It was followed some months later by second-largest operator Elisa, which launched its LTE network in February this year.

Spectrum beauty contest

So far, Estonian mobile operators have only used 1800MHz and 2600MHz frequency bands for LTE. While higher frequencies provide better results in urban and densely-populated areas, the 800MHz frequency band — which just a few years ago was used for analogue TV in Estonia — is more suitable for covering larger areas and also offers better indoor connections.