Estonians embracing wireless, online world

By Michael Tarm
Associated Press

TALLINN, Estonia — A crumpled piece of paper taped on the locked door of a bank branch at 125 Parnu St. provides the evidence: Closed.

It's a common sight along this capital's streets. But it's not a sign of financial calamity.

Banking is actually booming in this former Soviet republic — via Internet. The number of Estonians who bank online soared from zero in 1997 to 700,000 this year. That's half the country's 1.4 million people.

From Tallinn to Tartu, scores of bank branches have closed, forsaken by cybersavvy Estonians. Nearly all businesses, from one-man shops to utilities, interact with banks in cyberspace.

The rapid embrace of online banking is but one example of the remarkable tech transformation of this Baltic nation, where most people didn't even have a phone when Soviet control ended in 1991.

Estonia has the most advanced information infrastructure of any formerly communist eastern European state.

Dubbed E-Stonia by some, the country ranked No. 8 out of 82 countries in putting the Net to practical use in a recent World Economic Forum report. The country ranked No. 2 in Internet banking and third in e-government.

Last month, the government launched a one-stop home page for online state services. Estonians can use it to digitally sign government forms or legally binding contracts with other people.

The government also set up a site called "Today, I'm Deciding" to let citizens offer their own opinions on legislation. It's got a chat room where they can debate the merits of bills or offer up legislation of their own.

Estonia's progress is especially impressive considering its condition at the time of the Soviet collapse, when you could count the number of modern personal computers on two hands, said technology consultant Linnar Viik.

That relative backwardness proved an unexpected benefit. Estonia leapfrogged countries wedded to older technologies.

Many Estonians who now rely on wireless phones never had a land-line phone. And most who now use the Internet to pay bills have never used a Western-style checkbook.

Part of the technology revolution can be attributed to Estonians' famously taciturn but curious nature.

"If a Frenchman loves to sip wine with his friends and a German enjoys his beer, then an Estonian likes to sit behind his computer on a dark evening, surfing the Net and at the same time talking on his mobile phone," Estonian communications executive Toomas Somera once said.