Estonia revamping rural fiber rollout after first effort falls flat
Estonia's first rural fiber optic rollout failed to gain traction, but the state is hoping a new, stricter plan will make connections cheaper for households. Experts, however, remain skeptical.
The EU has set a 2030 target for universal gigabit fixed internet connections. In sparsely populated Estonia, laying cable in rural areas is extremely costly, which is why the state has subsidized it for years.
The next €45 million round of investment will come with stricter conditions after previous network expansion efforts failed to deliver, with only a quarter of households signing up for fiber optic service.
Minister of Justice and Digital Affairs Liisa Pakosta (Eesti 200) said the state is now tying funding to actual connections to ensure the state-supported service actually reaches people. Household connection fees during construction will also be capped at €200.
"I've received a lot of feedback that people want to sign up, but are being asked to pay €13,000–14,000 instead of €200," she added.
On top of this fee cap, developers will also now have to cover 30 percent of costs themselves. Under the new scheme, companies can receive up to €4,500 per connection, which should extend fiber to at least 10,000 more addresses.
The Estonian Broadband Development Foundation (ELASA), which oversees the fiber expansion, says the new rules are reasonable but warns that fiber alone may not be the best way to reach every household in the country.
"I'd say bringing fiber to everyone seems rather questionable," acknowledged ELASA director Priit Soom, noting that a state analysis last year estimated the cost at around €800 million.
"It would probably make more sense to address the most remote and isolated households with other technologies," he added.
Tech journalist Henrik Roonemaa said that long term, broadband cable remains the most sustainable solution — but pointed out that connection gaps exist well beyond rural areas.
"We're not just talking barns and forest farmhouses; we're also talking Estonian towns and even cities where entire neighborhoods lack fiber or decent cable [internet]," Roonemaa said. "People live close together there, and we still have a problem."
At the Justice and Digital Affairs Ministry, Pakosta added that talks are ongoing with providers to strike a balance on where, and to what extent, new connections will be built.
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Editor: Johanna Alvin, Aili Vahtla
