We live in the digital age and are all digital citizens. This means that internet access is very important. Anto Aasa, a professor at the University of Tartu, says that the internet is necessary not only for reading news or communicating with friends but also for work.
In the European Union, including Estonia, regional differences are growing. Aasa and his colleagues studied how fast internet, IT companies, and their employees' places of residence are interconnected. The study used population data, internet connection information, and business registry data.
The study showed that fast internet is more accessible in cities. The tax income from IT workers helps develop better internet infrastructure. Fast internet is especially important for IT work and cloud environments.
Building fast internet is cheaper in cities and suburbs where more people live. The further into rural areas, the more expensive and poorer the internet connection becomes.
The study revealed that fast internet is concentrated around Tallinn and Tartu. Over 71,000 people live in areas without cable internet. These areas make up almost half of Estonia's territory.
IT companies are mainly located in Tallinn and Tartu. The further from cities, the smaller the share of IT companies. In regions with fast internet, IT firms make up 7.8% of businesses, while in areas with slow internet, it's only 2%.
Many IT workers live in Tallinn and Tartu, but even more in their surrounding municipalities. People with higher incomes can live where they want, not just where they can.
In regions with fast internet, the average income is 13% higher than in areas with slow internet. This affects local life and municipal tax revenues.
The digital divide is becoming a bigger problem in Estonia. The digital divide consists of four parts: internet access, skills, financial opportunities, and motivation. The state has helped develop fast internet infrastructure, but there is still much work to be done.
Due to the COVID-19 pandemic, more IT companies were established in regions with fast internet. A better living environment and internet attract additional people and businesses.