Internet penetration growth is a means to raise the quality of life of Estonian people and the country’s competitiveness in Europe. Within the last 1,5 years the number of regular Internet users has increased two times from 15% to 30%. The ambitious goal is to catch up Finland in three years. Means: - To offer people more possibilities for access to the Internet; - To help raise the availability, simplicity and user-friendliness of public sector services on the Internet; - To help the private sector to offer its services more broadly over the Internet; - To promote the Internet as a channel for accessing information and using services, changing people’s attitudes and organising Internet trainings. The development of public Internet use started with projects of Soros Foundation through which in total 70 Public Internet Access Points (PIAP) were established starting from 1997. Since 2001 Foundation Look@World initiated by banks, telecoms and IT companies raised the number of PIAP-s to 500. Goals of Estonian Broad-band strategy: - By 2006 50% of Estonian households should have connection min 256kb/sec (optimal 1-2Mb/sec); - 98% of the households and SME-s should have the access to broadband connections „with affordable price”. Main challenges today in Estonia: - High cost of computer hardware; - Poor availability of local services on Internet; - Lack of skills of computer and Internet use; - Insufficient availability of broadband access all over Estonia; - High cost of broadband access.