Home | Countries | Iceland

Iceland

Iceland ranks among the top countries in Europe for digital public services and infrastructure. According to the European Commission’s eGovernment Benchmark 2022, Iceland placed 4th out of 35 European countries assessed, following Malta, Estonia, and Luxembourg. The report found that 88% of government services in Iceland can be completed fully online, up from 81% the previous year. This indicates a high level of digitalization in Iceland’s public sector. Iceland’s strong performance is attributed to the government’s emphasis on digital transformation and making digital services the primary means of communication between the government and citizens. The country has invested heavily in digital infrastructure, including the creation of a national digital ID system used by over 90% of adults to access public services.

Internet governance

Internet governance in Iceland encompasses the management and development of Internet resources, policies, and regulations within the country, ensuring the Internet remains open, secure, and reliable.

The Ministry of Transport and Local Government is tasked with developing and implementing national strategies related to information and communication technologies (ICT). It works on policies that drive digital transformation, improve broadband infrastructure, and enhance public access to digital services. The ministry’s initiatives are designed to promote digital inclusion, economic development, and the overall modernization of public services.

The Icelandic Post and Telecom Administration (PTA) serves as the primary regulatory body overseeing electronic communications and postal services in Iceland. It is responsible for implementing and enforcing laws and regulations related to Internet governance, including managing the radio spectrum, assigning domain names, and ensuring competition in the telecommunications market. The Internet Society of Iceland (ISNIC), a non-profit organisation, is responsible for the registration and management of the.is country code top-level domain (ccTLD). ISNIC ensures the stability and security of the .is domain, promoting its use and maintaining policies related to domain name registration. The Ministry of Transport and Local Government oversees the policy-making aspect of internet governance in Iceland, developing and implementing national strategies related to information and communication technologies (ICT).

Iceland’s Internet governance framework is underpinned by several key policies and regulations. The Electronic Communications Act regulates electronic communications networks and services, ensuring that they are provided efficiently and competitively. This act includes rules on market access, user rights, and obligations for service providers.

Data protection and privacy laws in Iceland are aligned with the General Data Protection Regulation (GDPR) of the European Union. The Act on the Protection of Privacy as regards the Processing of Personal Data ensures that personal data is processed lawfully and transparently, granting individuals the right to access their data, request corrections, and demand the deletion of their personal information.

Digital strategies

Iceland’s digital strategies are aimed at fostering innovation, improving public services, and ensuring that all citizens have access to the benefits of digital technologies. Central to these efforts is the Digital Iceland initiative seeks to transform public services, enhance digital literacy, and promote digital inclusion. This initiative is a cornerstone of Iceland’s broader digital strategy, which also includes robust measures for cybersecurity, digital infrastructure improvement, and fostering innovation in the economy.

Digital Iceland Initiative

The Digital Iceland initiative represents a significant effort to digitize public services, making them more accessible, efficient, and user-friendly. The initiative is led by the Ministry of Transport and Local Government, focusing on several key areas:

E-Government Services: The development of comprehensive online portals is a major component of Digital Iceland. These portals aim to simplify access to various government services such as tax filings, permit applications, and public records, thereby reducing bureaucracy and improving service delivery. Secure digital identity systems have been established to allow citizens to authenticate themselves online, ensuring secure access to these e-government services. An interoperability framework is being developed to enable different government systems to communicate and share data efficiently, reducing redundancy and improving coordination.

Digital Literacy and Skills Development: Enhancing digital literacy among Icelandic citizens is crucial. The government collaborates with educational institutions to integrate digital literacy into school curriculums, starting from primary education to higher education. Public workshops and training sessions are also organized to help citizens, particularly older adults and those in rural areas, improve their digital skills. These programs cover a wide range of topics, including internet safety, online banking, and the use of digital government services.

Infrastructure Improvement: Significant investments are being made to enhance the country’s digital infrastructure. This includes expanding high-speed broadband access across Iceland, particularly in rural and remote areas, through subsidies and incentives for telecom companies. The deployment of 5G networks is also underway, which will further improve connectivity and support the next generation of digital services, including the internet of things (IoT) and smart city applications.

Inclusive Digital Services: The initiative emphasizes the need for digital services to be accessible to all citizens, including people with disabilities and those with limited digital skills. Services are designed with accessibility in mind, following international standards to ensure usability by people with various disabilities. Support services, such as helplines and guidance on navigating online platforms, are available to assist citizens in using digital services.

Nordic-Baltic Cooperation on Digitalisation

The Nordic-Baltic region, comprising Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway, and Sweden, collaborates on digitalisation to leverage their collective strengths, share best practices, and foster a competitive and sustainable digital economy.

Key Areas of Cooperation

1. Digital Single Market: The Nordic-Baltic countries are committed to the European Union’s Digital Single Market strategy, which aims to ensure that the EU’s digital economy can thrive without barriers across member states. By aligning their policies and regulations, these countries strive to create a seamless digital environment that encourages cross-border e-commerce, digital services, and innovation.

2. Cross-border Digital Services: One of the primary objectives of the cooperation is to develop and enhance cross-border digital services. This includes the interoperability of e-government services, where citizens and businesses can access public services in other Nordic-Baltic countries as easily as in their own. For instance, the use of digital signatures and electronic identification (eID) across borders facilitates smoother transactions and interactions.

3. Cybersecurity: With the increasing threat of cyber-attacks, cybersecurity has become a crucial area of cooperation. The Nordic-Baltic countries work together to share information on cyber threats, develop joint response strategies, and conduct joint cybersecurity exercises. This collaboration helps enhance the resilience and security of their digital infrastructures.

4. Digital Innovation and Startups: The region is known for its vibrant startup ecosystem and innovation culture. By fostering a collaborative environment, the Nordic-Baltic countries support the growth of digital startups and innovation hubs. Initiatives like the Nordic Innovation House, which provides support to startups looking to expand into the US market, exemplify this cooperation.

5. Digital Skills and Education: Enhancing digital skills and education is a key focus area. The countries collaborate on educational programs and initiatives that aim to improve digital literacy among their populations. This includes sharing best practices in integrating digital skills into school curriculums and adult education programs.

Notable Initiatives

Nordic Council of Ministers for Digitalisation (MR-Digital): Established in 2017, the MR-Digital is a collaborative platform for ministers responsible for digitalisation in the Nordic countries. It aims to strengthen the region’s position as a global leader in digitalisation through coordinated efforts and shared initiatives. The council focuses on areas such as digital public services, data economy, and the digitalisation of industries.

eIDAS Regulation and Digital Identity Cooperation: The Nordic-Baltic region has been proactive in implementing the eIDAS Regulation, which facilitates secure and seamless electronic transactions across EU member states. Cooperation on digital identity and eID systems ensures that citizens and businesses can use their national eIDs to access services in other countries, promoting cross-border mobility and economic activity.

5G and Digital Infrastructure: The deployment of 5G networks is a significant area of focus. The Nordic-Baltic countries are working together to accelerate the rollout of 5G infrastructure, which is essential for the development of next-generation digital services, including the Internet of Things (IoT), smart cities, and autonomous vehicles. This cooperation includes sharing best practices, harmonizing spectrum policies, and conducting joint research projects.

Green and Digital Transition: The Nordic-Baltic region is committed to leading the green and digital transition. The countries collaborate on initiatives that leverage digital technologies to support sustainability goals. This includes projects related to smart grids, energy-efficient data centers, and the use of digital tools to monitor and reduce environmental impact.

Cybersecurity

National Cybersecurity Strategy: Iceland’s approach to cybersecurity is underpinned by its National Cybersecurity Strategy, which aims to protect national security, critical infrastructure, and sensitive data. The strategy emphasizes the need for robust defence mechanisms, awareness campaigns, and international cooperation. It aligns with Iceland’s broader goals of maintaining national sovereignty and ensuring public trust in digital services.

Key Organizations and Stakeholders: Several organizations play pivotal roles in Iceland’s cybersecurity landscape:

Legislative Framework: Iceland has implemented comprehensive cybersecurity legislation to safeguard its digital environment. Key elements include:

  • Data Protection Act: Ensures the privacy and protection of personal data, in compliance with the EU’s General Data Protection Regulation (GDPR).
  • Cybercrime Act: Defines and penalizes cybercrimes, enhancing the legal framework to address emerging threats.

Critical Infrastructure Protection: Protecting critical infrastructure is a top priority for Iceland. The government collaborates with utility providers, financial institutions, and telecommunications companies to ensure resilience against cyberattacks. Regular risk assessments, security audits, and incident response exercises are conducted to fortify these sectors.

Public Awareness and Education: Increasing public awareness and education about cybersecurity is crucial. Initiatives include:

  • Cybersecurity Awareness Campaigns: Aimed at educating citizens and businesses about safe online practices.
  • Educational Programs: Integration of cybersecurity topics into school curriculums and offering specialized training for IT professionals.

International Cooperation: Iceland actively participates in international cybersecurity efforts. This includes collaboration with the European Union Agency for Cybersecurity (ENISA), the Nordic Council, and other global organizations to share information, best practices, and jointly address cyber threats.

Research and Development: Investment in research and development is vital for staying ahead of cyber threats. Iceland supports cybersecurity innovation through funding research projects and fostering partnerships between academia and industry.

AI strategies and policies

Artificial intelligence (AI) is a cornerstone of Iceland’s digital transformation. The government has laid out a comprehensive National AI Strategy, focusing on integrating AI into various sectors, promoting innovation, and ensuring ethical use of AI technologies. The strategy aims to leverage AI to enhance public services, drive economic growth, and improve the quality of life for its citizens.

Key Areas of AI Application:

  • Healthcare: AI is revolutionizing Iceland’s healthcare sector by improving diagnostics, personalized treatment plans, and patient care. AI-powered tools are being used for early detection of diseases, analyzing medical data, and enhancing telemedicine services, especially in remote areas.
  • Energy Sector: Iceland, known for its renewable energy resources, uses AI to optimize energy production and distribution. AI algorithms help in predicting energy demand, improving the efficiency of geothermal and hydroelectric plants, and managing smart grids.
  • Fisheries and Marine Sector: AI is playing a crucial role in sustainable fishing practices. AI technologies are used to monitor fish populations, optimize fishing routes, and ensure compliance with environmental regulations, contributing to the sustainability of one of Iceland’s key industries.
  • Tourism: The tourism industry benefits from AI through personalized travel experiences, intelligent chatbots for customer service, and data analytics to predict tourist trends and preferences. AI helps enhance the overall tourist experience while managing the environmental impact of tourism.

Research and Development: Iceland is investing heavily in AI research and development. Universities and research institutions collaborate with industry partners to advance AI technologies. Key research areas include natural language processing, machine learning, computer vision, and AI ethics.

The University of Iceland is at the forefront of AI research. It offers specialized programs in computer science and AI, and its research centres focus on various aspects of AI, including machine learning, natural language processing (NLP), and computer vision. The university collaborates with international institutions to stay abreast of global advancements and integrate them into local research efforts.

Reykjavik University is known for its strong emphasis on technology and innovation, and it conducts cutting-edge research in AI. The university’s AI Lab is a hub for developing advanced algorithms, exploring AI ethics, and applying AI to real-world problems. Collaborative projects with industry partners enable the practical application of research findings.

Education and Skill Development: Recognizing the importance of a skilled workforce, Iceland has integrated AI education into its academic curriculum. Universities offer specialized courses and degrees in AI and related fields. Additionally, there are numerous initiatives to upskill the current workforce through training programs and workshops.

International Collaboration: Iceland actively collaborates with international organizations and participates in global AI initiatives. This includes partnerships with the European Union, the Nordic Council, and other international bodies to share knowledge, set standards, and address common challenges in AI development.

dig.watch

General profile

Official name: Republic of Iceland

Source: Wikipedia

National internet domain: IS

Source: Wikipedia

Area: km2

Source: Wikipedia

Capital:

Source: Wikipedia

Population:

Source: Wikipedia

Population growth: 1.58

Annual population growth rate for year t is the exponential rate of growth of midyear population from year t-1 to t, expressed as a percentage. Population is based on the de facto definition of population, which counts all residents regardless of legal status or citizenship.
Source: World Bank Open Data

Life expectancy at birth: 83.07

Total years (2020year) Source: databank.worldbank.org

Rule of law estimate: 1.75

Rule of Law captures perceptions of the extent to which agents have confidence in and abide by the rules of society, and in particular the quality of contract enforcement, property rights, the police, and the courts, as well as the likelihood of crime and violence. Estimate gives the country's score ranging from approximately -2.5 to 2.5 (Estimate 2021)
Source: databank.worldbank.org

Regulatory quality estimate: 1.45

Regulatory Quality captures perceptions of the ability of the government to formulate and implement sound policies and regulations that permit and promote private sector development. Estimate gives the country's score ranging from approximately -2.5 to 2.5 (Estimate 2021)
Source: databank.worldbank.org

Political stability: 1.37

Political Stability and Absence of Violence / Terrorism: measures perceptions of the likelihood that the government will be destabilized or overthrown by unconstitutional or violent means, including politically-motivated violence and terrorism. Estimate gives the country's score ranging from approximately -2.5 to 2.5 (Estimate 2021)
Source: databank.worldbank.org

Economic info

Currency: No data

Source: Wikipedia

Unemployment: 5.4

Unemployment, total (% of total labor force) Source: databank.worldbank.org

GDP (current US$): 25,458,933,915.87

Source: databank.worldbank.org

GDP growth (annual %): 3.7

Source: databank.worldbank.org

GDP per capita (current US$): 68,383.77

Source: databank.worldbank.org

Inflation, consumer prices (annual %): 4.44

Source: databank.worldbank.org

GNI (current US$): 24,697,606,585.42

The Gross National Income, GNI, formerly referred to as gross national product (GNP), measures the total domestic and foreign value added claimed by residents, at a given period in time, usually a year, expressed in current US dollars using the World Bank Atlas method. GNI comprises GDP plus net receipts of primary income (compensation of employees and property income) from non-resident sources. Source: databank.worldbank.org

Ease of doing business score: 78.96

The ease of doing business score benchmarked economies concerning their proximity to the best performance in each area measured by Doing Business for the year 2019. Estimate gives the country's score ranging from0 = lowest performance to 100 = best performance Source: databank.worldbank.org
dig.watch

Digital profile

Internet and social media penetration:

Individuals using the internet, total (%): 99.7 (2021)

Source: www.itu.int

Social media statistics: 331.3 thousand

Estimate for 2022
Source: datareportal.com

Male internet users: 99.7 (2021)

Male internet users as a % of total male population
Source: www.itu.int

Facebook users: 246.9 thousand

Estimate for 2022
Source: datareportal.com

Female internet users: 99.7 (2021)

Female Internet users as a % of total female population
Source: www.itu.int

Instagram users: 213.2 thousand

Estimate for 2022
Source: datareportal.com

Households with internet access at home (%): 98.4 (2021)

Source: www.itu.int

Linkedin users: 250.0 thousand

Estimate for 2022
Source: datareportal.com

Fixed broadband subscriptions: 38.6 (2021)

Total fixed broadband subscriptions (per 100 people) refers to fixed subscriptions to high-speed access to the public internet (a TCP/IP connection), at downstream speeds equal to, or greater than, 256 kbit/s.
Source: www.itu.int

Twitter users: 94.4 thousand

Estimate for 2022
Source: datareportal.com

Mobile infrastructure and access:

Mobile ownership: 90.44

Mobile phone ownership as a % of total population (Estimate for 2021)
Source: https://www.mobileconnectivityindex.com/

Mobile Infrastructure: 90.56

Mobile Infrastructure index: High-performance mobile internet coverage availability. It includes parameters such as network coverage, performance, quality of supporting infrastructure and amount of spectrum assigned to mobile network operators (Estimate for 2021)
Source: https://www.mobileconnectivityindex.com/

Male mobile ownership: No data

Male mobile phone ownership as a % of total male population
Source: www.itu.int

Mobile Affordability: 78.55

Mobile Affordability index : The availability of mobile services and devices at price points that reflect the level of income across a national population. It includes parameters such as mobile tariffs, headset prices, taxation and inequality (Estimate for 2021)
Source: https://www.mobileconnectivityindex.com/

Female mobile ownership: No data

Female mobile phone ownership as a % of total female population
Source: www.itu.int

Cybersecurity Index: 79.81

Cybersecurity Index (Estimate for 2021): ITU cybersecurity value
Source: www.itu.int

Network performance: 96.97

Network performance index: Quality of mobile services measured by download speed, upload speed and latencies (Estimate for 2021)
Source: https://www.mobileconnectivityindex.com/

Mobile download speeds: 100.0

Mobile download speeds: Average download speed for mobile users (originally in Mbit/s) (Estimate for 2021)
Source: Ookla's Speedtest Intelligence

Mobile uploads speeds: 98.25

Mobile uploads speeds: average uploads speed for mobile users (originally in Mbit/s) (Estimate for 2021)
Source: Ookla's Speedtest Intelligence

Mobile Latencies: 92.65

Mobile Latencies: Average latency for mobile users (originally in milliseconds) (Estimate for 2021)
Source: Ookla's Speedtest Intelligence

Speedtest-Broadband: No data

Speedtest-Broadband: The value is expressed in Mbps (Estimate for 2021)
Source: https://www.speedtest.net/global-index

Network coverage: 92.89

Network coverage (% of total population) (Estimate for 2021)
Source: https://www.mobileconnectivityindex.com/

2G Coverage: 99.98

Coverage % of population (Estimate for 2021)
Source: www.itu.int

3G Coverage: 99.0

Coverage % of population (Estimate for 2021)
Source: https://www.mobileconnectivityindex.com/

4G Coverage: 99.9

Coverage % of population (Estimate for 2021)
Source: https://www.mobileconnectivityindex.com/

5G Coverage: 33.34

Coverage % of population (Estimate for 2021)
Source: https://www.mobileconnectivityindex.com/

Operating system and browser market share estimate for 2022:

Operating system market share (%):

Desktop, Tablet & Console Operating System Market Share: Estimate for 2022
Source: https://gs.statcounter.com/

Browser market share (%):

Browser Market Share Worldwide: Estimate for 2022
Source: https://gs.statcounter.com/

Android: 19.65

Chrome: 54.57

Win10: 27.7

Safari: 29.03

iOS: 21.57

Edge: 4.81

OS X: 17.86

Firefox: 4.14

Win11: 6.9

Samsung Internet: 3.5


The UN E-Government Survey 2022:

The UN E-Government Survey is the assessment of the digital government landscape across all UN member states. The E-Government Survey is informed by over two decades of longitudinal research, with a ranking of countries based on the UN E-Government Development Index (EGDI), a combination of primary data (collected and owned by the UN Department of Economic and Social Affairs) and secondary data from other UN agencies.
Source:https://publicadministration.un.org/egovkb/en-us/Reports/UN-E-Government-Survey-2022

E-Government Rank: 5

Nations E-Government Development Index (EGDI), a combination of primary data (collected and owned by the United Nations Department of Economic and Social Affairs) and secondary data from other UN agencies. Estimate gives the country's rank.
Source: https://publicadministration.un.org/egovkb/en-us/data-center

E-Government Index: 0.94

The EGDI is a composite measure of three important dimensions of e-government, namely: provision of online services, telecommunication connectivity and human capacity. Estimate gives the country's score ranging from approximately 0 to 1.
Source: https://publicadministration.un.org/egovkb/en-us/data-center

E-Participation Index: 0.8

The E-Participation Index (EPI) is derived as a supplementary index to the United Nations E-Government Survey. Estimate gives the country's score ranging from approximately 0 to 1.
Source: https://publicadministration.un.org/egovkb/en-us/data-center

Online Service Index: 0.89

The online services index was developed by the UN to evaluate the scope and quality of government online services. Estimate gives the country's score ranging from approximately 0 to 1.
Source: https://publicadministration.un.org/egovkb/en-us/data-cente

Human Capital Index: 0.97

The Human Capital Index (HCI) quantiï¬_x0081_es the contribution of health and education to the productivity of the next generation of workers. Estimate gives the country's score ranging from approximately 0 to 1.
Source: https://publicadministration.un.org/egovkb/en-us/data-center

Telecommunication Infrastructure Index: 0.97

Telecommunication Infrastructure Index- Telecommunication Infrastructure Index (TII) Composite Indicator that measures the countries' Telecommunication infrastructure readiness to adopt the opportunities offered by Information and Communication Technology as to enhance their competitiveness. Estimate gives the country's score ranging from approximately 0 to 1.
Source: https://publicadministration.un.org/egovkb/en-us/data-center

ICT information:

ICT skills

Information economy indicators

Individuals with basic ICT skills (%): 65 (2021)

Source: www.itu.int

Share of ICT goods, % of total exports (value) 0.32 (2021)

Source: https://unctadstat.unctad.org/

Individuals with standard ICT skills (%): 62.7 (2021)

Source: www.itu.int

Share of ICT goods, % of total import (value): 7.71 (2021)

Source: https://unctadstat.unctad.org/

Individuals with advanced ICT skills (%): 9.9 (2021)

Source: www.itu.int

Most visited website: No data

The survey conducted in 2022 excluded global dominant sites (e.g., YouTube, Facebook, and Google) and search engines (e.g., Yahoo, Baidu, DuckDuckGo, Naver, and Yandex) to level the playing field and discount middle-man visits. Likewise, it did not include adult, betting, illegal streaming/downloading services, and malicious websites.
Source: https://www.hostinger.com/tutorials/the-most-visited-website-in-every-country

dig.watch

DiploAI