Participation in the knowledge-based society presumes access to the internet and ICT-based services. As a result of the early liberalization of the telecommunications market and intense competition, Estonia has a well-developed communications network: all central and local government agencies, public libraries as well as educational and health institutions have an internet connection, as do 90 percent of Estonian enterprises. Approximately 90 percent of the Estonian population lives in areas with immediate availability of broadband internet. This paper discusses modernization of the e-Government in Estonia which includes: large penetration on broadband internet in Estonia, developing environments for implementation of e-Government services, and developing e-solutions for very different public sector activities such as e-Notary, e-Procurement, and e-Invoicing.