"Estonia is surely the most tech-advanced country in Europe, they in fact call it E-stonia. Some facts: Population: 1.35M Internet usage: 56% Internet banking: 88% Mobile penetration: >100%. 1000+ Free Internet Access points. PKI penetration: >80%. Biggest national eID card roll-out in Europe. With your eID card you get an email address such as [email protected] and a certificate for digital signature. You can login in banks with E-id card given by the state. You pay taxes online as well. And you can vote in election. They are rolling out the Mobile-ID, i.e. your ID is your mobile. With an ID card, you also have an OpenID and the state is your OpenID provider." 
12.9.2007 Cafe Babel Dossier on Talinn & Estonia: After centuries of foreign rule, Estonians sang for revolution twenty years ago and found their freedom. The never-resting city emerges as a wireless boomtown – the 'Baltic tiger'. But some fall by the wayside
Nato Cyberwarfare Headquarters
So highly regarded is Estonia's online technology and security savvy that NATO's new cyber-warfare center will be based there.
excerpt from Estonia: Cyber Superpower
article BBC , may 15 2008 :
Seven Nato nations have backed a new cyber defence centre in Estonia, which last year blamed Russia for weeks of attacks on its internet structure.
excerpt from Estonian Cyber Defence Hub set up
Articles on Web War 1
" at 11 PM May 8 – midnight Moscow time -- Estonia saw Internet traffic spike over four million packets per second, a two hundred fold increase over normal levels for that time of night. Attackers went for bank sites, newspapers, foreign ministry sites, and government-connected sites. " link
Estonian Websites Under Attack (May 10 & 17, 2007)
Web sites throughout Estonia have been under attack for the past three weeks. Riots and protests broke out on April 27 when Estonia removed a Soviet war memorial statue in the capital city of Tallinn. Ethnic Russians protested the statue's removal. Russia is suspected of being behind the attacks, but no accusations have been made. The distributed denial-of-service (DDoS) attacks have hit across the board at government web sites as well as web sites of newspapers, banks and businesses. NATO has sent cyber terrorism experts to Tallinn to help the country improve its cyber defenses.
May 10th 2007 The Economist : A cyber-riot
May 17, 2007 The Guardian : Russia accused of unleashing cyberwar to disable Estonia
21.08.2007 Wired.Com : Hackers Take Down the Most Wired Country in Europe "The attacks were aimed at the essential electronic infrastructure of the Republic of Estonia," Aaviksoo tells me later. "All major commercial banks, telcos, media outlets, and name servers — the phone books of the Internet — felt the impact, and this affected the majority of the Estonian population. This was the first time that a botnet threatened the national security of an entire nation."
Welcome to Web War one.
RUSSIA VS. ESTONIA: 21st Century State vs. State Conflict
What does "guerrilla" war between interdependent states look like in the 21st Century? Very much like the war now going on between Estonia and Russia. Russia is using the removal of a statue commemorating Russian war dead from Tallinn (the capital of Estonia) as a pretext to launch an information/economic war against Estonia in order to destabilize the state (the likely real reason is that Estonia is blocking the construction of a Baltic pipeline to Germany).
Remember: Vulnerability to disruption accelerates with size while the capacity to disrupt (using these methods) is scale-free (based on self-replicating computer resources and thereby within the budget of any state, no matter how small).