Swisscom said its Capex dropped 2.8 percent to CHF 1.053 billion at the end of June 2022 despite focusing on the expansion of 5G network in Switzerland.
Swisscom had connected roughly 4.9 million or around 90 percent of homes and businesses to its ultra-fast broadband service (speeds in excess of 80 Mbps) at the end of June 2022. Over 4.1 million or around 76 percent of homes and businesses receive fast Internet connections with speeds of more than 200 Mbps.
Capital expenditure of Fastweb remained stable at EUR 299 million (–0.7 percent).
Swisscom Switzerland’s Capital expenditure was almost unchanged at CHF 755 million (+0.3 percent). Capital expenditure on the expansion of broadband and mobile networks decreased, while capital expenditure on other infrastructure increased.
Swisscom aims to expand the fibre-optic network to homes and offices (FTTH) to up to 60 percent coverage in Switzerland by 2025 using P2MP (point-to-multipoint) architecture. The Competition Commission questioned the network architecture and imposed precautionary measures in December 2020, which the Federal Administrative Court confirmed in 2021.
The coverage of Swisscom’s 4G / LTE network was over 99 percent. Swisscom provides 99 percent of the Swiss population with a basic version of 5G. Swisscom had 2,230 antennas in 985 locations with full 5G+.
Opensignal, the provider of the speed test app, said smartphone users in Switzerland receive a poorer signal strength when connecting to 5G networks than mobile customers in neighbouring Germany, France and Italy.
Swisscom expects revenue of CHF 11.1–11.2 billion, EBITDA of around CHF 4.4 billion and capital expenditure of around CHF 2.3 billion in 2022.
Swisscom CEO Christoph Aeschlimann said: “Swisscom’s operating income in a challenging environment is impressive. Following the flat rates, digital TV and customisable subscription, we have set a mark on the market with Swisscom blue and fully digitised the subscription.”
Swisscom Group revenue decreased by 1.6 percent to CHF 5,494 million due to competition and price pressures led to a further decline in revenue from telecoms services.