Swisscom updates on 5G network and broadband coverage

Swisscom CEO Urs Schaeppi has revealed how the telecom operator is progressing with the roll out of 5G network and broadband in Switzerland.
Swisscom CEO Urs Schaeppi on 5GSwisscom’s capital expenditure (Capex) including spectrum totalled CHF 1,833 million (+13.1 percent) at the end of September. Swisscom spent CHF 196 million on mobile frequencies for the 5G network in Switzerland during the spectrum auction in the first quarter.

But Swisscom’s 5G network roll out is well below the 5G coverage completed by Sunrise, its main rival, across Switzerland.

Swisscom, which launched standardised 5G networks on 17 April 2019, is expanding the 5G network in phases and plans to roll out 5G to 90 percent of the population by the end of the year.

“Swisscom is expanding the 5G mobile network further and making modern fibre-optic technologies available to an average of one new municipality per day,” Swisscom CEO Urs Schaeppi said.

Swisscom said its high-speed broadband network connects more than 70 percent of Swiss homes and offices with Internet speeds of more than 80 Mbps. In addition, Swisscom is offering Internet speeds of more than 200 Mbps to over 43 percent of all homes and offices.

Swisscom also said the switch to IP technology is is scheduled for completion by the end of 2019.

Swisscom covered 99 percent of the Swiss population with its 4G/LTE network at the end of September 2019. Over 96 percent of the Swiss population access Internet at speeds of up to 300 Mbps, over 72 percent at speeds of up to 500 Mbps and around 27 percent at 700 Mbps.

The use of mobile data services in Swisscom’s mobile network has increased 40-fold since the introduction of a flat rate seven years ago.

Swisscom had 2.67 million registered inOne customers. The inOne mobile launched in April has attracted around 890,000 customers. inOne accounts for 60 percent of all mobile phone subscriptions in the residential customer segment and for 65 percent of fixed-line broadband connections.

The number of fixed-line broadband connections dropped by 3,000 or 0.1 percent year-on-year to 2.03 million, an increase of 3,000 connections was reported in the third quarter of 2019. The number of TV connections rose by 11,000, which translates into a year-on-year rise of 30,000 or 2.0 percent to 1.54 million.

Swisscom lost 27,000 fixed-line phone connections in the third quarter of 2019 taking the total to 1.54 million.

Swisscom reported total revenue of CHF 8.456 billion (–2.7 percent). Swisscom generated revenue of CHF 6.367 billion (–3.3 percent) in its largely saturated Swiss core business due to drop in prices in various segments and the decrease in fixed-line telephony connections.

Swisscom said Marc Werner, head of Sales & Services, is leaving Swisscom to become CEO of another company.

Swisscom will merge the Sales & Services and Products & Marketing divisions with effect from 1 January 2020. Dirk Wierzbitzki, the current head of Products & Marketing division, will head the new Retail Customers division.