2009 Switzerland - Telecoms, IP Networks, Digital Media and Forecasts

BuddeComm’s annual publication, Switzerland - Telecoms, IP Networks, Digital Media and Forecasts, provides a comprehensive overview of the trends and developments in the telecommunications and digital media markets in Switzerland.

The Swiss telecom market showed moderate growth until 2008, when the economic downturn, which halved the countries GDP within a year, began to take hold. GDP was expected to fall by 3% in 2009. Although this will be less severe than in other developed economies, the telecom sector will be affected as consumers reign in the discretionary spending. Total telecom revenue growth was only about 1% in 2008 and may fall by up to 3% in 2009. Revenue from fixed-line services continues to fall by about 4% year-on-year, offset by growth in the broadband and mobile sectors.

Switzerland has one of the highest Internet penetration rates in Europe, supported by excellent cross-platform infrastructure with near-comprehensive DSL availability and a well developed cable TV market, a legacy of network build in the late 1980s. The fibre sector has become increasingly prominent, though thus far has been restricted to the main cities. The mobile phone sector has been stimulated by the introduction of a greater number of MVNOs, resulting in significant falls in voice and data prices although overall services remain among the most expensive in Europe.

Switzerland – Key telecom parameters – 2008 - 2009

(Source: BuddeComm)

Key highlights:

·         Swisscom leads the fixed network voice market but competitors during the next few years will continue to capture considerable market share in all sectors, largely due to their substantially cheaper calls rates. The number of Swisscom’s PSTN and ISDN access lines has consequently fallen year-on-year, placing further pressure on the company’s future revenue.

·         Until 2006 competitor access to Swisscom’s network was ineffectively regulated, and access prices remain among the highest in Europe. By the beginning of 2009 there were only about 31,000 unbundled lines in Switzerland, which has considerably affected the benefits of competition. By taking a firmer line on access, the regulator should substantially improve the conditions for alternative operators in 2010.

·         The regulator’s 2009 spectrum review included releasing digital dividend spectrum in the 790MHz to 862MHz range for mobile services from 2015. The spectrum will significantly expand mobile broadband to rural areas that cannot be served economically by fixed-line networks.

·         Cablecom’s nationwide network was among the first in Europe to be upgraded to deliver 100Mb/s, With 1.3 million customers to be connected by the end of 2010, the network will go far to meeting growing consumer demand for high-bandwidth applications.

·         Digital switchover in Switzerland has progressed well, with analogue services in the German speaking regions having ended by February 2008. The national digital transmitter network was completed at the end of 2008, making it possible to receive DVB-T signals throughout the country. With analogue TV transmissions to close progressively during 2010, sub-1GHz spectrum will be made available for mobile broadband and other uses ahead of many other European countries.

Data in this report is the latest available at the time of preparation and may not be for the current year.