2011 Switzerland - Telecoms, IP Networks, Digital Media and Forecasts

Publication Overview

This report provides a comprehensive overview of trends and developments in the Swiss telecommunications market. The report analyses the mobile, internet, broadband, digital TV and converging media sectors. Subjects include:

  • Market and industry analyses, trends and developments;
  • Facts, figures and statistics;
  • Industry and regulatory issues;
  • Infrastructure;
  • Major players, revenues, subscribers, ARPU, MoU;
  • Internet, VoIP, IPTV;
  • Mobile voice and data markets;
  • Broadband (FttH, DSL, cable TV, wireless);
  • Convergence and digital media;
  • 3G subscriber and mobile ARPU forecasts to 2015;
  • Broadband market forecasts for selective years to 2020.

Key developments:

Regulator’s measures eliminate FttH network duplication; regulator increases minimum internet speed on Swisscom’s USO; Swisscom signs its twelfth FttH network construction sharing contract, plans for one million households to be connected to FttH by 2015; minimum broadband connection upgraded to 1Mb/s; Orange Switzerland sold to private equity firm; Swisscom launches M2M services; UPC Cablecom plans to launch as an MVNO; Sunrise launches Sunrise TV service; regulator reconsiders wholesale access prices; Swisscom takes €973 million write-down on Italian subsidiary Fastweb; regulator’s updated market report; operator data for Q3 2011; market developments to 2012.

Companies covered in this report include:

Swisscom, Sunrise, Cybernet, UPC Cablecom, Hospitality Services, Orange Switzerland, , Swisscom Mobile, Zirkumflex, Migros, Coop Mobile, Lycamobile, Abalon Telecom, Mobilezone Yallo, Lebara, The Phone House, United Mobile Liechtenstein, M-Budget Mobile,.

This report is essential reading for those needing high level strategic information and objective analysis on the telecom sector in Switzerland. It provides further information on:

  • Market liberalisation and regulatory issues;
  • The impact of the global economic crisis;
  • Telecoms operators – privatisation, acquisitions, new licences;
  • Mobile data market developments in coming years in light of spectrum auctions;
  • 3G developments, regulatory issues and technologies including HSPA and LTE;
  • Broadband migration to an FttH architecture;
  • Historical and current subscriber statistics and forecasts;
  • ARPU statistics and forecasts.

Researcher:- Henry Lancaster
Current publication date:- February 2012 (11th Edition)

Executive Summary

Switzerland’s cooperative fibre infrastructure showing dividends

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 telecom market was worth an estimated CHF18.1 billion in 2011, showing a slight increase year-on-year compared to a near 8% increase between 2006 and 2007. This reflected the continuing economic turmoil which has resulted in lower consumer spend on many discretionary telecom services. In addition, revenue has been hit by the continuing effects of falling prices resulting from competition and regulatory measures.

The major operators have maintained their investments in the sector, with the lion’s share being directed to upgrading mobile networks with technologies including HSPA and LTE, as also in fibre-based broadband infrastructure. Although liquidity issues coupled with lower operator revenue during the past two years have dented overall investment, which has fallen steadily since 2008, some rebound may be expected in 2012 as a result of Swisscom’s continuing efforts in its FttH network and operator interest in the forthcoming mobile spectrum auction.

Overall telecom revenue has been propped up by the broadband and mobile sectors. Mobile tariffs remain above the average EU prices, while local fixed-line calls are also comparatively high. In the mobile sector, Orange Switzerland in early 2012 was bought by the private equity firm Apex Partners for €1.6 billion. France Telecom sold the unit as part of a portfolio review that will see it focus on fast-growing emerging markets in the Middle East and Africa. The move followed the 2010 purchase of Sunrise by the private equity investment group CVC Capital Partners. This suggests significant faith in the health and viability of Switzerland’s telecom sector among key investment houses.

Switzerland retains one of the highest broadband 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 builds in the late 1980s. The fibre sector has become increasingly prominent, largely through the competitive pressure which the main cableco UPC has placed on Swisscom. As UPC has incrementally increased its broadband offerings to 100Mb/s Swisscom has been pressed to maintain investment in its VDSL and FttH infrastructure. The build-out of the latter has been greatly facilitated by a number of cooperative deals with municipal and regional utilities, themselves the fruit of regulatory efforts to ensure that costs are kept to a minimum through shared infrastructure. Assessments by the Competition Commission obliged Swisscom to renegotiate some of the partnerships. The regulator’s series of Round Tables in early 2012 established that operators had developed sufficient progress in network sharing agreements, the development of uniform technical standards, the laying of multiple fibres and the principles of access on equal terms and conditions. These developments will help propel Switzerland as a real leader in fibre deployment in coming years, while the country’s regulatory approach to fibre network access and wholesale charging will remain an example of an efficient and fair access regime.

Switzerland – Key telecom parameters – 2010; 2012

Sector

2010

2012 (e)

Subscribers to telecom services (million):

Fixed broadband

2.9

3.18

Fixed-line telephony

4.58

1.4

Mobile telephony

9.64

10.8

Penetration of telecom services:

Fixed broadband

37.7%

39.2%

Fixed-voice

65%

61%

Mobile telephony

122%

128%

(Source: BuddeComm)

Key highlights

  • DSL remains the dominant broadband access platform though FttX developments will see the DSL subscriber base diminish from 2012/2013 as consumers are migrated to fibre networks. The cable sector is likely to retain its market share given operator investments in DOCSIS3.0 technology.
  • The regulator’s planned auction of a wide range of spectrum in 2012 will provide greater certainty for operators planning their investment and network upgrade strategies. Including digital dividend spectrum in the sub-GHz band will greatly enhance the development of mobile broadband offerings based on LTE.
  • Swisscom planned to launch commercial LTE services by the end of 2012, following trials in late 2011 and a five-year contract with Ericsson to upgrade mobile-core and radio networks.


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

Table of Contents

  • 1. Key Statistics
  • 2. Telecommunications Market
    • 2.1 Overview of Switzerland’s telecom market
    • 2.2 Government ICT strategy
      • 2.2.1 eGovernment
      • 2.2.2 eEconomy
      • 2.2.3 eHealth
      • 2.2.4 Economic stimulus
  • 3. Regulatory Environment
    • 3.1 History
    • 3.2 Regulatory authorities
    • 3.3 Telecom sector liberalisation in Switzerland
    • 3.4 Privatisation of Swisscom
    • 3.5 Interconnect
    • 3.6 Leased lines
    • 3.7 Access
      • 3.7.1 Bitstream access
    • 3.8 Number portability
    • 3.9 Carrier PreSelection (CPS)
    • 3.10 Universal Service Obligation (USO)
  • 4. Fixed Network Operators in Switzerland
    • 4.1 Market overview
    • 4.2 Swisscom
      • 4.2.1 Company reorganisation
    • 4.3 Sunrise
    • 4.4 UPC
  • 5. Telecommunications Infrastructure
    • 5.1 National telecom network
  • 6. Broadband Market
    • 6.1 Overview
      • 6.1.1 Government strategy
      • 6.1.2 Universal Service Obligation (USO)
      • 6.1.3 Broadband statistics
    • 6.2 Cable modems
      • 6.2.1 UPC
    • 6.3 Asymmetrical Digital Subscriber Line (ADSL)
      • 6.3.1 Swisscom
      • 6.3.2 Sunrise
      • 6.3.3 Cybernet
      • 6.3.4 VDSL
      • 6.3.5 Naked DSL
    • 6.4 Fibre-to-the-Home (FttH) networks
    • 6.5 Broadband Powerline (BPL)
    • 6.6 Wireless broadband
      • 6.6.1 Wireless LANS (WLAN)
      • 6.6.2 Mobile broadband
      • 6.6.3 Satellite
  • 7. Digital Media
    • 7.1 Key general trends
    • 7.2 Business models
      • 7.2.1 Bundled services
    • 7.3 Regulatory issues
      • 7.3.1 VoIP
    • 7.4 Digital TV (DTV)
      • 7.4.1 Overview
      • 7.4.2 Broadband (IPTV)
      • 7.4.3 Cable TV
      • 7.4.4 Satellite
      • 7.4.5 Free-to-Air (FTA) TV
      • 7.4.6 Digital Terrestrial TV
      • 7.4.7 Interactive TV (iTV)
      • 7.4.8 Video-on-Demand (VoD)
      • 7.4.9 VoIP
  • 8. Mobile Communications
    • 8.1 Overview of Switzerland’s mobile market
      • 8.1.1 Mobile statistics
      • 8.1.2 Mobile market shares
    • 8.2 Regulatory issues
      • 8.2.1 Spectrum regulations and spectrum auctions
      • 8.2.2 Number portability
      • 8.2.3 Fixed-to-mobile call charges
      • 8.2.4 Roaming
    • 8.3 Mobile technologies
      • 8.3.1 Digital
      • 8.3.2 Third Generation (3G) mobile
    • 8.4 Major mobile operators
      • 8.4.1 Swisscom Mobile
      • 8.4.2 Sunrise
      • 8.4.3 Orange
      • 8.4.4 Failed merger of Orange – Sunrise
      • 8.4.5 Mobile Virtual Network Operators (MVNOs)
      • 8.4.6 Mobile Virtual Network Enablers (MVNEs)
    • 8.5 Mobile voice services
      • 8.5.1 Prepaid cards
    • 8.6 Mobile Messaging
      • 8.6.1 Short Message Service (SMS)
      • 8.6.2 Multimedia Messaging Service (MMS)
    • 8.7 Mobile data services
      • 8.7.1 General Packet Radio Service (GPRS)
      • 8.7.2 High-Speed Packet Access (HSPA)
      • 8.7.3 High-Speed Circuit Switched Data (HSCSD)
      • 8.7.4 Enhanced Data for GSM Evolution (EDGE)
      • 8.7.5 Long-term Evolution (LTE)
      • 8.7.6 Mobile TV
      • 8.7.7 M2M services
    • 8.8 Mobile applications
      • 8.8.1 Location-based services
      • 8.8.2 Mobile ticketing
  • 9. Forecasts
    • 9.1 Broadband subscribers – 2009 - 2012; 2020
      • 9.1.1 Scenario 1 – higher broadband subscriber growth
      • 9.1.2 Scenario 2 – lower broadband subscriber growth
    • 9.2 Mobile ARPU – 2009 - 2015
    • 9.3 UMTS subscribers – 2009 - 2015
    • 9.4 Notes on scenario forecasts
  • 10. Glossary of Abbreviations
  • Table 1 – Country statistics Switzerland – 2011 (e)
  • Table 2 – Telecom revenue and investment statistics – 2010
  • Table 3 – Telephone network statistics – 2011
  • Table 4 – Internet user statistics – 2011 (e)
  • Table 5 – Broadband statistics – 2011 (e)
  • Table 6 – Mobile statistics – 2011 (e)
  • Table 7 – National telecommunications authorities
  • Table 8 – Fixed telephony connections – 2000 - 2012
  • Table 9 – Telecom sector revenue, profit and investment – 2000 - 2012
  • Table 10 – Telecom revenue by sector – 1998 - 2012
  • Table 11 – Telecom investment by sector – 1998 - 2012
  • Table 12 – Interconnection revenue – 2000 - 2010
  • Table 13 – Unbundled lines – 2008 - 2011
  • Table 14 – CPS as proportion of total lines – 1999 - 2010
  • Table 15 – CPS lines – 2002 - 2009
  • Table 16 – Share of fixed-line connections by operator – 2007 - 2010
  • Table 17 – Fixed-line revenue – 2000 - 2012
  • Table 18 – Fixed-line voice traffic – 2000 - 2012
  • Table 19 – Swisscable telephony subscribers – 2003 - 2012
  • Table 20 – Swisscom Group net revenue, EBITDA and net income – 2004 - 2011
  • Table 21 – Swisscom (Switzerland) financial data by sector – 2007 - 2011
  • Table 22 – Swisscom subscribers by sector – 2008 - 2011
  • Table 23 – TDC Switzerland financial data – 2006 - 2010
  • Table 24 – TDC Switzerland revenue by type – 2006 - 2010
  • Table 25 – Sunrise revenue and annual change – 2009 - 2011
  • Table 26 – Sunrise subscribers by sector – 2005 - 2011
  • Table 27 – UPC financial data – 2005 - 2011
  • Table 28 – Fixed lines in service, teledensity and traffic in minutes – 1997; 1999 - 2011
  • Table 29 – ISDN subscribers – 1999 - 2010
  • Table 30 – Internet household penetration by region – 2004; 2008; 2010; 2012
  • Table 31 – Dial-up internet subscribers – 2000 - 2012
  • Table 32 – Internet users and penetration rate – 1996 - 2012
  • Table 33 – Total broadband subscribers by type – 2000 - 2012
  • Table 34 – Broadband penetration by technology – 2004 - 2011
  • Table 35 – Broadband market share by operator – 2007 - 2010
  • Table 36 – Broadband lines by capacity – 2008 - 2010
  • Table 37 – Cable broadband homes – 2002 - 2010
  • Table 38 – Cable broadband lines by capacity – 2008 - 2010
  • Table 39 – UPC broadband offers – 2012
  • Table 40 – UPC financial data – 2005 - 2011
  • Table 41 – UPC broadband and telephony subscribers – 2007 - 2011
  • Table 42 – DSL accesses by main provider – 2004 - 2009
  • Table 43 – DSL market share by main provider – 2004 - 2009
  • Table 44 – DSL broadband lines by capacity – 2008 - 2010
  • Table 45 – Swisscom ADSL subscribers – 2003 - 2011
  • Table 46 – Swisscom dial-up subscribers (historic) – 2003 - 2007
  • Table 47 – Sunrise broadband subscribers – 2005 - 2011
  • Table 48 – Fibre subscribers – 2003 - 2012
  • Table 49 – Fibre broadband lines by capacity – 2008 - 2010
  • Table 50 – Broadband powerline connections – 2001 - 2009
  • Table 51 – Mobile broadband subscribers; data transferred – 2008 - 2009
  • Table 52 – Broadband satellite connections – 2008 - 2009
  • Table 53 – Subscribers by bundled service – 2007 - 2009
  • Table 54 – VoIP subscribers – 2004 - 2012
  • Table 55 – Swisscom IPTV subscribers – 2006 - 2011
  • Table 56 – Cable TV subscribers and penetration rate – 2002 - 2012
  • Table 57 – Swisscable cable TV subscribers by type – 2003 - 2012
  • Table 58 – UPC operational data: home and subscriber statistics – 2007 - 2011
  • Table 59 – Satellite services revenue – 2000 - 2012
  • Table 60 – VoIP lines and traffic in minutes – 2004 - 2012
  • Table 61 – Mobile investment, UMTS and total – 1998 - 2011
  • Table 62 – Mobile operators, subscribers and annual change – Sept 2011
  • Table 63 – Mobile subscribers and penetration rate – 1995; 1997; 1999 - 2014
  • Table 64 – UMTS subscribers – 2005 - 2011
  • Table 65 – Mobile revenue – 2000 - 2012
  • Table 66 – Mobile voice traffic – 2000 - 2012
  • Table 67 – Share of subscribers by MNO – 2007 - 2010
  • Table 68 – Mobile numbers ported – 2000 - 2010
  • Table 69 – Mobile termination charges by operator – 2006; 2009 - 2011
  • Table 70 – European roaming charges – 2007 - 2012
  • Table 71 – Voice roaming charges by operator – 2011
  • Table 72 – Volume of roaming calls made, by destination – 2009 - 2010
  • Table 73 – 3G subscribers – 2005 - 2012
  • Table 74 – Swisscom Mobile blended ARPU – 2006 - 2011
  • Table 75 – Swisscom Mobile revenue – 2003 - 2010
  • Table 76 – Swisscom Mobile subscribers – 2006 - 2011
  • Table 77 – Sunrise subscribers – 2004 - 2011
  • Table 78 – TDC Sunrise revenue and annual change (DKK) – 2006 - 2010
  • Table 79 – Sunrise mobile revenue (CHF) – 2009 - 2011
  • Table 80 – Orange mobile subscribers – 2000 - 2011
  • Table 81 – Orange revenue, annual change – 2005 - 2011
  • Table 82 – Orange annualised ARPU – 2006 - 2011
  • Table 83 – Orange mobile data as percentage of revenue – 2003 - 2011
  • Table 84 – Prepaid subscribers and market share – 1998 - 2011
  • Table 85 – Swisscom Mobile contract and prepaid subscribers – 2006 - 2011
  • Table 86 – Swisscom Mobile prepaid share of subscribers – 1998 - 2011
  • Table 87 – Swisscom Mobile sent SMS and MMS – 2007 - 2011
  • Table 88 – SMS, PSMS traffic and annual change – 2002 - 2012
  • Table 89 – Average price of SMS – 2009 - 2010
  • Table 90 – MMS, premium MMS traffic and annual change – 2003 - 2012
  • Table 91 – Mobile internet traffic (historic) – 2003 - 2006
  • Table 92 – Mobile data volume, by destination – 2009 - 2010
  • Table 93 – Average price per MB sent – 2009 - 2010
  • Table 94 – Forecast fixed-line broadband subscribers – higher market growth scenario – 2009 - 2012; 2020
  • Table 95 – Forecast fixed-line broadband penetration – higher market growth scenario – 2009 - 2012; 2020
  • Table 96 – Forecast fixed-line broadband subscribers – lower market growth scenario – 2009 - 2012; 2020
  • Table 97 – Forecast fixed-line broadband penetration – lower market growth scenario – 2009 - 2012; 2020
  • Table 98 – Forecast mobile ARPU – 2009 - 2015
  • Table 99 – Forecast UMTS subscribers and penetration rate – 2009 - 2015
  • Chart 1 – Fixed telephony connections – 2000 – 2012
  • Chart 2 – Telecom sector revenue, profit and investment – 2000 – 2012
  • Chart 3 – Swisscom Group net revenue, EBITDA and net income – 2004 – 2011
  • Chart 4 – Swisscom (Switzerland) financial data by sector – 2007 – 2011
  • Chart 5 – Sunrise revenue and annual change – 2009 – 2011
  • Chart 6 – Sunrise subscribers by sector – 2005 – 2011
  • Chart 7 – UPC financial data – 2005 – 2011
  • Chart 8 – Internet users and penetration rate – 1996 – 2012
  • Chart 9 – Total broadband subscribers by type – 2000 – 2012
  • Chart 10 – UPC financial data – 2005 – 2011
  • Chart 11 – DSL market share by main provider – 2004 – 2009
  • Chart 12 – Swisscom ADSL subscribers – 2003 – 2011
  • Chart 13 – Fibre subscribers – 2003 – 2012
  • Chart 14 – Swisscom IPTV subscribers – 2006 – 2011
  • Chart 15 – Cable TV subscribers and penetration rate – 2002 – 2012
  • Chart 16 – VoIP lines and traffic in minutes – 2004 – 2012
  • Chart 17 – Orange mobile subscribers – 2000 – 2011
  • Chart 18 – Prepaid subscribers and market share – 1998 – 2011
  • Chart 19 – Swisscom Mobile contract and prepaid subscribers – 2006 – 2011
  • Exhibit 1 – Access and the local loop
  • Exhibit 2 – Overview of digital media convergence

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