Swisscom develops new markets in its business with corporate customers
Swisscom's revenue from corporate customers in the traditional fixed-line area has declined by some 20 per cent over the past four years. The reasons for the decline are fierce competition and the increasing proliferation of mobile telephony and data-based communication such as SMS, e-mails and Internet services. Only a few years ago, Swisscom primarily covered traditional telecoms business with telephony and later mobile data traffic.
The company now offers comprehensive corporate communication solutions such as Communications & Collaboration and datahousing. "Customer needs change constantly and call for an ongoing stream of new communication solutions," says Urs Schäppi, Head of Swisscom Corporate Business, adding that revenue generated by ICT business has been driven up continuously thanks to innovative products and services. Net revenue in the Corporate Business segment has grown to CHF 1,865 million despite the decline in telephony.
M2M is a strategically important market
Swisscom is focusing on an additional growth driver in the ICT market in 2012 in the form of machine-to-machine communication (M2M). Experts estimate worldwide potential of CHF 8.6 billion over the medium term, and anticipate an annual 22 per cent increase in revenue in Switzerland over the short term. There will soon be more machines communicating directly with each other than there are mobile phone customers. Swisscom estimates that over the long term more than 100 million machines will be connected with each other via the mobile network in Switzerland.
M2M - the Internet of things<
Machine-to-machine means communication involving at least one remotely operated device. These are not typical communication devices such as mobile phones, but things such as clocks. Communication takes place via the SIM card, and fully automated communication means that processes are simplified, costs reduced and resources used in a sustainable way.