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Press release

Swisscom welcomes the draft of the UVEK concerning the future provision of basic telecoms services

06 April 2001

The proposal of the UVEK to increase telephone line prices takes the principle of cost orientation into account. Swisscom has long pointed out that the upper price limit of CHF 25.25 is not sufficient to cover the cost of an analog line. Swisscom is also satisfied with the proposal to compute the uncovered costs in the basic service provision. Criteria such as efficient service provision, appropriate yield on capital, replacement costs and depreciation method are in line with an economic approach and depend also on the method used for calculating interconnection costs.

Points contained in the draft such as quality guidelines, consumer guidelines and directories still have to be examined in detail by Swisscom. Hence, the fixing of upper price limits for voice traffic, given the high level of competition, appears to be superfluous; in the last few years prices have dropped by up to 80%.

Swisscom will meet its basic service provision obligation without compensation for the uncovered costs until the end of 2002. As the leading full service provider Swisscom will seek also in the future to ensure nationwide provision with first-class telecoms services and will apply for the concession for basic service provision for 2003.

Berne, 6 April 2001


Swisscom AG
Media Relations
3050 Bern