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Press release

Costs of basic service provision not covered

31 October 2001

The core element of basic telecoms service provision in Switzerland is the telephone line, which allows countrywide access to phone, fax and the Internet. In accordance with the federal council´s decision, basic service provision will be extended to include digital access (ISDN), with a new upper limit of CHF 40 per month (excl. VAT). Swisscom considers additional regulation of services like ISDN that are already available countrywide as unnecessary and expresses its regret at the government´s decision.


High deficit will remain to the detriment of the Swiss economy

Swisscom has long pointed out that the CHF 25.25 (incl. VAT) rental fee for conventional (analog) lines is insufficient to cover costs. The decision to maintain the upper price limit for line rentals from 1 January 2003 at the current level will not eliminate the high cost deficit in basic service provision. The price regulation, which sets the price clearly below economic costs, will hamper future investments and hence have a negative impact on the Swiss economy.
Swisscom will be able to calculate the exact size of the deficit when the detailed tender documents for basic service provision from 2003 are available. The calculation of the service provision deficit is linked to the calculation of the interconnection charges and is based on economic considerations.

Berne, 31 October 2001


Swisscom AG
Media Relations
3050 Bern