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Press release

Billag takes over T-Systems' Card Services unit

19 December 2003

Billag, a Swisscom subsidiary currently specialising in the collection of radio and television licence fees, is pursuing a growth strategy. With its takeover of the Card Services unit of T-Systems, Billag is establishing a new pillar of business and is set to assume a leading position in Switzerland as a provider of third party billing services (billing process outsourcing).

Fribourg-based Billag Ltd is known throughout Switzerland for its collection of radio and television licence fees. The company sends out some 12 million invoices a year to virtually all households in Switzerland, with a collection volume of approximately CHF 1.2 billion. With a workforce of 175, Billag Ltd is a fully-owned subsidiary of Swisscom Ltd.

On 19 December 2003, Billag Ltd took over from T-Systems Schweiz AG a 100% stake in T-Systems Card Services AG. The takeover price was undisclosed by tacit agreement. Based in Brüttisellen and with a workforce of 170, T-Systems Card Services is market leader in the field of customer fidelity and loyalty concepts based on customer cards with bonus, payment and credit functions. The company is responsible for the fiduciary management of its clients' customer data and debtor accounts, with an invoiced credit card turnover of CHF 2 billion.

The customer segments of Billag and T-Systems Card Services complement each other ideally. The takeover is set to move Billag Ltd into a leading position in the Swiss market for billing process outsourcing.

As things stand at present, the takeover will not affect either company's headcount. T-Systems Card Services jobs will continue to be based in Brüttisellen, while Billag's head office will remain in Fribourg. Following the takeover of T-Systems Card Services, Billag will have a workforce of around 350.

Berne, 19 December 2003


Swisscom AG
Media Relations
3050 Bern