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Press release

No revision of the Telecommunications Act - high investment level indicates an intact regulatory environment

Berne, 17 September 2010

The Federal Council today published its report on the Swiss telecoms market, including an analysis of the possible need for legislative action. Swisscom shares the opinion of the Federal Council that there is no need at present for a revision of the Telecommunications Act and that that any such revision would provoke legal uncertainty and jeopardise investments.

Switzerland is well-served with telecommunications services. This is the conclusion reached by the Federal Council in its analysis of the Swiss telecommunications market. The analysis also finds that current investment levels in fibre-optic cabling are encouraging.

High investment in telecoms networks is evidence of an intact regulatory environment

Switzerland has a high-quality infrastructure by international standards. Thanks to intense competition in the network area and a commensurate regulatory framework, Switzerland's biggest telecoms providers, with annual investments of around CHF 2 billion, are key contributors to the high locational advantages offered by Switzerland today. Foreign investors are also keen to continue and in some cases step up their investments in an attractive market environment. A study conducted by the OECD showed that telecoms investment per capita in Switzerland is among the highest worldwide. According to the French research institute iDate, Switzerland's broadband penetration (at least VDSL standard) is the highest in the world at 78%.

Falling prices set to continue - Mobile termination fees at EU level

In telecommunications, the price trend is running counter to that prevailing in most other sectors: the last few years have seen dramatic price falls, with Swisscom customers benefiting to the tune of several hundred million francs. On 9 September 2010, the three Swiss mobile phone operators announced that they were reducing mobile termination fees to the EU level. This joint reduction shows that current regulations have proven effective with the primacy of negotiation.

The new Telecommunications Act has achieved its principal goals and generates competition

The Telecommunications Act that came into force in 2007 has ensured that the defined market and coverage goals have been reached: in no other country has the unbundling of the last mile, which lies at the heart of the current Telecommunications Act, progressed as fast as in Switzerland. The present Telecommunications Act has brought about the desired level of network competition while also generating investment and attracting new market players (e.g. utilities). Swisscom is therefore of the same opinion as the Federal Council that there is no need for a revision of the Telecommunications Act after only three years.


Swisscom AG
Media Relations
3050 Bern