The mobile frequency auction was a success for Swisscom. The company acquired spectrum for operation of the mobile network in all of the preferred frequency ranges. The wireless licences newly issued by ComCom will run until the end of 2028.
In light of this, Swisscom regards the price of around CHF 360 million as fair and as a necessary economic and financial investment in the long-term future of the mobile network. The costs can be financed within the envisaged framework and will not affect the company's dividend policy. The auction price is not part of the budgeted capital expenditure for 2012.
Thanks to the newly acquired frequencies, Swisscom can press ahead with expanding its much acclaimed mobile network (repeatedly ranked number one by the specialist journal Connect) so that it can meet customers' needs now and in the future.
Swisscom was therefore successful in acquiring 42 percent of the frequency bands available for mobile communication.
In principle, lower frequencies are more suitable for large-scale coverage, say in rural areas, while higher frequencies are better for deployment in urban areas.
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