Over recent weeks, Swisscom took part in the 5G spectrum auction. The frequency ranges purchased by Swisscom are needed to operate the new 5G network and to expand the capacity of the 4G network. The radiocommunication licence recently awarded by ComCom is valid for 15 years.
Against this backdrop, Swisscom considers the price to be a long-term investment in the future of the mobile market. The bid of CHF 196 million is viewed as exceptional and was not included in the capital investments of around CHF 2.3 billion projected for 2019. In all other respects, the financial outlook and the intended dividend of CHF 22 per share remain unchanged for 2019.
Swisscom will use the acquired frequencies to deploy the latest 5G technology to extend what all recognised tests have confirmed to be Switzerland's best mobile network and to expand the existing 4G network capacities. Urs Schaeppi, CEO Swisscom: “By building the 5G network, we are contributing to improving the competitiveness of Switzerland as a centre for business. We want to inspire people in the networked world, whether they are in the city or in the countryside. Swisscom plans to go live with 5G as soon as possible and initially plans to roll out 5G to 60 towns and communities by the end of 2019. The first 5G-enabled devices are expected to reach the Swiss market in the next few months and will allow customers to enjoy higher speeds, faster response times and better capacity.
Swisscom successfully acquired 46 percent of the frequencies purchased by all bidders for 5G and previous mobile communication generations. The specific spectrum ranges acquired are:
2x15 on 700 MHz
50 on 1400 MHz
120 on 3500 MHz
The available mobile frequencies were auctioned by the Federal Communications Commission (OFCOM) on behalf of the Federal Office of Communications. The auction took place from 29 January to 7 February 2019. Participating in the auction alongside Swisscom were mobile network operators Salt and Sunrise as well as Dense Air Ltd. Up for auction were frequency blocks in the following bands: 700 MHz, 1400 MHz, 2600 MHz and 3500 MHz. In all, the Federal Government received in the region of CHF 380 million for the auctioned frequency packages.
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