Swisscom

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Swisscom AG
Aktiengesellschaft
Traded as SIX: SCMN
Industry Telecommunications
Founded 1 January 1998 (Bern, Switzerland)
Headquarters Worblaufen, Switzerland
Key people
 Urs Schaeppi (CEO), Hansueli Loosli (Chairman)
Products Fixedline & Mobile Telephony
Fixedline & Mobile Internet
Digital Television
IT Services & Networking Solutions
Revenue CHF 11.703 billion (2014)[1]
CHF 2.322 billion (2014)[1]
Profit CHF 1.706 billion (2014)[1]
Total assets CHF 20.932 billion (end 2014)[2]
Total equity CHF 4.457 billion (end 2014)[2]
Owner Swiss Government
Number of employees
 21,125 (FTE, end 2014)[1]
Website www.swisscom.ch

Swisscom AG is a major telecommunications provider in Switzerland.[3] Along with Swiss Post, it is a successor company to the former state-owned PTT (Post, Telegraph and Telephone).[4] Its headquarters are located at Worblaufen near Bern.[5] The Swiss Confederation owns 51.0 percent of Swisscom AG.[6] As of the end of 2014, Swisscom had around 21,000 employees and generated revenues of approximately CHF 12 billions.[7]

Swisscom was ranked 20th in the recent list of the Global 100 Most Sustainable Corporations in the World.[8]

History

The age of the telegraph and the first telephones (1852-1911)

The first telegraph service was started between St. Gallen and Zurich in 1852 and marked the start of telecommunications in Switzerland.[9] Only twenty years after the telephone had been invented by Alexander Graham Bell, it was now present in all Swiss cantons (1896).

The age of the telephone (1912-1965)

The original Telstar, the first telecommunications satellite to be launched into space.

The first semi-automatic telephone switchboard was set up in Zurich-Hottingen in 1917.[9] Switzerland had 500,000 telephone subscribers in 1948 and 1 million subscribers by 1959.[9] That year, the Swiss telephone network became the first fully automated network in the world. In 1962, Telstar – the first telecommunications satellite – was launched into space. At Expo 1964 in Lausanne, the first exchange to permit international direct dialing was unveiled.[9] In 1974, twelve years after Telstar, the Leuk satellite earth station was set up in the canton of Wallis.

The development of mobile phones (1982-1992)

In 1975, the first mobile telephone network was laid out. This service was called the "Nationales Autotelefonnetz (NATEL)" in German or "national car phone network" and allowed transportation vehicles to make and receive calls. A decade later, the first fibre-optic cable was laid between Berne and Neuchâtel.[9]

Swisscom in modern times (1998-present)

The former state-owned PTT (Post, Telegraph, Telephone, founded 1852) was privatized in stages from 1988 onwards [9] and became a public limited company with special legal status in October 1998.[1] The Swiss Confederation currently holds 51.0% of the share capital.[1] The Telecommunications Enterprise Act limits outside participation to 49.9% of the share capital.[10]

In its 5 April 2006 message, the Federal Council proposed to Parliament that Swisscom should be completely privatized and that the Swiss Confederation should sell its shares in stages. On 10 May 2006, the National Council declined to support the proposal. On 20 May 2006 the Advisory Committee of the Council of States advised the Council of States to endorse the proposal – but only so that it could be referred back to the Federal Council for revision.

Swisscom announced its new visual identity on 14 December 2007.[11] The previous sub-brands of Swisscom Fixnet, Swisscom Mobile and Swisscom Solutions ceased to exist on 1 January 2008.[12]

On 23 July 2013 the CEO of Swisscom, Carsten Schloter was found dead from an apparent suicide and Urs Schaeppi was appointed interim CEO.[13] Since November 2013, Schaeppi has been the CEO of Swisscom.[14]

Organization

Swisscom Switzerland

Bluewin tower in Zürich

Swisscom (Switzerland) Ltd underwent a reorganization on 1 January 2008. The subsidiary companies Fixnet, Mobile and Solutions were dissolved and were eventually replaced by Residential Customers, Small and Medium-Sized Enterprises, Enterprise Customers, Wholesale as well as the IT, Network & Innovation segments.[15] The IT platforms together with the fixed-network and mobile communications infrastructures of the former Group companies were merged into the “IT, Network & Innovation” Division.

Currently, Swisscom operations are performed via three operating divisions:[16]

  1. Swisscom Switzerland,
  2. Fastweb, and
  3. Other operating segments.

Swisscom Switzerland

Swisscom Telecommunication Centre Herdern in Zurich by the architect Theo Hotz

This division is divided into the following segments: Residential Customers, Small and Medium-Sized Enterprises, Enterprise Customers, Wholesale and IT, Network & Innovation.[16]

Swisscom Network & IT builds, operates and maintains Swisscom's nationwide fixed-line and mobile communications infrastructure in Switzerland.[16] The division is also responsible for the corresponding IT platforms and is in charge of migrating the networks to an integrated IT and IP-based platform (All-IP).[16]

Fastweb

In the first half of 2007, Swisscom acquired a majority holding in the Italian company FASTWEB. During the offer period, which ran from 10 April to 15 May 2007, Swisscom acquired 80.7% of FASTWEB's share capital, which, when added to Swisscom's existing stake, meant that Swisscom owned 82.4% of FASTWEB shares by the cut-off date of 22 May. The total transaction amounted to EUR 4.2 billion or CHF 6.9 billion.[17] FASTWEB currently operates the second largest network in Italy.[16]

Swisscom participations

The participation portfolio covers the five business fields of "broadcasting" through Swisscom Broadcast, "network construction and maintenance" through Cablex, "Building management and business travel (incl. vehicle fleet management)" through Swisscom Real Estate Ltd, "Billing and collection" through Billag, Alphapay and Medipa Abrechnungskasse, and "Mobile Solutions" through Minick Holding and Sicap.[18]

Telecommunication Tower in St. Chrischona is the most important in north-east of Switzerland

International Carrier Services

On June 26, 2009, MTN Group and Belgacom, merged their International Carrier Services MTN ICS and Belgacom ICS (BICS). BICS will function as official international gateway for all international carrier services of Belgacom, Swisscom, and MTN Group.[19] These companies respectively hold 57.6%, 22.4% and 20.0% of the shares of the company.[19]

Internet of Things (IoT)

The Company started testing a network for the Internet of Things, or Low-Power Wide Area Network (LPWAN), in the Geneva and Zurich regions in April 2015.[20] The pilot project serves as an addition to the existing M2M mobile network solutions, and it has been estimated that by the year 2023 over 3 billion connections will be running via the IoT.[21]

Business areas and services

coComment

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Main article: coComment

In February 2006, Swisscom launched the Web 2.0 website coComment,[22] which allows users to track any discussion online.[23]

Swisscom Hospitality Services

Swisscom Hospitality Services (SHS) is a division of Swisscom AG that supports the hotel industry with network and communication solutions.[16]

SHS services Hyatt, Rezidor, IHG, Marriott, Hilton Worldwide, Accor, Mandarin Oriental,[24] and other large hotel groups across North America, Europe, the Middle East and Asia-Pacific.[25]

Founded in 2002 as Swisscom Eurospot, the company originally specialized in providing High-Speed Internet Access (HSIA) services to hotel guests in European 4- and 5-star hotels.[26] With the rising complexity of information and communication technology and increasing cost pressures affecting the hotel business, SHS expanded their range of applications including Voice over IP, Hotel TV, High-speed Internet and tablet-based room controls that are offered through a converged hotel network infrastructure.[26]

In 2012, the company introduced a Managed Network Services offering specifically for its hotel customers.[27]

In June 2015, Swisscom Hospitality Services became part of a new company, Hoist Group, following its acquisition by the Sweden-based HoistLocatel.[28] Hoist Group develops and supplies systems, products and services to independent hotels and hotel chains, hospitals and public venues in Europe and the Middle East.[29]

Cloud and data centers

In 2013, Swisscom announced its plan to build a cloud service based in Switzerland which would adhere to the strict privacy laws of Switzerland. The data would be stored within Switzerland's borders but would allow users global access. This would protect individuals and businesses from foreign authorities and less stringent foreign data privacy laws.[30] Swisscom's main focus is on Swiss-based clients, especially banking clients, but it also targets foreign-based clients who are interested in seeking data privacy from abroad.

Individuals in Switzerland can utilize "Docsafe", a cloud storage solution promising optimum security for documents.[31] The documents can be uploaded and accessed via the web or an app and are free-of-charge with unlimited storage space. Swisscom's cloud service is comparable to the cloud service of Dropbox but without a desktop client.

For developers Swisscom offers container-based Platform-as-a-Service (Cloud Foundry) called Swisscom Application Cloud public.

New business fields

Swisscom considers infrastructure as the basis of its products and services.[32] Due to increasingly competitive global conditions, the company's current strategy involves adapting to these new conditions by developing business models and by further developing its Natel infinity pricing plans, in order to ensure a sustained source of revenue.[32] Therefore, the company's national and international offerings are to be based on a high-speed cloud infrastructure.[32] Vertical solutions offer growth opportunities for Swisscom in the banking, healthcare and energy sectors.[32] Recent examples in these fields include the testing of driver-less cars,[33] exploring the opportunities in the healthcare market, striving to make intelligent power networks, and forming a partnership with Coop in the area of e-commerce.[34]

Corporate Responsibility

Complying with the recommendations of the Swiss Code of Best Practice for Corporate Governance 2014 issued by economiesuisse and meeting the requirements of the Ordinance Against Excessive Compensation in Listed Stock Companies, Swisscom is practices effective and transparent corporate governance.[35] At present, Swisscom's corporate responsibility strategy involves fostering long-standing partnerships in the areas of climate and environmental protection, sustainable living and working, social responsibility and media expertise.[36]

Competition

Other big telecom companies competing in the mobile business are Salt and Sunrise Communications AG. For the 6th consecutive year, "Connect" magazine named Swisscom the winner of its yearly network test by comparing telephone and data services of the three largest providers in 2015.[37]

Connect network test

In the category "phone network", Sunrise came out top with Swisscom in second place due to their slower connection time for telephone calls.[37]

In the category "data network", the success rate for the connection to the internet for all three networks are close to 100%. Swisscom provides the fastest download and upload data rate, even in less urban areas.

As such, Connect magazine awarded Swisscom the prize of "Best Network". However, the gap between Swisscom and the two other companies has shrunk significantly since 2012. The test also showed big improvements in services for all companies involved.[38]

References

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  9. ↑ 9.0 9.1 9.2 9.3 9.4 9.5 Lua error in package.lua at line 80: module 'strict' not found.
  10. ↑ Lua error in package.lua at line 80: module 'strict' not found.
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  14. ↑ Lua error in package.lua at line 80: module 'strict' not found.
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  16. ↑ 16.0 16.1 16.2 16.3 16.4 16.5 Lua error in package.lua at line 80: module 'strict' not found.
  17. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  18. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  19. ↑ 19.0 19.1 Lua error in package.lua at line 80: module 'strict' not found.
  20. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  21. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  22. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  23. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  24. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  25. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  26. ↑ 26.0 26.1 Lua error in package.lua at line 80: module 'strict' not found.
  27. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  28. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  29. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  30. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  31. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  32. ↑ 32.0 32.1 32.2 32.3 Lua error in package.lua at line 80: module 'strict' not found.
  33. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  34. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  35. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  36. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  37. ↑ 37.0 37.1 Lua error in package.lua at line 80: module 'strict' not found.
  38. ↑ Lua error in package.lua at line 80: module 'strict' not found.

External links

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