Feature Article

January 11, 2013

Swiss Mobile Telecom Market Remains Promising

Switzerland continues to be a promising mobile telecom market – despite some negative conditions taking place in other European nations.

In a recent BMI analysis, it was highlighted that Switzerland’s residents earn high incomes and want advanced telecom services, Fast Market Research said. Also, there is still “subscription growth potential.”

“The market also contains potential for value generation in the short and medium term,” BMI added.

One trend seen at the end of 2012 was when Swisscom AG launched a 4G/LTE network in Switzerland. The network was available in 26 locations, as of December. And by the end of 2013, the network will cover 70 percent of the Swiss population.

“The launch of LTE, roll-out of FTTH infrastructure and the associated opening of higher VAS markets will help counter price competition in traditional services,” BMI said.

Not all is positive in the Swiss market. There were declines in average revenue per user (APRU) in recent years, as well as lower growth of non-voice revenue. BMI added that there was a slower than predicted drop in operator ARPUs for the three months ending with June 2012.

“Based on the trends … in other Western European markets, most notably in the Netherlands, we believe this could represent the beginnings of SMS-IP substitution as subscribers take up services such as WhatsApp,” BMI added. “This is a threat directly arising from the proliferation of smartphone ownership and uptake of wireless data services, and will lead to a decline in revenues, although it is not possible to determine the scale of the impact at this time.”

In another key trend, a report from Research and Markets showed that two of the three mobile network operators in Switzerland changed ownership in 2012. The two companies may merge, as well, according to a 2012 report. There were other recent events, too, Research and Markets reported. The Swiss market saw that mobile data use among consumers increased. GSM spectrum was also allocated for 3G use in the nation. Also, Swisscom Broadcast was given a national mobile TV license.

Edited by Brooke Neuman

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