Business overview

Swisscom Switzerland

In CHF million, except where indicated   2011   2012   2013
Net revenue   8,449   8,461   8,449
Segment result before depreciation and amortisation   3,662   3,557   3,547
Margin as % of net revenue   43.3   42.0   42.0
Capital expenditure in property, plant and equipment and other intangible assets   1,400   1,852 1   1,516
Full-time equivalent employees at end of year   12,129   11,862   12,463
1 Including expenses of CHF 360 million for mobile frequencies.

The Residential Customers, Small and Medium-Sized Enterprises, Corporate Business, Wholesale and Network & IT divisions are reported separately in the segment reporting.

Residential Customers

The Residential Customers segment is the contact partner for mobile and fixed-line customers. It provides Switzerland with broadband access lines, serves a growing number of Swisscom TV subscribers and operates Switzerland’s one of the most frequently visited Internet portals www.bluewin.ch. The Residential Customers segment offers telephone, Internet and TV services – all from a single source – and is also responsible for handset sales and directories business.

Small and Medium-Sized Enterprises

The Small and Medium-Sized Enterprises segment offers a comprehensive range of products and services – from fixed-line and mobile telephony to Internet and data services to IT infrastructure maintenance and operation. Small and Medium-Sized Enterprises receive bespoke integrated solutions: suitable connections, secure access, professional services and intelligent networks.

Corporate Business

Whether voice or data, mobile or fixed network, individual products or integrated solutions, as a leading provider in the field of business communications, the Corporate Business segment supports customers with the planning, implementation and operation of their IT and communications infrastructure, including the provision of cost-efficient solutions and reliable services.

Wholesale

The Wholesale segment provides various services for other telecommunications providers, such as regulated access to the “last mile” as well as commercial voice, data and broadband products. The Wholesale segment also covers roaming with foreign providers.

Network & IT

The Network & IT segment builds, operates and maintains Swisscom’s countrywide fixed network and mobile communications infrastructure. It is also responsible for the associated IT platforms, and is driving forward migration of the networks to an integrated IT- and IP-based platform (All IP). Network & IT also provides support functions for Swisscom Switzerland; expenses incurred are not charged to the individual segments. The Network & IT segment therefore only reports expenses but no revenue.

Fastweb

In EUR million, except where indicated   2011   2012   2013
Net revenue   1,746   1,700   1,642
Segment result before depreciation and amortisation   506   500   505
Margin as % of net revenue   29.0   29.4   30.8
Capital expenditure in property, plant and equipment and other intangible assets   448   441   565
Full-time equivalent employees at end of year   3,079   2,893   2,363

Fastweb provides products and services for voice, data, Internet and TV, as well as a full complement of VPN and mobile communication services. Fastweb offers its services in all large towns and cities in Italy and in all market segments. The services are provisioned directly via the company’s own fibre-optic network or via unbundled fixed access lines and wholesale products of Telecom Italia.

Other operating Segments

In CHF million, except where indicated   2011   2012   2013
Net revenue   1,708   1,728   1,819
Segment result before depreciation and amortisation   300   274   303
Margin as % of net revenue   17.6   15.9   16.7
Capital expenditure in property, plant and equipment and other intangible assets   169   167   195
Full-time equivalent employees at end of year   4,514   4,419   4,964

Other operating segments mainly comprises Swisscom IT Services, Group Related Businesses and Swisscom Hospitality Services. Swisscom IT Services ranks as one of the leading providers specialising in the integration and operation of complex IT systems. Its core competencies are in the fields of IT outsourcing services, workplace services, SAP services and finance services. Group Related Businesses manages a portfolio of small and medium-sized enterprises, delivering services that are mainly related to or help support Swisscom’s core business. Swisscom Hospitality Services supports the hotel industry worldwide with innovative network and communication solutions.

Group Headquarters

Group Headquarters chiefly comprises the Group divisions Group Business Steering, Group Strategy & Innovation, Group Communications & Responsibility, and Group Human Resources.