Capital expenditure


Swisscom remains committed to maintaining the high quality and availability of its network infrastructure in Switzerland, in particular by making targeted investments in fibre-optic network expansion, migration to an all-IP-based infrastructure, and ensuring a state-of-the-art mobile network.

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In Italy, Fastweb operates a network comprising a proprietary fibre-optic network and a copper-based broadband access infrastructure. This network infrastructure is also undergoing further expansion in specific areas.

Capital expenditure in the 2013 financial year

In CHF million, except where indicated   2011   2012   2013   Change
Fixed access   409   425   410   –3.5%
Mobile access   151   226   271   19.9%
Expansion of the fibre-optic network   301   317   292   –7.9%
Customer driven   172   162   159   –1.9%
Projects and others 1   367   362   384   6.1%
Mobile frequencies     360    
Swisscom Switzerland   1,400   1,852   1,516   –18.1%
Fastweb   552   531   695   30.9%
Other operating segments   169   167   195   16.8%
Group Headquarters and elimination   (26)   (21)   (10)   –52.4%
Total capital expenditure in tangible and other intangible assets   2,095   2,529 2   2,396 2   –5.3%
Total capital expenditure as % of net revenue   18.3   22.2   21.0  
1 Including All IP migration.
2 Excluding capital expenditure totalling CHF 49 million (prior year: CHF 32 million) in a real-estate project for which a sales contract was signed and an advance payment made by the buyer in the same amount.

Swisscom’s capital expenditure was CHF 133 million or 5.3% lower year-on-year at CHF 2,396 million. The prior-year figure included CHF 360 million for investments in existing and new mobile frequencies. Excluding these costs, capital expenditure was up by 10.5% and amounted to 21.0% of net revenue (prior year: 19.1% adjusted). Swisscom Switzerland accounted for 63% of 2013 capital expenditure, while Fastweb accounted for 29% and other operating segments 8%.

Capital expenditure incurred by Swisscom Switzerland fell year-on-year by CHF 336 million or 18.1% to CHF 1,516 million. Excluding investments for mobile frequencies, capital expenditure was CHF 24 million or 1.6% higher, corresponding to 17.9% of net revenue (prior year: 17.6% adjusted). The increase is attributable to the expansion of the broadband network and, in particular, the modernisation of the mobile network with the latest-generation LTE (Long Term Evolution) mobile technology.

Fastweb’s capital expenditure was CHF 164 million or 30.9% higher year-on-year at CHF 695 million, which represented an increase of EUR 124 million or 28.1% to EUR 565 million in local currency terms. The main reason for increase was fibre-optic network expansion in Italy. The capital expenditure to net revenue ratio amounted to 34.4% (prior year: 25.9%). Around 40% of total capital expenditure are related to the customer growth.

At CHF 195 million, capital expenditure incurred by other operating segments was CHF 28 million or 16.8% higher year-on-year, chiefly as a result of an increase in investment in IT infrastructure by Swisscom IT Services and in ongoing construction projects by Swisscom Real Estate.