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Capital expenditure

Swisscom remains committed to maintaining the high quality and availability of its network infrastructures. In Switzerland this involves making targeted investments in ultra-fast broadband network expansion, migrating to an All-IP-based infrastructure, and ensuring a state-of-the-art mobile network.

See report pages 49-51

In Italy, Fastweb operates a network comprising a proprietary fibre-optic network and a copper-­based broadband access infrastructure. Fastweb is also systematically expanding this network infrastructure.

In CHF million, except where indicated   2015   2014   Change
Fixed access & Infrastructure   509   464   9.7%
Expansion of the fibre-optic network   435   440   –1.1%
Mobile access   210   235   –10.6%
Customer driven   251   218   15.1%
Projects and others 1   394   387   1.8%
Swisscom Switzerland   1,799   1,744   3.2%
Fastweb   581   682   –14.8%
Other operating segments   48   38   26.3%
Group Headquarters and elimination   (19)   (28)   –32.1%
Total capital expenditure   2,409 2   2,436 2   –1.1%
Thereof Switzerland   1,822   1,751   4.1%
Thereof foreign country   587   685   –14.3%
Total capital expenditure as % of net revenue   20.6   20.8  
1 Including All IP migration.
2 Excluding capital expenditure of CHF 18 million (2014: CHF 24 million) in real estate projects, for which sales contracts were concluded and the purchasers made payments in the same amount.

Capital expenditure incurred by Swisscom decreased year-on-year by CHF 27 million or 1.1% to CHF 2,409 million, corresponding to 20.6% of net revenue (prior year: 20.8%). Swisscom Switzerland accounted for 75% of 2015 capital expenditure, while Fastweb accounted for 24% and Other Operating Segments 1%.

Capital expenditure incurred by Swisscom Switzerland rose year-on-year by CHF 55 million or 3.2% to CHF 1,799 million, corresponding to 18.8% of net revenue (prior year: 18.7%). The increase was due to the expansion and upgrading of the broadband network with the latest technologies. At the end of 2015, Swisscom had connected around 2.9 million households and businesses to ultra-fast broadband (speeds in excess of 50 Mbps). Of these, some 2.0 million were equipped with state-of-the-art technologies – from fibre-to-the-home (FTTH) to the latest fibre-optic technologies such as fibre-to-the-street (FTTS), fibre-to-the-building (FTTB) and vectoring technology. Swisscom is leading the way internationally. By the end of 2015, Swisscom had extended 4G/LTE coverage to 98% of the Swiss population.

By contrast, Fastweb reduced its capital expenditure by CHF 101 million or 14.8% to CHF 581 million in 2015, largely as a result of the lower EUR exchange rate. This corresponds to a reduction of EUR 21 million or 3.7% to EUR 541 million in local currency terms, and was mainly due to lower investment in network infrastructure resulting in a ratio of capital expenditure to revenue of 31.2% (prior year: 33.3%). Around 34% of total capital expenditure was directly related to customer growth.