Corporate strategy and objectives

Corporate strategy

Swisscom commands a leading position in the mobile, fixed and broadband submarkets. It is also one of the leading providers in the IT services and TV markets. Fastweb is the leading alternative provider for both retail and business customers in the Italian fixed-line market. In recent years, the advance of technology and changing customer requirements have steadily eroded prices and volumes in the classical usage-based business. The battle with globally active competitors for market share has also intensified. The resulting lower revenue and income need to be offset in order to ensure that sufficient financial resources are available for major investments in new technologies.

Society and the economy will change fundamentally in the coming years. Megatrends such as demographic change, globalisation and robotics will reshape society and the economy and thus impact Swisscom’s business in the long term. Furthermore, a number of specific developments will affect Swisscom’s business in the next few years – for example the spread of mobile payment systems and the trend towards crowdsourcing.

The market environment in which Swisscom operates has already changed radically in recent years. Connectivity is ever-present and will increase further. Countless people, applications and devices will be in permanent communication with each other in future. The digitalisation of society will lead to a fourth industrial revolution (“Industry 4.0”), and production processes and contact with customers will be revolutionised in all sectors. In addition competition between global and local providers will intensify and new competitors – often with disruptive business models – will attempt to gain a foothold in the ICT markets. In response to the far-reaching developments in the market environment and heightened market dynamics, Swisscom periodically re-evaluates its strategy and sets priorities and formulates concrete objectives accordingly.


The vision of Swisscom: the best in the networked world – always and everywhere

In an increasingly interconnected and digitalised world Swisscom offers its customers the best – always and everywhere. Because Swisscom wants people and businesses in Switzerland to be able to fully exploit the opportunities of the interconnected world. Thus, Swisscom is a pioneer and actively drives digitalisation forward and is innovative and courageous in everything it does. As an optimal companion in the networked world, Swisscom strives to ensure simplicity and is a trusted, inspiring partner for its customers. Swisscom helps business customers to create flexible ICT infrastructures, adjust their business processes to meet the new challenges of the digital world and optimise communication and teamwork among their employees. In this formative role, Swisscom is helping to shape this new world and make Switzerland into a leading ICT centre. Through the value that Swisscom creates and, indirectly, its high level of investment, from which other companies also benefit, Swisscom is a key factor in Switzerland’s competitiveness and contributes significantly to the country’s GDP and employment.

At Swisscom, people and their relationships are at the heart of all our activities. Customer focus, sustainability, passion, curiosity and reliability are the values that guide our employees’ actions. To always offer the best in the networked world, Swisscom must consistently meet the highest expectations in terms of infrastructure, customer experience and growth.

Building the best infrastructure

A high-quality infrastructure allows Swisscom to deliver its products and services, provide a consistently positive customer experience and differentiate itself from its competitors. Swisscom wants to offer its customers in Switzerland and Italy the leading IT and communications infrastructure.

Reliance on high-performance networks that are always available will continue to increase in future. Swisscom is fulfilling the ever-growing requirements of its customers with networks that are second to none in terms of security, availability and performance. In the fixed network area, Swisscom’s focus is on driving forward the continuous expansion of the ultra-fast broadband network through deployment of various fibre-optic technologies – both in Switzerland and in Italy. Swisscom is also continuously expanding the mobile ultra-fast broadband network (for example, through LTE advanced), in order to constantly improve network capacity and capacity utilisation.

Swisscom will increase its efficiency through a scalable infrastructure, increasingly virtualised services and infrastructure, and continual improvement processes. The Swisscom Cloud infrastructure offers a high level of quality and security and is the basis for new scalable offerings that are produced in Switzerland. The transfer of internal platforms to the Swisscom Cloud increases scalability, flexibility and cost efficiency. By providing simple programming interfaces the open Cloud gives partners flexible access to infrastructure and provides the basis of an ecosystem for developers. Swisscom is continuing to drive forward the technological transformation from traditional to IP-based solutions. This enables Swisscom to bring new services to market faster, operations and processes become more flexible, and residential customers can access their data from any location and on any device.

Creating the best experiences

To clearly distinguish itself in its core business, Swisscom is committed to delivering first-class service to its customers and inspiring them with unique experiences across the board. Swisscom customers can count on us as a competent, reliable partner and enjoy service that is individual, flexible and personal at all points of contact. From the customer’s perspective, contact with Swisscom should always be simple and convenient.

Swisscom wants to meet the growing expectations of customers regarding availability of data and applications – primarily the demand for real-time access from all locations – with more integrated experiences in future. These experiences go beyond what traditional communication services offer.

When optimising processes and creating new digital services and experiences, Swisscom always takes a customer-centric approach and aims to improve customer perception. In doing so Swisscom aims to further boost customer loyalty and strengthen its brand. Current examples of new services and improved experiences are the personalisation options in Swisscom TV 2.0; the launch of Voice over LTE and WiFi Calling, which further improve the telephony experience; “Smart Enterprise Services”, which assist companies in achieving digital transformation; and the newly launched express delivery service for online purchases.

Realising the best growth opportunities

Although the economic outlook in Switzerland and Italy will remain uncertain, the markets relevant to Swisscom are on the whole likely to continue growing steadily. The main drivers of growth are modest increases in population and the number of households, the rising number of connected devices (as a result of the “Internet of Things”) and the ever-growing use of ICT in a wide variety of industries. Added to this, there is still pent-up demand in Italy due to the relatively low level of broadband penetration.

Swisscom wants to realise growth opportunities by expanding its core business – for example by means of the bundling strategy and growth in TV services and fibre-optic connections. There are also opportunities in other sectors such as banking, healthcare and energy, where Swisscom provides vertical ICT services. New, related business activities, which Swisscom wants to enter selectively, offer further revenue growth potential. Key decision criteria for entering a market include the existence of synergies, potential for differentiation and whether or not it strengthens the core business based on the own network infrastructure. Swisscom is aiming to launch new digital services in selected areas. These services will be offered via the Internet and will in some cases rely on new business models. Examples include the advertising and e-commerce activities that the company has already announced. Other examples of new business areas are the “Internet of Things” and the development of Swisscom Energy Solutions.

Another focus for Swisscom lies in the further development of Fastweb in Italy. Swisscom is aiming to further strengthen Fastweb’s strong market position and generate growth by continuously expanding the ultra-fast broadband network, building partnerships and improving service quality.

In addition to pursuing these strategic goals, Swisscom is also implementing measures that will have a transversal impact on the Group. This is designed to transform the company and create structures fit for the future. Careful use of resources, lean structures and a clear strategy will ensure that Swisscom remains competitive in future on both the product and cost side.

Forerunner in corporate responsibility

Swisscom’s corporate responsibility activities focus on issues which have high relevance for stakeholder groups and at the same time are closely linked to the company’s core business and thus entail market opportunities. Swisscom’s vision is of a modern, forward-looking Switzerland: a country of great opportunities, particularly in the field of sustainability. Specifically, Swisscom focuses on the following six areas as strategic priorities. For each of these it has formulated a long-term target for 2020:

Energy efficiency and climate protection

Together with its customers, Swisscom is aiming to save twice as much CO2 as it emits through its operations and supply chain by 2020. Green ICT enables companies to massively reduce energy consumption and CO2 emissions. Video conferencing and home office solutions generate savings in travel time and costs, and ICT services from the cloud allow business customers to operate their IT operations more efficiently than if they were to use a server of their own. Buildings, vehicles and networks can be managed in an energy-efficient manner thanks to ICT solutions. Swisscom also offers residential customers numerous ways to reduce their carbon footprint, from online billing to a recycling service for mobile phones. Swisscom is committed to reducing its own CO2 emissions from its operations and supply chain and also requires its suppliers to reduce their carbon footprint.

Work-life balance

By 2020, Swisscom wants to be serving one million customers with its offerings in the healthcare sector, such as the Swisscom health platform and fitness sensors, electronic patient dossiers and products from its subsidiary Datasport. Swisscom also wants to give one million customers the opportunity to take advantage of mobile working models by 2020. To this end, it has included Work Smart services in its portfolio and supports mobile working methods through activities such as the Home Office Day.

Media skills and security

Swisscom aims to be the market leader in data security by 2020, helping one million people to use the media safely and responsibly. To date, Swisscom has provided free Internet access to schools and introduced first-time users to the digital world through media training courses. In doing so, Swisscom aims to protect young people in the use of online media by means of technical solutions and offerings that promote media skills.

Attractive employer

Swisscom wants to be one of the most attractive employers in Switzerland by 2020. It offers employees opportunities for personal development and promotes work-life balance. Fair terms and conditions of employment are as important to Swisscom as an active social partnership and an above-average commitment to vocational training. Swisscom employees also have the chance to get involved in social and community projects, for example, by participating in the Corporate Volunteering Programme.

Fair supply chain

In the interests of a fair supply chain, Swisscom is committed to improving employment conditions for more than two million people by 2020. To this end, Swisscom has forged international partnerships that will ensure the implementation of relevant measures in close collaboration with suppliers. The company also commissions annual audits to review whether working conditions at its suppliers are improving.

Networked Switzerland

Swisscom is aiming to supply 85% of all households and businesses with ultra-fast broadband (speeds in excess of 100 Mbps) by the end of 2020. Furthermore, by the end of 2016, 99% of the population will be able to benefit from the fourth-­generation mobile network incorporating 4G/LTE technology. As a result, Swisscom is indirectly contributing around CHF 30 bil­lion to the country’s GDP and helping to create and maintain some 100,000 jobs.

Swisscom’s targets

Based on its strategy, Swisscom has set itself various short- and long-term targets that take economic, ecological and social factors into consideration.

    Objectives   Effective 2015
Financial targets 1        
Net revenue   Group revenue for 2015 of more than CHF 11.4 bil­lion   CHF 11,678 million
Operating income before depreciation and amortisation (EBITDA)   EBITDA for 2015 of around CHF 4.2 bil­lion   CHF 4,098 million
Capital expenditure in property, plant and equipment and other intangible assets   Capital expenditure for 2015 of CHF 2.3 bil­lion   CHF 2,409 million
Other targets      
Ultra–fast broadband in Switzerland 2   Coverage of 85% by the end of 2020   67% or around 2.9 million in excess of 50 Mbps
Ultra–fast broadband in Italy   Coverage of 30% by the end of 2016   25% or 6.3 million
Mobile network in Switzerland   Coverage of 99% with 4G/LTE by the end of 2016   98%
Energy efficiency in Switzerland   +25% by the end of 2015 compared to 1 January 2010   +29.6%
CO2–emissions in Switzerland   –12% by the end of 2015 compared to 1 January 2010   –23.5%
1 As communicated over the course of the year, the financial targets for 2015 were adjusted as a result of the change in the assumed CHF/EUR exchange rate and the creation of a provision for legal proceedings as follows: Group revenue of more than CHF 11.5 bil­lion, EBITDA in excess of CHF 4.0 bil­lion and capital expenditure of more than CHF 2.3 bil­lion.
2 Basis: 3.6 million households and 0.7 million businesses (Swiss Federal Statistical Office – SFSO).