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5 Provisions


In CHF million
  Dismantling
and restora-
tion costs
  Regulatory
and ComCo
proceedings
 

Other
 

Total
Balance at 31 December 2015   593   310   236   1,139
Additions of provisions   1   1   8   10
Present-value adjustments   63     1   64
Release of unused provisions   (1)     (1)   (2)
Use of provisions   (2)   (186)   (5)   (193)
Balance at 31 March 2016   654   125   239   1,018
Thereof current provisions     11   153   164
Thereof non-current provisions   654   114   86   854

Provisions for dismantling and restoration costs

The provisions for dismantling and restoration costs relate to the dismantling of the mobile base stations and transmitter stations of Swisscom Broadcast and the restoration to its original state of the land owned by third parties on which the stations are located. The provisions are computed by reference to estimates of future dismantling costs and are discounted using an average interest rate of 1.07%. The drop in the discount rate resulted in an effect of CHF 61 million, recognised under property, plant and equipment. The non-current portion of the provision is expected to be settled after 2020.

Provisions for regulatory and antitrust proceedings

In accordance with the revised Telecommunications Act, Swisscom provides interconnection services and other access services to other telecommunication service providers in Switzerland. In previous years, several telecommunication service providers demanded from the Federal Communi­cations Commission (ComCom) a reduction in the prices charged to them by Swisscom. Based on legal assessments, Swisscom raised provisions in prior years. The provisions recognised in the 2015 consolidated financial statements have not changed materially during the current financial year.

In 2009, the Competition Commission (ComCo) sanctioned Swisscom for abuse of a market-­dominant position in the case of ADSL services in the period up to the end of 2007 and levied a fine of CHF 220 million. Swisscom appealed the ruling to the Federal Administrative Court. In October 2015, the Federal Administrative Court confirmed in principle the Competition Commission’s decision and reduced the penalty imposed by the Competition Commission from CHF 220 million to CHF 186 million. As a result of this decision, Swisscom recognised a provision of CHF 186 million in the third quarter of 2015. Swisscom does not consider the sanction justified and has lodged an appeal with the Federal Court. At the beginning of 2016, Swisscom paid the penalty of CHF 186 million charged by the Competition Commission.

Other provisions

Other provisions mainly include provisions for termination benefits and environmental, contractual and tax risks. The other provisions recognised in the 2015 consolidated financial statements have not changed materially during the current financial year.