New growth
The market for telecommunications in Switzerland is saturated, especially for broadband and TV, but Swisscom expects further moderate volume growth in the postpaid segment of mobile communications. Price pressure will remain high in all markets, and Swisscom therefore expects revenue to decline slightly in the telecommunications market as a whole. Market experts believe the IT services market will continue to enjoy moderate growth over the next few years, being driven by the growing use of ICT in many industries. Due to the Covid-19 pandemic, any forecast of economic development is subject to very considerable unknowns, leading to uncertainties particularly with regard to the development of the market for IT services.
Swisscom is targeting growth in the following three areas in particular: in its core business, in the IT market and in new business areas. By developing its core business further, Swisscom intends to exploit growth opportunities, e.g. in the Internet of Things (for both residential and business customers), in the area of wholesale and in respect of secondary and third-party brands. In the IT sector, the focus is on security, cloud and ICT consulting. Growth in new business areas will come from fintech activities, digital services for SMEs provided by localsearch (Swisscom Directories Ltd), trust services and blockchain-based services. Swisscom actively manages growth areas using clearly defined success criteria. When selecting growth areas, it is guided by future customer requirements, focuses on future-oriented business models offering growth and makes increased use of partnerships.