General conditions and market environment
Swisscom operates in a dynamic environment. Changes continue to occur at a swift pace. Megatrends such as demographic change, new working models and the growing importance of ecological and social sustainability are shaping and altering society and the economy and also impact the activities of Swisscom. By the same token, technology trends such as the expansion of ultra-fast broadband, the increasing penetration of cloud computing and advances made in the field of artificial intelligence also influence Swisscom’s business in the short to medium term. Swisscom’s economic environment is currently characterised by global uncertainties. Causes include the supply chain bottlenecks, rising inflation and heightened geopolitical risks such as trade relations between the US and China or the war in Ukraine.
Digitisation is taking hold of more and more areas of our lives, and customer behaviour is undergoing a lasting change, as indicated by, among other things, the increased use of online channels for shopping and making contact as well as the rise of contactless payment. Customers’ expectations regarding customer-centric offerings, high-performance and stable networks, a seamless and personalised customer experience and transparent sustainability efforts will continue to rise.
Digitisation is leading to new, rapidly developing business models. Swisscom’s core business is characterised by competition with strong price pressure. Another slight contraction was observed in the overall market for connectivity services in Switzerland and Italy. By contrast, the market for IT services in Switzerland continues to grow moderately.