CEO said Switzerland will only have 2 networks

May 16, 2003

The number of companies providing WCDMA 3G mobile services in Switzerland may eventually drop to two because not all of the three license holders will be willing to face the costs and regulatory hurdles, Swisscom Mobile Chief Executive Carsten Schloter said on Friday.

"Each of the three license holders has to invest around CHF400 million annually in a 3G network. You would need a market size of some CHF6 billion to justify that, but that's not achievable," he said at a media conference in Zurich. He said prices are likely to fall due to regulatory action.

Three companies hold a license to provide Swiss 3G services, they are Swisscom- part of UK's Vodafone, France's Orange and Sunrise, a unit of Denmark's TDC.

Swisscom said it could provide 50% of the Swiss population with 3G services. The coverage is expected to grow to around 85%. Mass usage for 3G is still years away, but Swisscom plans to launch a product for corporate customers integrating GSM and 3G technology late this year, Schloter said.

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CEO said Switzerland will only have 2 networks

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