||This article contains content that is written like an advertisement. (November 2008)|
|Traded as||SIX: SCMN|
|Founded||1 January 1998 (Bern, Switzerland)|
|Urs Schaeppi (CEO), Hansueli Loosli (Chairman)|
|Products||Fixedline & Mobile Telephony
Fixedline & Mobile Internet
IT Services & Networking Solutions
|Revenue||CHF 11.703 billion (2014)|
|CHF 2.322 billion (2014)|
|Profit||CHF 1.706 billion (2014)|
|Total assets||CHF 20.932 billion (end 2014)|
|Total equity||CHF 4.457 billion (end 2014)|
Number of employees
|21,125 (FTE, end 2014)|
Swisscom AG is a major telecommunications provider in Switzerland. Along with Swiss Post, it is a successor company to the former state-owned PTT (Post, Telegraph and Telephone). Its headquarters are located at Worblaufen near Bern. The Swiss Confederation owns 51.0 percent of Swisscom.
The first telegraph service was started between St. Gallen and Zurich in 1852 and was the start of telecommunications in Switzerland. Twenty years after the invention of the telephone by Alexander Graham Bell, the telephone had been introduced in all Swiss cantons (1896). The first semi-automatic telephone switchboard was set up in Zurich-Hottingen in 1917. Switzerland had 500,000 telephone subscribers in 1948 and 1 million subscribers by 1959. That year, the Swiss telephone network became the first fully automated network in the world. In 1962, Telstar – the first telecommunications satellite – was launched into space. At Expo 1964 in Lausanne, the first exchange to permit international direct dialing was unveiled. Twelve years after Telstar, in 1974, the Leuk satellite earth station was set up in the canton of Wallis. In 1975, a mobile telephone network service for vehicles (NATEL = “NAtionales autoTELefonnetz” in German or national car phone network) was introduced. In 1985, the first fibre-optic cable was laid between Berne and Neuchâtel.
The former state-owned PTT (Post, Telegraph, Telephone, founded 1852) was privatised in stages from 1988 onwards and became a public limited company with special legal status in October 1998. The Swiss Confederation currently holds 51.0% of the share capital. The Telecommunications Enterprise Act limits outside participation to 49.9% of the share capital.
In its 5 April 2006 message, the Federal Council proposed to Parliament that Swisscom should be completely privatised and that the Swiss Confederation should sell its shares in stages. On 10 May 2006, the National Council declined to support the proposal. On 20 May 2006 the Advisory Committee of the Council of States advised the Council of States to endorse the proposal – but only so that it could be referred back to the Federal Council for revision.
Swisscom (Switzerland) Ltd underwent a reorganization on 1 January 2008. The Group companies Fixnet, Mobile and Solutions were dissolved. It is now replaced by the Residential Customers, Small and Medium-Sized Enterprises, Enterprise Customers, Wholesale as well as the IT, Network & Innovation segments. The IT platforms and the fixed-network and mobile communications infrastructures of the former Group companies were merged into the “IT, Network & Innovation” Division.
Currently, Swisscom operations are performed via three operating divisions:
- Swisscom Switzerland,
- Fastweb, and
- Other operating segments.
This division is divided into the following segments: Residential Customers, Small and Medium-Sized Enterprises, Enterprise Customers, Wholesale and IT, Network & Innovation.
Swisscom Network & IT builds, operates and maintains Swisscom's nationwide fixed-line and mobile communications infrastructure in Switzerland. The division is also responsible for the corresponding IT platforms and is in charge of migrating the networks to an integrated IT and IP-based platform (All-IP).
In the first half of 2007, Swisscom acquired a majority holding in the Italian company FASTWEB. During the offer period, which ran from 10 April to 15 May 2007, Swisscom succeeded in acquiring 80.7% of FASTWEB's share capital, which, when added to Swisscom's existing stake, meant that Swisscom owned 82.4% of FASTWEB shares by the cut-off date of 22 May. The total transaction amounted to EUR 4.2 billion or CHF 6.9 billion. FASTWEB currently operates the second largest network in Italy.
The participation portfolio covers the five business fields of "broadcasting" through Swisscom Broadcast, "network construction and maintenance" through Cablex, "Building management and business travel (incl. vehicle fleet management)" through Swisscom Real Estate Ltd, "Billing and collection" through Billag, Alphapay and Medipa Abrechnungskasse, and "Mobile Solutions" through Minick Holding and Sicap.
International Carrier Services
June 26, 2009, MTN Group participated in Belgacom ICS (BICS), a subsidiary of Belgacom, by merging it with its own subsidiary, MTN ICS. BICS will function as official international gateway for all international carrier services of Belgacom, Swisscom and MTN Group. These companies respectively hold 57.6%, 22.4% and 20.0% of the shares of the company.
Internet of Things (IoT)
The Company will start testing a network for the Internet of Things, or Low-Power Wide Area Network (LPWAN), in the Geneva and Zurich regions in April of 2015.  The pilot project will serve as an addition to the existing M2M mobile network solutions, and it has been estimated that by the year 2023 over 3 billion connections will be running via the IoT. 
Swisscom Hospitality Services
Swisscom Hospitality Services (SHS) is a division of Swisscom AG that supports the hotel industry with innovative network and communication solutions.
Founded in 2002 as Swisscom Eurospot, the company originally specialised in providing High-Speed Internet Access (HSIA) services to hotel guests in European 4- and 5-star hotels. With the rising complexity of information and communication technology and increasing cost pressures affecting the hotel business, SHS has brought forward a wider range of applications including Voice over IP, Hotel TV, High-speed Internet and tablet-based room controls that are offered through a converged hotel network infrastructure.
In 2012, the company introduced a Managed Network Services offering specifically for its hotel customers.
In June 2015, Swisscom Hospitality Services became part of a new company, Hoist Group, following its acquisition by the Sweden-based HoistLocatel. Hoist Group develops and supplies systems, products and services to independent hotels and hotel chains, hospitals and public venues in Europe and the Middle East.
Other big telecom companies competing in the mobile business are Salt and Sunrise Communications AG. For the 6th consecutive year, "Connect" magazine named Swisscom the winner of its yearly network test by comparing telephone and data services of the three largest providers. 
Connect network test
In the category "phone network", Sunrise came out top with Swisscom trailing at a very close second. Both Swisscom and Sunrise have similarly excellent speech quality via phone transmission, but Sunrise beats Swisscom and becomes the winner, due to its quick connection time for calls. 
In the category "data network", the success rate for the connection to the internet for all three networks are close to 100%. Swisscom provides its users with the fastest download and upload data rate, even in less urban areas.
As such, Connect magazine awarded Swisscom the prize of "Best Network". However, the gap between Swisscom and the two other companies has shrunk significantly since 2012. The test also showed big improvements in services for all companies involved. 
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