Swisscom Conference Call Notes – Fibre to the Home Market Share, 5G CAPEX impact, Fastweb Wholesale Sales, UPC Sunrise New Brand & Salt Competition

The quotes below were taken from the Swisscom earnings conf call

Market Share – Fibre to the Home

What have you seen in the areas where you have expanded with fibre to the home (FTTH). Are there any signs that you are kind of gaining market share for example?

CEO: In areas where we, it depends region by region on the local competition. It's very fragmented. But we have regions where we gain market share in the fiber to the home area and we have other regions where we have [...] pressure. [...] It's really a very very fragmented picture. But overall, [...] we are more competitive against cable operators if we have fiber to the home.

How the 5G rollout is impacting Swisscom Capex envelope

Actually, you shouldn't assume that we will now have a peak on CAPEX because of 5G. Because what we are doing is actually replacing investments in 4G through 5G. So overall the CAPEX for the 5G roll out, it's a level where we were in the past with our mobile CAPEX. And you should also assume that we made a lot of investments in the networks already today. So all our base stations have a fiber back haul in. A lot of operators in the world, they have to do this. So that's why we don't get these big peaks on 5G investments.

On Wholesale Fastweb Sales

You know on wholesalers, we think that we can have growth because there are a lot of elements which push actually the wholesale business. On the one side we have these networks, 5G networks which are rolling out in Italy. This needs a back rolling base station connections. That's the business for Fastweb where we are strong in. Second there are new players on the market which actually get wholesale products from Fastweb, retail players. So that's the second element and I would say these two elements will continue. So that why were are confident that wholesale business will continue to grow.

Sunrise and UPC post merger brand positioning, Competition

would you think that that if sunrise and UPC start to operate as one that they would step up the overall competitive intensity? Or do you think what you see now, you know, it is what you put into your business plan going forward, because you’re talking about where it is at the moment, but I’m sort of more thinking about what your expectations, post merger are for them.

CEO: You know, I think that it's quite obvious if they have a single brand, if they have a new product portfolio, they will certainly be louder to position the new brand to position that the new story. I think that that will be the case. The question is that's hard to judge. What will be that the commercial offer at the end? They will certainly try to to leverage their different customer bases. They have the mobile customer base, more mobile center customer base from sunrise and wire line customer base from UPC, try to do cross and up selling. But I don't have visibility, more visibility on it. If I would be, you know, on this side, you would position the new brand.

Salt – Competitive Dynamics in Switzerland

In terms of competitive dynamics in Switzerland. So if you maybe talk about what you’re seeing from salt currently, also is there any indication that your FTTH footprint expansion is helping your broadband net adds?

CEO: So, first on the on the competitive dynamic in Switzerland, [...] perspective of salt. So you know this partnership with Salt, it's just in the starting phase. So actually the footprint extension through through fiber to the home is still on a low level. The bigger roll out will be in 2022 on 2025. And then we have two separate impacts. We have have the impact that Salt will be competing in the fiber to the home to us too. On the other side we have also a stronger value proposition to compete against cable operators. And so these are the two elements. Overall fibre to the home will strengthen the competitive footprint of Swisscom. What is happening on the pricing side, that's another another question. So we will certainly have for further aggressive promotions that's for sure.

Using Python to transcribe Conf Calls, Webcasts

The above audio was uploaded to an S3 Amazon Bucket, then was fed via a Python script to Amazon Transcribe service which resulted in a raw transcript. That raw transcript was then used for the quotes above. By default Amazon Transcribe does not seperate speakers, has difficulty with abbreviations or names and also speakers with strong Swiss German accent when speaking english (Urs Schaeppi, CEO of Swisscom, for example).

For more on transcription see this article: Link

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