The dispute between Swisscom and Weko
300,000 fiber optic connections blocked
Due to a missing legal dispute with Weko, the 300,000 fiber optic links already built cannot be commercialized. According to new CEO Christoph Eichlemann (45), Swisscom is working with Weko to find a solution.
The fiber-optic dispute with the Competition Commission (Weko) has serious consequences for Swisscom. “At the end of June, Weko’s ban blocked more than 300,000 fiber-optic links that had been built but could not be commercialized,” new CEO Christoph Eichlemann (45) told reporters on a conference call.
Weko halted expansion based on a mono-fiber model with only one supply line from the telephone switchboard to the street hatch. Swisscom’s appeals against Weko’s ruling failed first to the Federal Administrative Court and then to the Federal Supreme Court. The ban led to the suspension of the partnership with Salt in the expansion of optical fibers.
We discuss possible solutions.
However, Swisscom has continued to expand its fiber optic connections based on the mono-fiber model, but is not allowed to operate it. However, Weko requires expansion according to the four-fiber model. There was no news about this. “Swisscom is interested in finding a quick solution and is in extensive talks with the competition commission,” she says.
“We are in weekly contact with the ComCo. We discuss possible solutions. We still assume we will find one this year. Unfortunately, we cannot provide any more detailed information at this time,” says Eichlemann.
Half-year profit decreased by 25 percent
Swisscom reported a 25 percent drop in half-year net profit to CHF785 million compared to the previous year. This is mainly due to the special effects. Altogether, these amounts to 327 million francs, explained CFO Eugene Sternitz (49). Before the special effects, net profit would have increased to CHF 867 million. It would have been an 8.2 percent increase.
The special effects are the sum total of provisions for legal disputes, reassessments from the fiber-optic cooperation with Italian subsidiary Fastweb and the sale of a stake in Belgium as well as a pension fund adjustment. In the semester last year, this boosted Swisscom’s net profit by 245 million francs, while in the first half of this year it was burdened with 82 million francs.
10 million allowances
The burdens this half-year come from provisions for legal disputes, Stermetz explained: “Most of this consists of Weko’s CHF71.8 million fines for abuse of its dominant position in broadcasting live football and ice hockey matches on pay-TV in the years 2006 to 2013. »
The CFO didn’t want to say where the additional $10 million provisions for legal disputes came from. “We assess all ongoing litigation on a quarterly basis. We are not saying which litigation we have increased provisions for.”
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