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Telekom Malaysia - Huawei

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Competition and responsibility<br />

In 2005, Swisscom was competing mainly<br />

against two broadband service providers<br />

(BSPs), namely Cablecom and Sunrise.<br />

Building on its strengths as a TV cable<br />

operator and bi-directional cable network,<br />

Cablecom was able to offer bundled cable TV and<br />

broadband access services. Sunrise appealed greatly<br />

to price-sensitive .customers through its economy<br />

packages.<br />

With its well-known brand and diverse services,<br />

Swisscom boasted the lion’s share of the broadband<br />

market. However, it had no outstanding advantages<br />

in the field of fixed broadband services, where<br />

market competition was intense. First, the majority<br />

of its fixed broadband subscribers used ATM<br />

DSLAM. Given the limitations of ATM DSLAM<br />

equipment relaying for ADSL, subscribers could<br />

only receive modest bandwidth and thus were<br />

missing out on services such as IPTV. As a result,<br />

Swisscom risked losing those customers to other<br />

operators.<br />

Moreover, ATM DSLAM came with relatively<br />

high costs of operation and maintenance (O&M),<br />

which had significant effects on its profits and<br />

reduced its competitiveness. Maintaining its<br />

competiveness in the broadband market was a key<br />

issue for the operator.<br />

Swisscom launched a broadband access<br />

acceleration program intending to invest CHF2.0-<br />

3.0 billion (USD2.5-3.8 billion) over a period of six<br />

years in order to realize the strategic transformation<br />

of its broadband access business. The operator<br />

aimed for one million Swiss homes (roughly onethird<br />

of the population) passed with FTTH by<br />

the end of 2015, with 80% of Switzerland covered<br />

with high-definition TV.<br />

Building a high-quality<br />

access network<br />

Following a thorough assessment, Swisscom<br />

decided to simultaneously deploy fiber and VDSL2,<br />

to satisfy the need for ultra-high bandwidth. It<br />

intended to increase bandwidth through FTTH in<br />

the 20 largest cities and suburbs and FTTC for the<br />

rest of Switzerland.<br />

Simultaneous deployment of fiber and<br />

VDSL2 technology<br />

GPON and Point-to-Point (P2P) are two<br />

mainstream modes for optical fiber access. Based<br />

on the point-to-multipoint concept, one GPON<br />

optical interface can support up to 128 subscribers.<br />

DEC 2011<br />

36

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