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Activity Report - Swisscom

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Customers *<br />

In millions<br />

12<br />

10<br />

8<br />

6<br />

*<br />

At December 31<br />

00 01 02<br />

39<br />

An overview of 2002<br />

<strong>Swisscom</strong> Fixnet<br />

<strong>Swisscom</strong> Mobile<br />

Enterprise Solutions<br />

debitel<br />

Other business areas<br />

Employees<br />

Customers<br />

The community<br />

The environment<br />

Investors<br />

Moreover, a combination of the generally poor state of the economy<br />

and the launch of the new single European currency led to a marked<br />

reluctance among German consumers to make purchases in the first<br />

few months of the year. The result was a drastic slump in revenues<br />

right across the board, which also affected telecommunications products.<br />

The same development was observed in the Dutch market.<br />

The market situation impacted most strongly on smaller UMTS license<br />

holders, who found it difficult to meet their UMTS auction and network<br />

development obligations. This led to the long-predicted market consolidation,<br />

with the result that the number of German UMTS network<br />

operators fell from the original six to just four.<br />

Sustainability is the core focus of all activities<br />

In the year under review, debitel succeeded in bucking the general<br />

trend. Even in boom times, the company recognized the importance of<br />

customer loyalty. In 2002, the company again invested a considerable<br />

amount in customer loyalty measures, and focused even more strongly<br />

on income. In this way, debitel is making a sustainable investment in<br />

the future. Customer retention successes have now stabilized at a very<br />

high level. In order to safeguard the positive results in spite of the<br />

necessary outlays, debitel has also improved its terms of business with<br />

network operators and implemented wide-ranging internal costcutting<br />

programs.<br />

Access to the entire German market both via mass market channels and<br />

via specialist dealers with extensive advisory skills has always been one<br />

of debitel’s strengths. In September 2002, the company extended its<br />

exclusive sales partnership with the Electronic Partner-Gruppe for a<br />

further five years, thereby securing a key specialist sales partner over<br />

the long term.<br />

The cooperation agreement with the German Ringfoto Group signed<br />

in October 2002 means that debitel has now added another specialist<br />

retail chain with some 2,700 sales outlets nationwide to its sales network.<br />

Innovative new services<br />

Innovative services also make a major contribution to ensuring customer<br />

satisfaction. debitel launched the debitel Jamba! supplementary<br />

service early in 2002. This is the first mobile tariff whose basic charge<br />

includes a subscription for premium mobile Internet services (WAP), for<br />

which additional charges would otherwise be payable. The debitel

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