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Activity Report - Swisscom

Activity Report - Swisscom

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Transmitters<br />

<strong>Swisscom</strong> Broadcast<br />

Number<br />

1 535 Television<br />

908 Radio (VHF and MW)<br />

16 Digital audio broadcast (DAB)<br />

ist dealers, generated revenue of CHF 456 million. However, technological<br />

changes and the state of the economy had a negative impact on<br />

customers’ capital spending, resulting in a 15.8 percent fall in revenue.<br />

The effect of the Millennium, when many new systems were installed<br />

for the 1999/2000 year change, coupled with uncertainty on the part of<br />

customers over whether to switch to voice-over-IP technology, also left<br />

their mark. These trends together with their impact have forced<br />

<strong>Swisscom</strong> Systems to implement restructuring measures. By adjusting<br />

the cost base to reflect market developments and initiating sustainable<br />

efficiency improvements, <strong>Swisscom</strong> Systems intends to continue securing<br />

its position as Switzerland’s market leader in the field of communications<br />

systems.<br />

<strong>Swisscom</strong> Broadcast – 360-degree transmission<br />

With some 240 employees, over 500 transmitter locations and more<br />

than 2,400 transmitters, <strong>Swisscom</strong> Broadcast AG ensures nationwide<br />

broadcast of radio and television signals. In the year under review, the<br />

leading infrastructure operator posted revenues of CHF 176 million<br />

thanks to the attractiveness of its locations and also by sharing its facilities<br />

with third parties. <strong>Swisscom</strong> Broadcast provides customers with a<br />

contractual guarantee of up to 99.9 percent availability for broadcast<br />

signals. The main customers include SRG SSR idée suisse, the three mobile<br />

communications providers, various emergency services and local<br />

radio stations. <strong>Swisscom</strong> Broadcast’s services also include signal supply<br />

for cable network providers, who then redistribute the signals in their<br />

cable networks. Revenue from the broadcast of analog television signals<br />

was down on the previous year, as SRG SSR idée suisse has switched<br />

off the second and third transmitter networks. On the other hand, terrestrial<br />

digital television (DVB-T) is opening up new opportunities and<br />

challenges for <strong>Swisscom</strong> Broadcast. The implementation of this new<br />

technology is scheduled to begin in mid-2003, and digital audio broadcast<br />

(DAB) will also be expanded further in the medium term.<br />

The revision of the Broadcasting Act also presents new challenges for<br />

<strong>Swisscom</strong> Broadcast. One consequence of the regulations proposed by<br />

the Swiss Federal Council would be that licensed broadcasters would<br />

be subsidized by the telecoms providers. For example, <strong>Swisscom</strong> Broadcast<br />

would have to provide wireless terrestrial broadcasting for SRG SSR<br />

idée suisse and other licensed broadcasters at cost-oriented prices.<br />

<strong>Swisscom</strong> does not consider any such subsidization of the broadcasting<br />

sector by the telecoms sector to be in accordance with the “user pays”<br />

principle.<br />

43<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

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