Activity Report - Swisscom

7
An overview of 2002
Swisscom Fixnet
Swisscom Mobile
Enterprise Solutions
debitel
Other business areas
Employees
Customers
The community
The environment
Investors
... despite difficult market conditions
All told, the telecoms sector experienced the same difficult year as the economy as
a whole. The fragile upswing at the start of 2002 was short-lived. Even in 2001, huge
amounts of cash continued to flow into the telecoms sector as many investors followed
the “pied pipers” of the “new economy”. What was heralded as the new-age
“
economy” proved to be an illusion. Since early 2002 the market has been consolidating.
Those companies which in the preceding years were able to create sustainable
value and a high level of customer benefit stand a better chance of survival. In
the case of new entrants, those that focus on the domestic market will fare better.
The telecoms sector will remain unstable for the foreseeable future as many companies
continue to pursue uncertain business models or to suffer from weak finances.
Further mergers and the sale of whole companies or parts of companies are envisaged.
Over the medium term, market forces will dictate a further streamlining of
the sector.
We are a Swiss provider with an international flair
Which options must we pursue today in order to strategically strengthen our position
tomorrow? We firmly believe Swisscom will remain successful provided it continues
to focus on core competencies, maintain a clear geographical positioning and
deliver above-average operational and financial performance. Our thinking and operations
are focused above all on increasing the value of the company. In Switzerland
our key competencies are in fixed-network and mobile communications, where
we have a solid basis and are the leading player in all key market segments. Outside
Switzerland we have an investment in debitel and a minority shareholding in Cesky
Telecom and Infonet. Since regulatory requirements provide little room for further
growth in Switzerland, we continue to review our options to see where we can
strengthen our position in Europe. In particular, we are examining cross-border
business models for market segments with an international focus, or activities which
could be implemented without the need for major organizational or technical integration
– for example, network-independent services in mobile communications.
Our strategy is also in line with the strategic goals set by our principal shareholder,
the Swiss government: sustainable preservation and growth of company value,
greater customer orientation, maintenance of our leading market position, and
pursuit of a progressive and socially responsible personnel policy.