Shareholders' Letter

competition and creates the prerequisites for true differentiation and renewal of service offerings,
which in turn facilitates effective competition. By the end of 2010 Swisscom had already connected
around 230,000 homes and offices with fibre-optic cable. Over one million homes and offices will
be connected by fibre-optic cable by 2015, which equates to one third of Swiss population. Intense
infrastructure competition is forcing market players to speed up fibre-optic expansion – even without
intervention by the regulator. Swisscom therefore welcomes the Federal Council’s recommendation
not to revise the Telecommunications Act. Stable legislation provides legal assurance, a precondition
for such large-scale investments. Swisscom plans to invest a total of around CHF 2 billion
in fibre-optic network expansion up to the end of 2015. At the same time it is investing in expanding
the broadband network using VDSL. The aim is to provide 95 per cent of the population with
VDSL within three years and the remaining 5 per cent with mobile broadband technology. As more
and more people seek mobile Internet access, we are also investing in our mobile infrastructure
by deploying mobile broadband technologies in the existing frequency band (UMTS 900) nationwide.
Swisscom is also expanding capacities in heavily frequented locations such as city centres,
tourist spots or along the train routes of the Swiss Federal Railways, primarily using HSPA+ mobile
technology, but later will also deploy the new mobile communications standard LTE (Long Term
Evolution). Whether fixed-line or mobile, Swisscom invests continuously in network expansion as
well as the security and stability of existing networks. All these investments are designed to ensure
that Switzerland as an information and knowledge society will continue to boast one of the world’s
best telecoms infrastructures.
Swisscom’s approach to sustainability
Sustainable management and long-term responsibility are firmly anchored in Swisscom’s corporate
structure. One of our guiding principles states that Swisscom has a responsibility towards the
environment and society – now and in the future. For example, Swisscom is the largest purchaser
of solar and wind energy in Switzerland. Thanks to the Internet for Schools initiative, some 6,000
schools now enjoy free Internet access. Swisscom also runs a Help Point programme to train older
users how to use mobile phones, smartphones and the Internet. We firmly believe that customers
will pay far more attention in the future to whether a company acts in a sustainable manner – in
economic, ecological and social terms – than is the case today. Which is why Swisscom defined
the following principles:
> We act in an economically responsible manner in the interests of sustainability.
> We provide employees with a working environment that fosters their personal and professional
development by setting them challenging tasks and allowing them to exercise responsibility.
> We act in a socially responsible manner and take the lead in promoting media competence and
protecting minors in the media.
> We help our customers through the products and services we provide to act in an environmentally-friendly
manner and, by so doing, we ourselves take on a pioneering role.
These positioning statements were used as the basis for defining action areas and setting concrete
targets, which are explained in greater detail in this report.
Management changes
Stefan Nünlist, member of the Group Executive Board and long-serving Head of Group Communications,
decided to pursue a new career challenge outside the company. He was succeeded on
1 October 2010 by Kathrin Amacker-Amann. Günter Pfeiffer, member of the Group Executive Board
and Head of Corporate Human Resources, left the company after ten years of service. Human
Resources is headed ad interim by Ueli Dietiker, Chief Financial Officer of Swisscom. Guido Garrone,
member of the Group Executive Board and Head of Networks at Swisscom Switzerland, completed
his fixed-term secondment from Fastweb to Swisscom. Heinz Herren, former Head of Small and
Medium-Sized Enterprises at Swisscom Switzerland, took over as his successor on 1 January 2011.
Heinz Herren was succeeded by Roger Wüthrich-Hasenböhler, who has served for several years as
Head of Sales and Marketing in the Corporate Business segment. We express our thanks to all colleagues
who left Swisscom in 2010 for their outstanding contribution and wish them every success
in their new roles.