Shareholders' Letter

Financial terms
Average minutes per user (AMPU)
The average number of charge minutes per mobile user per month. This includes charge minutes
for outgoing and incoming calls, roaming traffic of Swisscom customers abroad, as well as charge
minutes for using value-added services.
Average revenue per user (ARPU)
Average mobile revenue (voice, data, SMS and MMS) generated per mobile subscriber per month.
This includes revenue from outgoing and incoming calls, monthly subscription charges, revenue
from roaming for Swisscom customers abroad, and revenue from value-added services. Traffic revenue
from M-Budget users is not included, nor is revenue generated by non-Swisscom customers
(e.g. inbound roaming).
Broadband access lines
All activated broadband connections using ADSL or VDSL technology, irrespective of the bandwidth
selected by the customer.
Customer acquisition costs
Average costs incurred for new customer acquisition during a reporting period. These comprise
subsidies for handsets sold in Swisscom’s own sales outlets, dealer commissions, subsidies for
third-party channels and advertising cost subsidies.
Customer retention costs
Average costs incurred for renewing contracts with existing customers during a reporting period.
This is made up of subsidies for handsets sold in Swisscom’s own sales outlets, dealer commissions
and subsidies for third-party channels.
Mobile customers, postpaid and prepaid
Number of active SIM cards. Postpaid systems are telephone contracts under the terms of which
charges are billed after use. Prepaid systems involve a contractual relationship without a fixed
monthly charge, whereby services are paid from a credit account that is topped up in advance.
With postpaid systems, SIM cards are used to quantify the customer base for the duration of the
contract. With prepaid systems, SIM cards are included in the customer base from their first active
use until they have not been used for twelve consecutive months (no explicit cancellation of the
contract by the customer). Internal business lines used by Swisscom are included. If a postpaid
SIM card is temporarily suspended by the customer (due to a lengthy absence) or by Swisscom
(due to payment default), it is no longer included in the customer base. SIM cards issued on the
basis of prepaid systems are suspended as soon as the balance is less than CHF 0, although the
SIM card is still included in the customer base.
Net debt
Financial liabilities less cash and cash equivalents, current financial assets and non-current money
market investments.
Further Information 232 | 233
Glossary