Swisscom to extend roadworks for fibre-optic network expansion

A longstanding dispute between Swisscom and the Federal Competition Commission, ongoing since late 2020, centres on the telecom giant's fibre-optic expansion. KEYSTONE/© KEYSTONE / GEORGIOS KEFALAS

In response to pressure from the Swiss Federal Competition Commission regarding its fibre-optic network construction, Swisscom announces plans to extend roadworks by an additional 3,200 kilometres. Swiss Federal Competition Commission, launched an investigation into the construction of this network in 2020.

Thomas Stemmler, Head of Regulation and Policy at Swisscom, confirmed the decision in a statement to SonntagsZeitung, as reported by the Keystone-SDA news agency on Sunday. Stemmler explains that the fibre optic architecture, favoured by the Federal Competition Commission, necessitates additional cables that cannot be accommodated within existing underground pipes.

+Swisscom finalises takeover of Vodafone Italy

Stemmler highlights the extensive roadwork required across Switzerland to lay thicker pipes, stating, “That’s why the roads have to be opened up and thicker pipes laid in many places throughout Switzerland.” When asked, Swisscom media spokesperson Alicia Richon said that she could not say how many kilometres of road Swisscom had already opened up in the course of the fibre optic construction.

The cost of these additional roadworks, estimated by experts at CHF2 billion, was not confirmed by the media spokesperson. Despite requests for financial details, the spokesperson maintained, “We are not providing any figures.”

+Eight ground-breaking Swiss inventions of 2023

Swisscom fibre-optic expansion under scrutiny since 2020

A longstanding dispute between Swisscom and the Federal Competition Commission, ongoing since late 2020, centres on the telecom giant’s fibre-optic expansion. The commission, currently investigating Swisscom’s network architecture, deems it anti-competitive due to its reliance on a single supply line from the telephone exchange to the street manhole.

Insisting on a one-line-per-household expansion, the competition commission aims to foster a competitive market wherein Swisscom’s rivals can offer bespoke internet services, including higher surfing speeds. Swisscom, responding to regulatory pressure, revised its plans in October 2022. However, the impasse led to the postponement of numerous connections, leaving hundreds of thousands awaiting activation. Consequently, Swisscom resumed constructing direct lines from the telephone exchange to households to comply with regulatory demands.

+Innovating fairly: Switzerland’s lessons for Silicon Valley

According to Swisscom media spokesperson Richon, the expansion, mandated by the Competition Commission since autumn 2022, necessitates significant roadworks, as unveiled on Sunday.

Federal intervention

The Swisscom-Federal Competition Commission feud has attracted parliamentary attention in Bern. In February, the Federal Council acknowledged delays in the fibre-optic expansion, expressing regret. However, there was no indication in the Council’s response to an interpellation that the competition commission had overstepped its mandate in its proceedings against Swisscom.

Adapted from German by DeepL/amva

Get the most important news from Switzerland in your inbox – click here to subscribe

How we work

This news story has been written and carefully fact-checked by an external editorial team. At SWI swissinfo.ch we select the most relevant news for an international audience and use automatic translation tools such as DeepL to translate it into English. Providing you with automatically translated news gives us the time to write more in-depth articles.

If you want to know more about how we work, have a look here, and if you have feedback on this news story please write to [e-mail].