Swisscom AG
SWX-SCMN
Company Overview
Swisscom AG provides telecommunication services primarily in Switzerland, Italy, and internationally. It operates through three segments: Swisscom Switzerland, Fastweb, and Other Operating. The company offers mobile and fixed-network services, such as telephony, broadband, TV, and mobile offerings, as well as sells terminal equipment; and telecom and communications solutions for large corporations and small and medium-sized enterprises. It also provides cloud, outsourcing, workplace, mobile phone, networking, business process optimization, SAP, and security and authentication solutions, as well as a range of services to the banking industry; Internet of Things solutions; digitization services to the healthcare sector; IT systems for health insurance companies; fixed-line and mobile networks by other telecommunication service providers; and roaming to foreign operators whose customers use its mobile networks, as well as broadband services and regulated products. In addition, the company plans, operates, and maintains network infrastructure and IT systems; provides support functions to finance, human resource, and strategy, as well as management of real estate and vehicle fleet; and offers broadband and mobile services, such as telephony, mobile offerings, and broadband services, as well as ICT solutions for residential, business, and wholesale customers. Further, it provides IT and network services; online and telephone directories; and cross-platform retail media and security communication services, as well as builds and maintains wired and wireless networks. The company was founded in 1852 and is based in Bern, Switzerland.
Name
Swisscom AG
CEO
Christoph Aeschlimann
Website
www.swisscom.ch
Sector
Diversified Telecommunication Services
Year Founded
1998
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Bulls Say
The Swiss regulatory environment has been supportive of Swisscom for decades. The firm is not obliged to give competitors access to its fiber network. Regulators have never forced the entrance of new mobile operators into the market.
Swisscom has a good track record of dividend payments. Since 1998 dividends have grown or remained stable every year. Since 2011 Swisscom has paid a stable CHF 22 per share annual cash dividend
Switzerland is one the wealthiest economies in Europe, with high GDP per capita, and the most politically stable. This makes customers less price-sensitive.
Bears Say
Xavier Niel owns Salt Mobile and also controls Iliad. Iliad is known for having disrupted several telecom markets, including France and Italy.
Revenue pressures will likely continue in the enterprise division over the long term, which will be a strain for Swisscom’s top line.
Swisscom has made a big foray into Italy, which is Europe's toughest telecommunication market and we believe it will destroy shareholder value in the long term.