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Authors: Daniel Peter (Hochschule fur Wirstchaft und Verwaltung)
Published in: 2003

Abstract

For diAx as well as for the Swiss telecommunications industry, the years 2000 and 2001 were filled with new strategic challenges. Within the strategic decisions, the main event was the upcoming auction of Universal Mobile Telecommunications System (UMTS) licences as well as further GSM (Global System for Mobile Communications) licences in Switzerland by the Federal Communications Commission. To Sunrise CEO Kim Frimer, two basic trends existed within the telecommunications industry: ''The first one is a global trend. Life is getting tough for telecom operators. All overwhelming expectations put into new technology such as dotcoms and UMTS has come back to a realistic level. The result was, a lot of the venture capital has dried out now. Nowadays telecom operators are focusing on making profit, on making cash and on liquidity. [...] Switzerland is lagging behind the EU in some areas. This does not concern connection terms but the ''last mile'' issue, ADSL and the price offering of Swisscom. This combined with a general economic downwards trend and the breakdown of Swissair, there is a general opinion in Switzerland to protect Swisscom. At the moment the political agenda is that nobody wants to harm Swisscom which in the end affects Sunrise as the strongest competitor''.
Location:
Industry:
Size:
Multinational
Other setting(s):
2001-2002

About

Abstract

For diAx as well as for the Swiss telecommunications industry, the years 2000 and 2001 were filled with new strategic challenges. Within the strategic decisions, the main event was the upcoming auction of Universal Mobile Telecommunications System (UMTS) licences as well as further GSM (Global System for Mobile Communications) licences in Switzerland by the Federal Communications Commission. To Sunrise CEO Kim Frimer, two basic trends existed within the telecommunications industry: ''The first one is a global trend. Life is getting tough for telecom operators. All overwhelming expectations put into new technology such as dotcoms and UMTS has come back to a realistic level. The result was, a lot of the venture capital has dried out now. Nowadays telecom operators are focusing on making profit, on making cash and on liquidity. [...] Switzerland is lagging behind the EU in some areas. This does not concern connection terms but the ''last mile'' issue, ADSL and the price offering of Swisscom. This combined with a general economic downwards trend and the breakdown of Swissair, there is a general opinion in Switzerland to protect Swisscom. At the moment the political agenda is that nobody wants to harm Swisscom which in the end affects Sunrise as the strongest competitor''.

Settings

Location:
Industry:
Size:
Multinational
Other setting(s):
2001-2002

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