General conditions and market environment
Swisscom operates in a very dynamic environment. Megatrends such as demographic change, a sharper focus on health-related topics and the growing importance of sustainability are indelibly shaping and altering Swiss society and the economy and have a long-term impact on the activities of Swisscom as a result. By the same token, the expansion of ultra-fast broadband, the increasing penetration of cloud computing and the advancements made in the field of artificial intelligence are short- to medium-term trends that impact Swisscom’s business. Digitisation is being accelerated even further by the global Covid-19 pandemic as it penetrates more and more into all spheres of life. Customer behaviour has also undergone a lasting change, as indicated by, among other things, the increased use of online channels for shopping and making contact as well as the rise of contactless payment. The pandemic has caused the importance of high-performance networks to grow and expectations regarding the stability and availability of the network infrastructure will continue to rise as a result.
Digitisation is leading to new, rapidly developing business models. Swisscom’s core business is characterised by fierce competition with strong price pressure. The overall market for connectivity services continues to shrink in Switzerland and Italy. Global Internet companies are using their economies of scale and forcing themselves into local ICT markets for both residential and business customers.