Menu

8 Provisions and contingent liabilities

Provisions

Provisions changed as follows in the first nine months of 2022:


In CHF million
  Dismantlement
and restoration
costs
  Regulatory and
competition law
proceedings
 
Termination
benefits
 

Others
 

Total
Balance at 1 January 2022   712   176   55   206   1,149
Additions to provisions     85     24   109
Present-value adjustments   2   9       11
Adjustments recognised under property, plant and equipment   (58)         (58)
Release of unused provisions       (3)   (4)   (7)
Use of provisions   (17)   (72)   (13)   (27)   (129)
Foreign currency translation adjustments         (2)   (2)
Balance at 30 September 2022   639   198   39   197   1,073
Thereof current provisions       34   71   105
Thereof non-current provisions   639   198   5   126   968

In accordance with the revised Telecommunications Act, Swisscom provides access services (incl. interconnection) to other telecommunications service providers in Switzerland. In previous years, several telecommunications service providers demanded ComCom reduce the prices charged to them by Swisscom. The procedures for setting access prices for 2013 onwards are still pending before ComCom. In addition, an appeal is pending before the Federal Administrative Court in connection with the interest on recovery claims from access-related proceedings, which should be based on the weighted average cost of capital (WACC).

The Competition Commission (COMCO) has opened various investigations against Swisscom in the past. In April 2013, COMCO opened an investigation against Swisscom under the Federal Cartel Act concerning the broadcasting of sporting events on pay TV. In May 2016, COMCO imposed a penalty of CHF 72 million on Swisscom in these proceedings. Swisscom appealed against this ruling before the Federal Administrative Court. In June 2022, the Federal Administrative Court largely confirmed COMCO’s ruling and ordered Swisscom to pay a fine of CHF 72 million. The fine was paid by Swisscom in the third quarter of 2022. Swisscom has lodged an appeal against the decision of the Federal Administrative Court with the Federal Court. Also pending are the appeals to the Federal Court against COMCO’s rulings in connection with the invitation to tender for a corporate network for Swiss Post and the precautionary measures concerning Swisscom’s fibre-optic expansion. In the event of a legally binding finding of abuse of a market-dominant position, claims could be asserted against Swisscom under civil law.

In the past, Swisscom recognised provisions for regulatory and antitrust proceedings on the basis of legal assessments. As a result of the reassessment of these proceedings, provisions of CHF 85 million were made in the first nine months of 2022 and present-value adjustments of CHF 9 million were recorded. Any payments to be made will depend upon the date on which legally binding decrees and decisions are issued, and could probably occur within five years.