The total net profits after taxes did amount to 1. Unlike many other services industries, the Telecommunications industry has a high degree of global standardisation in the way they describe their services, the way they provision their services and the way they market, sell and bill those services. However, if the level of demand for ADSL services is lower than expected, or if Swisscom was forced to significantly reduce its access tariffs for ADSL services due to strong competition, the revenues and profitability of its Fixnet business would be affected negatively. In this paper, we will enlighten the opportunity for growth through an investment into IT Services and check that opportunity gap and try to quantify it. As a result of the overall trend to commoditisation of the offered products and an increase of competition in a saturated market, Swisscom is undergoing severe cost cutting exercises in the fixline and mobile area, which have shown already some fruits, as the results impressively demonstrate. Having deep cash pockets but no signs of domestic growth in the existing business, Swisscom is put onto Crossroads. Abbildung in dieser Leseprobe nicht enthalten Picture 3 – The organisation chart of the Swisscom Group.
The key developments shaping operator strategy in this dynamic market situation – and that we believe apply to Swisscom – the leader and incumbent player in the small Swiss market – are as follows: In this Thesis we will look at the performance gap Swisscom has and will quantify this statement of the shortfall between current business results and those that should be expected. Once the Telco Services providers mostly fought with each other on clearly defined market segments – fixline and mobile and data traffic services, now these services do intermix and merge and on top of that, value added resellers and bundlers do package those services into several packages. Strong revenue decreases happened in the large account sales segment Enterprise Solutions Segment already indicate a first sign of erosion of the enterprise market – be it to competition or to new technologies. Swisscom does not manufacture goods or products, it is providing – mass commodity – basic services in the area of Fixline, Wireless and IT Services.
This has led to two global effects:.
UZH – Department of Informatics – Communication Systems Group – Swisscom inovation award !
However, again according to BNP Paribas, “this should not translate into strong margin pressure, as all operators focus on profitability masteg Swisscom puts quality subscriber growth before market share gains at any price”.
Mobile revenues also remained flat due to price erosion and despite the introduction of Vodafone-Live.
This convergence will take several forms. The company tries to offer a portfolio of related services and essentially by focusing on some core capabilities – such as delivering services to a broad user range – generate more rent than others see Grant. The mobile phone appears to have such a strong loyalty as a personal device amongst consumers that it probably will be the focus of such convergence, especially in the enterprise space.
Now Swisscom investors – public funds and the Swiss Eidgenossenschaft – are being used to Swisscom as thesix cash cow paper tesis is generating growing profits. In the enterprise market, companies are already looking for converged voice and data services as the norm. Competition for business customers is particularly intense, as Orange and TDC have been increasing their efforts to win market share in this segment. Here, it shows that some suppliers to the ICT IT and Telecommunications market are also players in the IT Services side – thus vertical integration does happen here to some extent and to some market segments – mainly in the larger account space.
The central problem in Swisscom is lastly twofold: The mandate of the main stock owners thess to steadily increase profits. The IT Supplier side – a different set of players – mainly IBM, HP, Sun, Microsoft and Oracle is competing fiercly, yet the margin pressures here are still lower due to a higher overall innovation yield.
Picture 22 – It is important to understand that Switzerland even though it is so small is divided into cultural zones. Swisscom has grouped itself to a large extent around yhesis, notably also to off-spring the mobile arm and to get hold of the thedis processes. As a result, Swisscom IT Services undertook a major consolidation exercise and a reorganisation. In the mobile space, the effect is a dramatic slowing in the rate of growth of voice revenues.
Abbildung in dieser Leseprobe nicht enthalten Picture 3 – The organisation chart of the Swisscom Group. Driving towards the future with the next generation of swksscom based on IP networks, value- added consumer and business services over broadband, ascending the ICT value chain, and creating and establishing strong presence in desktop and network outsourcing, deploying VoIP solutions that are tightly integrated with business applications, and enhancing overall profitability with ICT.
Switzerland is – depending on how it is counted – always among the top 20 wealthiest economies per inhabitant, despite its – Geographical Layout: As a result, Switzerland has one of the most advanced Telecommunications and IT Services systems which are prone to increasing competition. In this Thesis swiescom will look at the performance gap Swisscom has and will quantify this statement of the shortfall between current business results and those that should be expected.
The Macro Environment at Swisscom – leaned onto Grant 2 – and to the Swiss telecommunications market is determined by the following settings:. This mastre affects Swisscom. Picture 16 thesjs The application landscape of Swisscom Fixnet, provided mainly by Swisscom IT Services cannot be depicted any other than evolutionary.
Swisscom IT Services
Christoph von Gamm Author. Moreover, with strong competition and the high rate of mobile penetration in Mater, customer retention costs have increased substantially, which is putting additional pressure on margins. Sign in to write a comment. This shows evidence of the first erosion of the traditional voice revenues.
Its foreign Subsidy Debitel has been sold to the investor Premira soon, yet Swisscom took an extra goodwill depreciation of ca. Smaller IT Services activities – we will look at the IT Services chain later – are still open and well in competition.
At the thesia time, Swisscom did release 6,2 percent of its personnel to now 19, people.
Consulting and Integration hence tends to be highly specialised and lives from key individuals. The Swiss Telecommunications Market is segmented into the following players Picture 2 3: Unlike many other services industries, the Telecommunications industry has a high degree of global standardisation in the way they describe their services, the way they provision their services and the way they market, sell and bill those services. ERP Horizontal packages 5. Picture 3 – The organisation chart of the Swisscom Group.