“…all inhabitants of Switzerland should have equal access to the
new information and communications technologies...”
– Swiss Information Society Office
Broadband in Switzerland:
Between dreams and reality
Michael.Minges@itu.int
Thousands
Market evolution
350
5.0
300
4.0
250
200
3.0
150
2.0
100
1.0
50
0
ADSL
Cable
Total
Penetration
2000
2001
Jun-02
Sep-02
4'000
38'000
42'000
0.4
40'000
120'000
160'000
1.5
95'000
190'000
285'000
3.9
133'000
200'000
333'000
4.6
0.0
Source: ITU adapted from Swisscom, Swisscable.
Swisscom launches ADSL in October 2000. By September 2000, Cablecom
reported 19’000 cable modem subscribers, with uptake accelerated after
March 2000 purchase by NTL.
Market structure
Swisscom controls entire ADSL
market
Swisscom
wholesale
46%
Bluewin
54%
“Bluewin” is Swisscom’s ISP
Cablecom dominant in cable
modem market
Others
41%
Cable
com
59%
Potential demand
Internet subscriptions, 2001
Total = 2.22 million
Cable
modem
4%
Dial-up
93%
Potential broadband demand of
around 2 million compared to just
0.3 million subscriptions (only
15% satisfied)
Households with PC
Total = 2.2 million
Internet access
No PC
39%
With
PC
61%
DSL
2%
Other
1%
Source: ITU adapted from OFCOM, Swiss Federal Statistical Office, Nielsen//NetRatings.
None
18%
Dialup
39%
Broadband
4%
Coverage
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
99.6%
95%
75.1%
42%
Households
with
telephone
Households
covered
by
ADSL
Fixed telephone
Households Households
covered
with
by cable
cable
modem
TV
Cable TV
Delay
“ADSL - The Wait is Over.”Bluewin web site, December 2002
• Delay in ADSL Service
• 17 December 2002
• The ADSL market is in full boom. Unfortunately, this
rush for ADSL connections is currently generating a
reduction in the capacity to connect ADSL lines, on
which the suppliers of Internet access do not have
any influence. All the Swiss ADSL market is largely
concerned with this situation. We regret this delay
and ask you to excuse us for this prolonged delay.
We will do our best to forward to you in the six next
weeks the inscription documents as well as the
terminals that you ordered. Your conditions of
purchase do not change because of this delay. We
thank you for your comprehension
Pricing
Most expensive and
lowest bandwidth
$60
$50
$40
$30
ADSL monthly charge,
December 2002, US$
Per month (left)
Per Mbps (right)
$100
$90
$80
1.5 Mbps
8 Mbps
/
/
256 kbps
1 Mbps
$20
$10
$0
Japan
$70
$60
768
kbps
/
128
kbps
Korea Germany
(Rep.)
512
kbps
/
256
kbps
768
kbps
/
128
kbps
512
kbps
/
128
kbps
512
kbps
/
256
kbps
512
kbps
/
128
kbps
$50
$40
$30
$20
$10
$0
UK
USA
Source: ITU adapted from operator reports, MHPT (Japan).
France SwissCable
SwissADSL
International comparison
Korea (Rep.)
HKG, China
Canada
Taiwan, China
Belgium
Denmark
Iceland
Sweden
Netherlands
USA
Japan
Singapore
Austria
Switzerland
19.8
13.5
10.7
8.2
7.1
6.6
Broadband subscribers
6.3
per 100 inhabitants
6.1
5.3
September 2002
4.9
4.7
4.7
4.6
Ranks 14th
4.6
Source: ITU adapted from national sources, Point-Topic, ECTA.
Broadband subscriptions per
100 inhabitants, 2001
Wealth & broadband
10
9
8
7
6
5
4
3
2
1
0
$15'000
Less broadband
subscriptions than
predicted by income
$20'000
$25'000
$30'000
Per capita income, PPP, US$, 2000
$35'000
Broadband policy
Theory
Reality
“Swiss policy begins with the
principle that the market will be able
perfectly to meet the needs as
regards broadband technologies in
the long run without the State
having to intervene. It will intervene
only in the event of market failure,
that it is by defining conditions in
favor of competition or targeted in
the event of the absence of private
investment. Switzerland thus does
not have an interventionist policy as
regards development of the
broadband infrastructure, but counts
on market forces.”
– OFCOM (Telecom Regulator)
• High broadband prices
• Low broadband penetration
considering income
• No local loop unbundling
• Choice of alternative
broadband operators not
widely available
• Delays in service