Swisscom Preps FTTH Joint Venture

BERN, Switzerland -- Swisscom has decided to enter into a joint venture with the canton of Fribourg and the west Switzerland-based electricity producer and distributor Groupe E. The aim of this venture is to quickly and cost-effectively ensure connection to the fibre-optic network throughout the canton. Swisscom will bear 60% of the necessary investment costs, and the other partners 40%. The contract was submitted to the Competition Commission, which now wishes to examine it in more detail, in autumn 2010. The Competition Commission is expected to reach its decision on the matter by May 2011.

In a move to extend the fibre-optic network throughout the canton of Fribourg, Swisscom, the canton of Fribourg, Groupe E and a number of other partners have decided t! o enter into a joint venture, with Swisscom bearing 60% of the necessary investment costs, and the other partners 40%. The joint venture will be in charge of planning and awarding construction, maintenance and operating contracts for the new fibre-optic network, which will extend as far as households. The partners are thereby implementing a shared declaration of intent signed approximately 18 months ago with a view to extending the fibre-optic network throughout the canton of Fribourg.

In autumn 2010, the parties involved in the joint venture submitted the contract to the Competition Commission for examination. The Commission now wishes to study the venture in greater detail. The joint extension work is expected to start in mid-2011. The intention is to lay four fibres in each area of use (flat, house or commercial premises), which will guarantee effective competition and non-discriminatory access to the fibre-optic network by other operators. This offer corresponds fully to the conclusions reached by Ofcom and the Competition Commission during their round-table discussion.

Swisscom AG (NYSE: SCM)