Swisscom Cuts Rates

BERN, Switzerland -- As of 1 September 2006, Swisscom Fixnet call rates from the fixed network to the Orange mobile network will be reduced from CHF 0.55 to CHF 0.49 and from CHF 0.45 to CHF 0.39 per minute respectively. This reduction also applies for calls to the mobile network of Coop-Mobile, which operates via the Orange mobile network. With this move, Swisscom Fixnet is passing on the Orange reduction in termination charges to its customers.

The termination charge is the fee that other telecommunications providers such as Swisscom Fixnet have to pay for putting through calls that terminate on a mobile network. Back in October 2005, Swisscom Fixnet lowered its charges for calls from the Swisscom Fixnet fixed network to Sunrise. Now that Orange has reduced its termination charges by a similar amount to Sunrise, Swisscom Fixnet is reducing the price of calls from the fixed network to the Orange and Coop-Mobile network to CHF 0.49 (from CHF 0.55) per minute standard rate and CHF 0.39 (from CHF 0.45) off-peak rate. The standard rate applies from Monday to Friday from 7 a.m. to 7 p.m., while the off-peak rate applies from Monday to Friday from 7 p.m. to 7 a.m. as well as at weekends and on general public holidays.

Swisscom Fixnet is not making any adjustment to prices for calls to the mobile network of Tele2, as their termination charges remain high.

Swisscom AG (NYSE: SCM)