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Multi-play offers drive broadband Internet growth in Switzerland

Quarterly Broadband Monitoring
Published: 2014-05-27

Switzerland recorded more than 3.4m fixed broadband subscribers (i.e. xDSL, cable modem and fibre optic) in 4Q13 – a 6% YoY increase, primarily driven by the growing demand for high speed Internet connection linked with the upsurge in multi-play offers. Among the countries covered in Western Europe, Switzerland has one of the highest penetration rates per household, ending the year at 97%, a 6 p.p. YoY rise.

Despite a growth slowdown, xDSL is still the dominant technology with almost 2.3m subscriptions while cable modem and fibre optic followed with 13% and 10% YoY increase, respectively. In general, this slowdown in the xDSL growth is due to customers shifting to faster broadband platforms, which are currently heavily marketed by operators in bundles. Both Swisscom and UPC claim the success of this strategy. Swisscom exhibited about a 6% YoY improvement on the total number of fixed broadband subscriptions despite a huge drop in single-play (-14% YoY), explaining this through subscribers migrating to multi-play packages (+ 27% in 4Q13 YoY ). Among the offers, the quadruple-play package (fixed line + Internet + TV + mobile) is the most popular, with the largest jump in subscription, almost 50% YoY. This offer is marketed under the Tutto Benefit brand, a combination of Swisscom’s other packages (Vivo Casa and NATEL Infinity).

The same trend can me detected by UPC Cablecom. The carrier continues to post rising Internet subscribers, around 12% YoY, claimimg the popularity of its 3-in-1 bundles, especially Horizon.

Published: 2014-05-27

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