SiL and Swisscom join forces on fibre-optic network in Lausanne. Press conference, Lausanne, 4 July 2012

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1 SiL and Swisscom join forces on fibre-optic network in Lausanne Press conference, Lausanne, 4 July 2012

2 Fibre to the Home (FTTH) 2 Fibre-optic cable is significantly more effective than copper- and coaxbased technologies and demand for bandwidth will continue to increase in future. About 90% of Switzerland is already connected by fibre-optic cabling, right down to individual districts. With Fiber to the Home (FTTH), fibre-optic cabling is laid directly from the exchange to building basements, and from there to apartments and commercial premises. FTTH supports bandwidths exceeding 1 Gbit/s.

3 Extremely rapid development 3 Our telecommunication networks are in the process of becoming the vital nerve fibres of modern information society. The amount of data traffic carried by these networks is doubling every 21 months. New applications are helping to increase demand for bandwidth. Multi-device: more and more peripheral devices are being hooked up to the same connection.

4 Future bandwidth demand 4 Ever greater bandwidth is enabling the development of new services. 100 Mbit/s Future applications 50 Mbit/s 20 Mbit/s 10 Mbit/s 1 Mbit/s Multi-room HDTV Web TV HDTV Web 1.0 Web Super HDTV

5 Swisscom's FTTH activities 5 Construction without a partner Cooperation Cooperation agreement signed Geneva Schaffhausen Riehen Weinfelden Basel Pratteln Pfyn Winterthur St. Gallen Zurich Dietlikon Solothurn Uster Herisau Teufen Adliswil Küsnacht Biel Derendingen Zug Erlenbach Berne Ebikon Herrliberg Lucerne Köniz Meilen Yverdon Freiburg Thun Coire Thusis Gland Nyon Lausanne Sion Upper Valais Lugano March 2012: approx. 388,000 homes and commercial properties Objective for 2015: a third of the Swiss population Investment between now and 2015: about CHF 2 billion Bellinzona (July 2012)

6 The agreement 6 SiL and Swisscom have agreed to sign a contract on the construction of a joint fibre-optic network running all the way to residential homes and commercial properties. This will be the very first cooperation agreement on FTTH signed by a major cable operator and Swisscom, confirming that fibre-optic cabling is indeed the technology of the future for all of us. Work to develop the necessary infrastructure is already well underway, and all inhabitants will soon be able to benefit from super-high-speed web and multimedia services, putting Lausanne among the elite group of Switzerland's best-equipped cities. A cooperation model was selected similar to the ones put into place in other Swiss cities (e.g. Basel, Berne, Lucerne, Geneva, St. Gallen and Zurich).

7 The cornerstones of the cooperation 7 Between now and 2017, some 82,000 homes and commercial premises will be connected to the fibre-optic network. Implementation will be split into four blue zones (Swisscom) and four green zones (SiL). The partners grant each other indefeasible right of use (IRU) of the laid fibre-optic cables, and moreover for a very long period. Each partner will be responsible for 50% of the investment costs. The agreement contains no provisions that may be subject to an objection by the competition commission (Comco). Fibre-optic services have already been available since May Responsibility Swisscom SiL

8 The benefits of cooperation 8 The existing infrastructure benefits both partners. It avoids parallel development of two fibre-optic networks. Having two partners will cut both the cost of construction and the length of time the work takes. The multi-fibre cooperation model not only ensures cooperation during implementation, but also maintains healthy competition between the two partners on services. The network is also open to other service providers and at every level. Cooperation on the construction of the infrastructure, but competition on services

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