LTE should prove to be a very useful tool for the Swiss

Swisscom has turned on its LTE network, becoming the first provider of next-generation 4G services in the country. At launch the LTE network will be available in 26 locations and it said that it plans to cover 70 per cent of the population with LTE by the end of 2013. The network will operate at 800MHz, 1800MHz and 2600MHz frequencies.

The carrier said that the new network was necessary due to the vast increase in data used by consumers, which was doubling every 16 months. Swisscom said that at launch the compatible handset choice would be limited to the HTC One XL but that the Samsung Galaxy SIII 4G, Samsung Galaxy Note 2 4G, and Nokia Lumia 920 will follow in early December.

Compatibility for the iPhone 5 would come via a software update it said once network testing had been completed. Swisscom said it will also offer a USB based Huawei modem and a mobile wifi device from ZTE.

The carrier claimed that the network is capable of a theoretical 150Mbps at present with 300Mbps speeds coming at a later date. It plans to invest CHF1.5bn in the expansion of its network through 2016.

The operator is the leading carrier in Switzerland with over 61 per cent market share as of September 2012, according to Informa WCIS statistics.

The LTE World Summit, the premier 4G event for the telecoms industry, is taking place on the 24^th-26^th June 2013, at the Amsterdam RAI, Netherlands. Click here to download a flyer for the event.

France Telecom and TDC have agreed to combine Swiss operations Orange and Sunrise

France Telecom and Danish carrier TDC said Wednesday they have agreed to combine their Swiss operations – Orange and Sunrise – creating a new entity with fixed and mobile service offerings.

Under the deal, the French incumbent will pay €1.5bn to TDC and will become a 75 per cent shareholder in the combined entity, while TDC will hold the remaining 25 per cent.

With approximately 3.4 million mobile and 1.1 million fixed and broadband customers, the combined entity will account for around 38 per cent of the mobile telephony market and 13 per cent of the fixed market.

The merger is expected to generate synergies of €2.1bn, with estimated Opex reductions from network and IT, distribution, marketing and workforce optimisation, expected to reach an annual run-rate of €132m, with cumulative integration costs estimated at €92m. Capex synergies of €376m are expected between 2010 and 2015 with run-rate Capex savings of €43m per year from 2015.

TDC will have the right to sell its stake to third parties from the second year or launch an IPO from the third year. In connection with the exit routes France Telecom will pay €100m per year to TDC in each of 2012, 2013 and 2014.

Gervais Pellissier, France Telecom deputy CEO and CFO, said: “Following the UK joint venture between Orange and T-Mobile, France Telecom completes another major in-market consolidation, consistent with its M&A policy.”

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