Swiss mobile telephony: Comcom excludes new providers (cross-border guide)

Panoramic view of Lugano, economic hub of southern Switzerland, representing Swiss telecom market

The Swiss Federal Communications Commission states: Economic and regulatory barriers make it virtually impossible for new competitors to enter the mobile phone market.

Context

In brief

  • Comcom excludes new entrants: insurmountable economic and regulatory hurdles
  • Minimum cost: CHF 500 million to build your own network
  • Three current operators (Swisscom, Salt, Sunrise) will remain dominant
  • By 2033: Starlink should also build terrestrial networks in Switzerland

Key Facts

  • What: Comcom declares it impossible for new competitors to enter mobile telephony
  • When: Statements by President Martin Bürki on Tuesday on the sidelines of the press conference
  • Where: Switzerland, national mobile market
  • Who: Federal Communications Commission (Comcom); current providers: Swisscom, Salt, Sunrise
  • Minimum amount: CHF 500 million to build own network
  • Deadline: 2033 to reach coverage of 50% of the population

The Swiss Federal Communications Commission (Comcom) does not foresee the entry of new players into the mobile phone market. President Martin Bürki confirmed on Tuesday, on the sidelines of a press conference in Bern in talks with the AWP news agency, that the economic and regulatory obstacles are simply too high for any competitor.

The construction of its own mobile network would cost, according to a rough estimate, at least half a billion Swiss francs. To this figure must be added the costs of setting up a sales and management organization in Switzerland. The difficulties do not end there: the new entrant would have to meet the minimum coverage requirement of 50% of the population.

Regulatory and geographical walls that stop new entrants

Finding suitable spaces to install antennas is a second almost insurmountable obstacle. In Swiss cities, it is already very difficult to locate new antenna sites. In addition, there are restrictions imposed by the Federal Radiation Protection Regulation (NISV), which further limit the possible placement of infrastructure.

Operational details

How Comcom balances competition between three operators

Comcom, however, does not want a completely closed market. President Bürki said he wanted to maintain "three strong players in the market, which ultimately guarantee a good customer experience." The goal is to maintain functional competition between the three incumbents, avoiding scenarios in which one is the clear winner and one is the clear loser.

To achieve this balance, Comcom has introduced bidding constraints in the upcoming mobile frequency auction. According to Bürki, "we have tried to eliminate this risk."

Spectrum limits: the new regulatory strategy

Bidding restrictions have been significantly tightened compared to the past. A single operator can purchase a maximum of 230 megahertz (MHz) of spectrum, which corresponds to around 43% of all available frequencies. In the previous auction in 2012, the upper limit was 270 MHz, or 50% of the total spectrum.

In addition to the general limit, Comcom has introduced specific restrictions for each frequency band, a measure that was absent from the 2012 auction:

  • Low band (800–900 MHz): a single bidder can be awarded a maximum of 38% of the available frequencies
  • Mid-band (1800–2100 MHz): the upper limit is set at two-thirds of the spectrum of that band
  • High-band (2600 MHz FDD): the limit rises to 71% of the available frequencies

These constraints aim to distribute the spectrum in a more balanced way among the three operators, preventing one of them from accumulating excessive market power. The regulatory model reflects a conscious choice by Comcom: to accept a stable oligopoly of three strong operators rather than risk a competitive war that could damage the national infrastructure.

Key points

What these barriers mean for those living in Switzerland

The closure of the market to new competitors has direct implications for Swiss residents and employees. On the one hand, they will not see the emergence of alternative operators that could offer more aggressive tariffs or innovative services. On the other hand, Comcom aims to prevent excessive power concentrations that would marginalize some operators, thus ensuring a choice between three stable and reliable providers.

Those who want to switch mobile providers in the coming years will choose between Swisscom, Salt and Sunrise, based on price, geographical coverage, mobile internet speed and quality of customer service. No new global competitors will emerge to disturb this balance in the medium term.

Deadline 2033: Comcom's benchmark

The deadline by 2033 to reach 50% population coverage is a key milestone in Comcom's strategy. This is the benchmark that the committee will use to assess whether a hypothetical new entrant can legally operate in Switzerland. So far, no entity has expressed any intention to present itself as a new candidate for the next frequency auctions.

How to monitor Comcom's decisions

If you wish to follow the development of the Swiss mobile market, you can consult Comcom's public documents on the official federal website. Spectrum auctions are public procedures: the results, winners and frequencies awarded are officially announced. Comcom will continue to monitor whether the three operators are meeting their territorial coverage and infrastructure investment commitments. Consumers who find mobile phone prices excessive can report their concerns to Comcom, which has regulatory tools to intervene in the event of anti-competitive behaviour.

Frequently Asked Questions
Why does Comcom not allow new operators to enter the mobile phone market?
Comcom has assessed that the economic and regulatory obstacles are insurmountable. Building a network of its own would cost at least CHF 500 million, and the new entrant is expected to reach a minimum coverage of 50% of the population by 2033. In addition, finding suitable spaces for antennas is very difficult in Swiss cities, and restrictions of the NISV regulation on radiation protection apply. Satellite operators like Starlink should also build their own terrestrial infrastructure.
How many mobile providers are there currently in Switzerland?
Three major operators dominate the Swiss mobile phone market: Swisscom, salt and Sunrise. According to Comcom, these three operators will remain the only significant players in the market at least until the next frequency auction and beyond, as the barriers for new entrants are practically insurmountable.
What are the new spectrum limits introduced by Comcom for the auction?
A single operator can buy a maximum of 230 MHz of spectrum (about 43% of the total), compared to 50% of the 2012 auction. Specific limits apply for each frequency band: 38% in the low band 800–900 MHz, two thirds in the medium band 1800–2100 MHz and 71% in the high band 2600 MHz FDD. These constraints prevent one of the three operators from buying too much market power.
Could Starlink operate in Switzerland as a mobile operator?
According to Comcom, Starlink should still build its own terrestrial antenna network covering at least 50% of the Swiss population by 2033. An exclusively satellite coverage would not be enough: it would only affect limited areas and cause interference in border regions. The auctioned frequencies are not intended for satellite communication.
Will mobile phone prices in Switzerland fall without new providers?
Not automatically. However, Comcom carefully regulates competition between the three existing operators through constraints on spectrum auctions and post-auction monitoring. The commission aims to maintain three strong players in the market that ensure a good customer experience. Consumers who experience excessive prices can report concerns to Comcom.

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