, Swisscom, Sunrise and Salt face national competition
Quickline wants to switch from a national network to a national provider. How does the company want to position itself in terms of price?
New impetus in the Swiss telecommunications market: As this editorial team has observed, the national provider Quickline plans national coverage with Internet, mobile telephony, television and fixed networks. The association confirmed the plan on Thursday morning. This makes Quickline the fourth national network operator along with Swisscom, Sunrise and Salt.
In an interview, Quickline boss Friedrich Goetschmann called the move “logical” given the company’s history. The merger took place 25 years ago from local network operators who organized themselves.
Over the years, the company, based in Niedau in Bern, developed into a regional and then national association, with a focus on Mittelland, Central Switzerland and Wallace. Quickline is present in Glatfelden, in the canton of Zurich. Promotion in the league of national suppliers is therefore a good way to further develop the offer.
And another point plays a role: customers who have left the Quickline network area often compete in their new place of residence. According to Goetschmann, moving away should no longer be grounds for dismissal.
When it comes to Internet subscriptions, Quickline has a 4% market share, which is worth nothing. Last year, the total turnover amounted to 245 million francs.
Quickline currently connects around 400,000 households with its 22 network partners. Thanks to its new national reach, Quickline now reaches 3.7 million households in Switzerland. The provider mainly focuses on 2.4 million households in German-speaking Switzerland. If it succeeds, it will be multiplied by six compared to the current market segment.
However, to achieve this, it is not possible without the cooperation of the competition. In terms of fixed networks, Quickline cooperates with the market leader Swisscom. There is already a partnership with Sunrise for the mobile network.
Swisscom is known in the industry for its aggressive business practices, for which the public company is increasingly being sued. Goetschmann first emphasizes the interest of working together: “All of Switzerland is covered by a single contract; Multiple contracts with different partners are not necessary.”
But the boss of Quickline also specifies that he has options for national access to certain networks. For example Swiss Fiber Net (SFN), a fiber optic network of power companies.
A new competitor in the market usually means competition is increasing and prices are decreasing. But Goetschmann dashed hopes here. “We will not become a low-cost supplier, but we will establish ourselves as a quality supplier with an attractive price-performance ratio.”
Quickline revamps the existing product portfolio and now offers pure Internet access. The introductory offer costs 49 francs per month for speeds of 100 megabits per second. For comparison: Swisscom offers its subscription with the same bandwidth for CHF 65 per month.
Oliver Zadori of the comparison portal JungleCompass.ch believes that Quickline offers are more attractive in terms of price than the larger competitors. However, he noted that other national competitor brands offer cheaper subscriptions than QuickLine. These include Yellow from Sunrise and Wingo from Swisscom.
Quickline boss Goetschmann remains tight-lipped on growth targets, such as target number of new customers or target market share. All they have to say is that no specific orders came from network partners.
However, he does not hide that Quickline is open to development and strategic partnerships at the national level. On the one hand, these may be newcomers to the network itself. On the other hand, Quickline also sees itself as a partner for telecommunications service providers outside the industry. Goetschmann mentions Aldi several times in a conversation as an example.
The project is a response to a constantly changing market characterized by fierce competition even among the smallest suppliers. Sunrise announced in early September the acquisition of the telecommunications division of the cooperative Electra Baseland (EBL). If Goetschmann has his way, Quickline would also be an option as a buyer in such an acquisition.
John Mettler Since 2018, he has been a business editor in the central editorial office of Tamedia. He reports on telecommunications, digitization, tourism and the watch industry. He has won numerous journalism awards, including the Secondary Media Award from the Swiss Bar Association, the European Newspaper Award and the Immaculate Media Award.More information@jonmettler