The High Price of Airwaves in Switzerland

State regulation loves a captive market. When Swiss telecom providers Swisscom, Sunrise, and Salt sit down in 2027 to bid for mobile frequencies, the opening tab will sit at a minimum of 854.7 million Swiss francs. Without spectrum, there are no signals, leaving the three major network operators with little choice but to pay up for the right to operate from 2029 through 2043.

The Federal Communications Commission (Comcom) insists this massive financial hurdle is not an exercise in treasury enrichment. Frequencies are a scarce public asset, the regulator argues, requiring adequate payment while aiming to foster market competition and maintain high-quality networks. Yet, setting a floor more than 200 million francs higher than the 637 million minimum established in 2012 suggests state regulators understand the exact leverage they possess.

Not all spectrum is priced equally. Comcom has tripled the baseline price for the coveted low-frequency bands at 800 and 900 MHz, repeating its aggressive stance from 2012 due to their superior reach and building penetration. Mid-tier frequencies around 1800 and 2100 MHz saw their entry price doubled, leaving only the high 2600 MHz band at the statutory minimum. Operators have already voiced their dissatisfaction with the inflated floor, though Comcom dismissed the complaints, noting its authority to adjust baseline fees whenever deemed appropriate.

To keep market leader Swisscom from using its financial leverage to squeeze rivals out of the airwaves, the regulator has once again imposed strict bidding caps. No single operator will be permitted to acquire more than 43 percent of the restricted frequency spectrum. Back in 2012, Swisscom walked away with 42 percent of the total available airwaves when final receipts reached 996.3 million francs.

Whether this latest auction will yield another windfall remains unpredictable. Providers must submit their application dossiers by December 3, 2026, ahead of the auction planned for the second quarter of 2027. Unsold bands have historically reverted to federal ownership when demand falters. For now, the state regulator has set the stage, ensuring that the privilege of keeping Swiss smartphones connected remains a distinctly expensive affair.

Written by Thorben Thiede thorben.thiede@alpineweekly.com