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Swisscom withdraws from satellite market

Switzerland's largest telecommunications operator, Swisscom, has announced it is to pull out of the satellite communication business, with the loss of 41 jobs.

This content was published on March 28, 2000

Switzerland's largest telecommunications operator, Swisscom, has announced it is to pull out of the satellite communication business, with the loss of 41 jobs.

Swisscom cites rapid changes in telecommunications technology and markets for abandoning satellite communication at the end of 2001 via its own ground stations at Leuk (pictured), Zurich, Basel and Geneva.

"International telecom services can today be provided more economically using other media or through buying services from other companies," a statement said.

The move is expected to result in cost savings of SFr100 million over the next ten years, with the ground stations being sold or dismantled. Swisscom's customer services will not be affected.

"Today it is much more cost-effective to handle international and intercontinental traffic via alternative media such as undersea cable or by buying services from other providers," Swisscom said.

It said fibre-optic cable today enabled huge amounts of data to be transmitted in short periods of time and at reduced cost. The large distances covered via satellite communication, on the other hand, resulted in communication delays, which had a negative effect on phone conversation, for example.

A severance deal is to be worked out for the 41 employees affected.




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