Swisscom declares $1.3 billion loss from Fastweb

Swisscom declares $1.3 billion loss from investment in Italian broadband provider Fastweb

Associated Press

GENEVA (AP) -- Swisscom AG says it is booking a loss of 1.2 billion Swiss francs ($1.27 billion) on its investment in Italian broadband provider Fastweb.

The Swiss telecoms giant says the economic crisis in Italy and a review of Fastweb's business plan prompted the write-down.

Swisscom said in a statement Wednesday that Fastweb's revenue has been hit by intense price competition in the market for private broadband customers.

In its home market of Switzerland, the Bern-based company has benefited from its status as a quasi-monopoly to charge far higher prices for broadband and mobile services than are found in neighboring countries.

Swisscom shares were down 0.2 percent at 344.50 francs on the Zurich exchange.

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