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.