Olivier Aeschlimann, Senior Financial Analyst
According to Connect (a specialised magazine), Swisscom has the best mobile telecommunication network in Switzerland. The company ranks ahead of Sunrise, both getting an excellent score. However, this operational excellence does not translate into stock market performance. While the SPI index rose by more than 27% year to date (3rd December 2019), Swisscom shares appreciated by only 13.8% and Sunrise shares lost -5.6% (total return). Indeed, the three main players, Swisscom, Sunrise and Salt, still face deflationary pressures. Swisscom struggles to counter its competitors promotions, while Sunrise, after its aborted merger with UPC, doesn’t have a fixed network. This bleak environment should prevail in the foreseeable future and as a consequence, stock market performances of the sector should stay uninspiring.