Switzerland's telecommunications regulator ordered Swisscom to start "unbundling" its local loop so that rivals have direct access to customers. The decision, a further step towards opening the Swiss telecoms market to competition, will be implemented in several steps and comes just ahead of the start of Switzerland's 3G mobile telephone auction next Monday. The ruling affects the "last mile" connections to retail customers, an area in which state-controled Swisscom enjoys its last monopoly in an increasing liberalised telecoms market. A source familiar with the company's thinking said Swisscom intends "to take this to the highest level", adding it "won't go without a fight". The action is expected to weigh on Swisscom's earnings from fixed-line business, which have already been eroded by tougher competition in today’s liberalised telecoms market. As a first step, Swisscom must open part of the "last-mile" connection to rival diAx, a Swiss fixed-line and mobile operator. The decision by the Federal Communications Commission (ComCom) calls for unbundling the full spectrum of connections to end-users.
