Swisscom v. Sunrise: 90 million francs lawsuit

A new rumble of thunder in the quiet world of Swiss telecommunications. Swisscom has filed a lawsuit against Sunrise (UPC), claiming damages of at least CHF 90 million. The lawsuit stems from a mobile telephony network sharing agreement between Swisscom and UPC prior to the latter's takeover of Sunrise.

Following the takeover of Sunrise by UPC, customers of the former cable operator who originally used the Salt network were logically transferred to Sunrise's mobile network. Swisscom accuses Sunrise of breaching this original contract, which has led to a large claim for financial compensation that is currently pending before the Commercial Court of Bern.

Sunrise (UPC) remains calm

Sunrise's parent company, Liberty Global, has responded by saying that Swisscom's allegations in its complaint are "unfounded and/or exaggerated". It also said it had not made any provisions for the proceedings, believing that losses were unlikely, according to various press reports citing AWP.

This is not the first time Swisscom and Sunrise have come face to face in court. Swisscom has been accused of abusing its dominant position in the past, notably in the Swiss Post broadband connection of Swiss Post websites, where Sunrise filed a complaint.

A few strategic issues

Swisscom's CHF 90 million lawsuit against Sunrise is an important chapter in the history of telecommunications in Switzerland. As both sides prepare to defend their positions in court, the outcome of this case could affect the reputation of Sunrise UPC, which is once again at the center of a storm.

The Swiss telecommunications market never ceases to amaze. It is unfortunate that all the energy expended on conducting financial transactions is of no greater benefit to consumers, who end up footing the bill for the combined effects of poor management and unfettered shareholder appetites.

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