Ad aprile Swisscom aumenterà i prezzi del 6%.

And inflation will still be a fraction of a percent or whatever they pretend.

It’d actually good news because if you are stuck in a subscription with them, you can cancel :p

I have said it here before: Raising prices is the only thing that Swisscom can do from a business perspective.

The Swiss Telco-market is very unique. We could also say it’s “broken”. Because in a normal market the provider that dominates the market isn’t at the same time the provider that has the highest prices and the worst price-performance ratio.

But for some reason*, the majority of customers stay with Swisscom, regardless of how bad their offer is.

So what is Swisscom going to do? Lowering prices? Makes zero sense.

If they lower all their prices by 10%, they’ll lose 10% of their revenue (a huge sum) and they gain nothing. Because not a single new customer will join them for a price cut of 10%. In order to get the price sensitive customers, they’d have to cut prices by 50%. But if they cut prices by 50%, they’d still end up with a dramatically lower revenue, even if that would bring them many new customers. (Simply because there aren’t that many people who aren’t already their customers…)

So the only way for them is upping the price. And it works splendidly for them, because the customers don’t punish them for it. Instead they stay with Swisscom regardless of what they do. (It’s a bit like Donald Trump saying that he could shoot somebody on the street and he wouldn’t lose voters because of it.)

[*] main reasons are probably: 1. Most Swiss have enough money. Sure, they whine about everything being expensive, yet they do nothing to save because apparently it doesn’t hurt them enough. 2. Most Swiss live under the delusion that Swisscom is somehow their “friend”. The mistake this predatory hard-selling company as “the nice guys” compared to the competition.

Thank God I’ve already canceled them by end of March.