Good afternoon, ladies and gentlemen, and welcome to Swisscom full year results presentation, again online. My name is Louis Schmid, Head of Investor Relations. We now start the online meeting with the program and a quick overview on page two. In the first chapter presented by our CEO, Urs Schaeppi, he dives into some of last year key highlights commercially, operationally, and financially. In chapter Swisscom 2025, our CEO presents shortly an update on the group strategy and elaborates on our ambitions 25 and focus 22. In chapter one, Switzerland, Urs gives you a short overview on our 21 achievements within Swisscom Switzerland for B2C and B2B, updating on our network rollout ambitions and presenting the operational excellence results and plans.
Alberto Calcagno, CEO of Fastweb, will discuss in chapter Leading Challenger in Italy the industrial and financial performances of our Italian business and its plan going forward. After Alberto's presentation, Eugen Stermetz, our CFO, will present in chapter Rock-Solid Financials in detail our financials 2021, including the outlook 2022. In the wrap-up chapter, some final remarks from our CEO. After the presentation of approximately 90 minutes, we move directly into the Q&A session, which would start at around 3:30 P.M. For this part, Dirk Wierzbitzki, Head of Residential Customers, Swisscom Switzerland, and Urs Lehner, Head of Business Customers, Swisscom Switzerland, will also attend and support in case of specific operational Swisscom questions. With that, I would like to conclude my introduction and open the meeting and hand over to our CEO. Urs?
Yeah. Thank you, Louis, and a warm welcome from my side. I would like to start with our highlights in 2021. Overall, we had a very strong year from an operational side, commercial side, but also from a financial side. We have well strategic positioning. If you look to our results, they are slightly above previous year. Highlights, and that's not the highlights which are quoted by Swisscom. These are highlights which are quoted from third parties, which shows that Swisscom is in a lot of dimensions a leading telecom operator. On the Net Promoter Score, we have excellent values, customer satisfaction values. On the network side, we won, I would say, all the relevant tests, which shows that we have a leading technology position.
Also on the service side, customer service side, we have excellent results, which leads at the end to this high Net Promoter Score which we have. In the B2B market, certainly to mention is that we have a broad positioning in the product portfolio which differentiate ourself strongly in the B2B market. Fastweb is a successful and innovative challenger in Italy, and we were able to grow in a very competitive market by 5% EBITDA, which is an excellent result. Financially, we are solid. Eugen will come later to it. The words of Eugen are rock solid. He can explain it later. Maybe the last point on this chart is, let's say, our ambition in corporate responsibility.
We have ambitious targets to be net zero by 2025 as the first operator. Already today on Scope one and two, we are net zero. That means or that shows that sustainability was also in the past a very important thing for Swisscom. To our market performance. Good, strong market performance in Switzerland but also in Italy. In Switzerland, you can see that on the wireline business we are approximately stable from the net adds. Means slightly very slightly positive in the net adds, and that's a very good contribution if you look to the competitive dynamic which we have in the Swiss broadband market. On mobile, we were able to grow by 128,000 postpaid subscribers. You see also the market shares which are on a high level, approximately stable.
In Italy, we have a picture where we can show strong growth in the Italian mobile market, 511,000 additional subscriptions on mobile and on broadband, where we have a value strategy in this very, let's say, promotion-oriented market from the last months. Where we have a value strategy, we are approximately flat. If you take into account all the wholesale customers, you will see that we have also in the wireline market decent growth. On this slide, the key financials. Net revenue approximately stable. EBITDA with a growth of CHF 96 million, so at CHF 4.48 billion EBITDA, which is strong contribution. Half of this growth is coming out of Switzerland and the second part of the growth is coming from Italy.
You see it on the right side of the chart. CapEx are approximately stable at CHF 2.28 billion or CHF 2.3 billion approximately. Good stable CapEx. Overall, this leads to a high operating free cash flow proxy of CHF 1.9 billion. On the net income, two remarks. The first one is it's 20% higher than previous year. Main reason are some financial effects which we already communicated in the last quarters. Then certainly also the better operational performance leads also to a higher net income. Overall, good and strong results. You can also see that we were able to decrease our debts. Swisscom Switzerland. Some remarks to our unique positioning. On the UBB attractiveness of the Swiss market, you see that Switzerland is leading.
We have very good networks in Switzerland with a very good coverage. That means 99% of Switzerland has a coverage above 100 Mbps. Also, on the NPS side, Swisscom has a strong contribution. These are from the retail market. On B2B, we have even higher Net Promoter Score and our let's say advantage to our competitor is even bigger. What is also interesting to mention is our market share on the service revenue. You can see it on the slide on the right side. We have 67% market share on revenue share as on the revenue share basis. Strong total shareholder return, you can see it also.
We are a reliable stock with a good dividend. Some remarks to our environment. The environment is a challenging one on the one side, but on the other side, we show that we are able to perform in this environment. The market will certainly be under pressure on the service revenue side in Switzerland. In Italy, we are facing with more competition, more competitive dynamic in the broadband market, especially in the retail segment. On the other side, there are a lot of opportunities in the IT business, so growth opportunities. Efficiency in this environment keeps extremely relevant and is key for Swisscom.
On the customer side, what we see is that also driven a bit by COVID, that digitalization is accelerating and customers are asking for good online services which are combined with the physical environment. Shops remains important. To have a good customer experience, seamless customer experience over the different channels is a differentiator and important. On the stakeholder side, certainly ESG is becoming more relevant, where we are very well positioned. We are certainly also facing with more cyberattacks. Just to give you one example, Swisscom Switzerland has 4.6 million attacks on the infrastructure per month on our infrastructure. This shows that you need skillful teams. We have 700 engineers which are working 24/7 hours on this topic. You need also technology.
You must be leading on the technology side. Otherwise, we will not be able to, let's say, compete in this cybersecurity space. To our goals. We have on a corporate Swisscom level, we have these five goals. I don't want to read them now in detail. We will go through these different goals for Italy, for Switzerland, but then you see also cross-dimensional goals of the how is our ambition on the financial side, corporate responsibility and innovation and reliability, which is at the end the DNA of Swisscom innovation and reliability. I would say for every operator, that's the DNA, because at the end, we are here to connect our people everywhere and to each minute or each second. These are our priorities or our goals.
You will see them later also in the different presentations. Certainly, the one in the middle of this chart, because we are in a scale business, because we have a big installed customer base, is defending our market shares or increasing the market shares in Italy. Market share is an important topic, but not for every price. On a value-based approach, we will manage our market shares. The second priority is using the momentum of digitalization. There are a lot of opportunities in the customer-facing unit, but also internally where we can use digitalization to improve our processes, to automate the processes or to get a better quality, as an example, in the networks on the network side.
Third priority or third focus topic is the efficiency. We have this goal of CHF 100 million plus also in the future. For this, we have a broad roadmap to increase our efficiency day by day. Priority or point four is find solution in this, let's say, in this regulatory environment. It's clear the regulator is also a weapon of our competitors. They use it to get better, let's say, better conditions on our network. We need a good dialogue and a good exchange with the regulator to explain us because we are a fair competitor. We don't misuse our market power. The third point I would like to mention is this transformation. Swisscom and also Fastweb is in a constant transformation. It it's behind this transformation is also the cultural shape.
Swisscom has a very good culture, but we can even improve this culture to become more agile, to be more flexible, to have a better, let's say, performing together culture. This is on the focus topic for 2022. To Swisscom Switzerland, some achievements of the last year. Overall, we have outstanding results. You see here some examples of it. In the B2C market, we launched our new offer, blue Play. That's a content library where we have a lot of movies and content, more than 10,000, where customer get an easy access to this content. This is for free. That's an add-on on our TV platform.
Certainly, also important to mention is that we were able to have low churn figures in Switzerland in this very competitive promotion-oriented market, which shows that we have a good differentiation in this market. On B2B side, important one point what I would like to mention is this strong Net Promoter Score. We were able to increase the Net Promoter Score substantially, and it's really high. It's really high Net Promoter Score. This is important if you want to have a strategy where we increase our share of wallet. Net Promoter Score is extremely important, so we can do more upselling with IT products and cloud and security products.
On the infrastructure side, certainly, interesting to mention are the wins of all the wireless network tests in Switzerland, and also in January, we won the Ookla test for the best network, also on 5G, also on speed. That shows that our network are really superior. The coverage in Switzerland of 5G is at 99%. This is on the dynamic spectrum sharing approach, and I will come later to the coverage of, on, with the band is 3.5 GHz. Ninety-nine percent 5G coverage with high speed is certainly an outstanding result. Our ultrabroadband footprint is at 72%, so that means 72% of the Swiss households have speeds over 200 Mbps.
That's important to mention because later we will talk about fiber to the home rollout, and it shows that short or mid-term, Swisscom has already today a very performing ultra-broadband network. On the financials in Switzerland. You see that overall the service revenue are approximately flat with different dynamics. On the one side, you see the service revenue, which is eroding by CHF 190 million. That's price-driven, ARPU-driven. On the other side, we were able to grow in our solution IT business in the B2B market by CHF 52 million. The EBITDA, underlying EBITDA is CHF 48 million higher than previous year. Certainly a strong performance if you see that our service revenue declined by CHF 190 million in the Swiss business. Good, strong financials also in Swisscom Switzerland. On corporate responsibility.
It's quite a busy chart, but it shows our, let's say, our track record, but also our ambitions. You see on the left side of the chart, you see our Scope one and two. CO2 is the direct CO2 emissions. That means the emissions which are coming from fuel, from terminal energy, but also from the electricity which we are purchasing. That's Scope one to two. You can see that from 2010, Swisscom is actually 100%, we have 100% or we are using 100% renewable energy. By 2020, you see that we are net zero on Scope one and two. From operational side, Swisscom is already today net zero for Scope one and two.
We were able, and that's impressive, to decrease our direct CO2 emissions from 1990 to 2025 by 90%. That's an extremely big move in these emission reductions. Behind this are a lot of different actions on the technology side, but also in the supply chain. On the right side of the chart, you see our indirect CO2 emissions, the Scope three, and you see that this footprint is also reducing. The ambition is to reduce the footprint from 2020 to 2025 by 25% through a lot of different actions, mainly in the supply chain.
This leads at the end to the result of net zero over the whole value chain of Swisscom in 2025. Our results in 2021 just to show you that we don't do greenwashing. It shows that we have already in 2021 strong contribution. You see how many people we educated on the use of our products. Also the media production for young people as an example. In the middle of the chart, you see how much we're able to reduce our electricity consumption. The efficiency measures actually avoid 22 GW-hours electricity consumption, and this was a bigger network. That shows that our different actions to save energy are working. Our strategy.
We have a proven strategy since several years, and this slide summarizes the major elements of our strategy in a simple way. It’s all about good customer experience. This customer experience is at the end the sum of an excellent product portfolio, of an excellent customer service, and of an excellent infrastructure. This leads to this superior customer experience. On the operational excellence side, which remains important for us because telecom business will continue to shrink, it’s important to do our homework, to have smart investment plans, to have lean IT and network infrastructure, and to use the momentum of this digitalization in our market. On new growth, that’s the third pillar of our strategy.
The most important thing if we talk about strategy is maximize the core. What can we do to optimize, let's say, the revenues and the margins out of our core business? This has a lot to do with churn, with ARPU, with share of wallet, with cross and upselling. There we were performing in 2021. On IT, we are able to grow. That's the second pillar, mainly in the B2B market. In the adjacent business, there are small other elements. They are small today, but in five years, they will be more substantial for our business. To our ambitions in the B2C market. You see it on the chart, you see the five main elements.
I don't want to go now in detail in each of them. I have some slides later. You see it's about customer base management. It's about excellent experience. It's about inspiring our customers through a better entertainment proposition. This TV chapter. We have different chapters of TV. We come every year with something new which differentiates ourselves in this TV market and at the end, also in the broadband market. Then also the multi-brand strategy, which is an important pillar for our B2C business. One of the ambitions, you see here what we are doing, maximize customer value. One element is inOne, that's our hero product, inOne. There we have a strategy. A more for more strategy. That means we bring in more value.
As an example, we have a 10 GB offer, or at the other side on mobile, we are upgrading prepaid to postpaid customers. A lot about customer base management. On the right side of the chart, you see that we are successful with this. The overall ARPUs of inOne were increased from CHF 5.1 million to CHF 5.3 million. Also, if you are talking about maximizing the customer value, the network side is extremely important. I will come later to it, and there we are performing. You see it with the different logos on the chart. The third pillar for this maximizing the customer value is only to have a differentiated access. End-to-end connectivity solutions is extremely important.
At the end, the customer at home, he don't care if the connectivity falls out because a weak Wi-Fi connection, in-house Wi-Fi connection, or because of the internet access. It's important to have an end-to-end performing solution over the internet to the TV platform. Fixed mobile convergence is also an important topic to defend the ARPU and to have a low churn. You see that converged customers have a higher ARPU and a lower churn. That's why we continue to push converged offers, which we do quite successfully. 46% of our broadband customers are in converged offers, and 41% of our mobile customers are in a converged offer.
On the bottom line of the chart, you see that we have a churn figure for converged offers at 7.4%. Strong results with this fixed mobile converged offers. To entertainment. Entertainment is important, very important for Swisscom because it's that differentiator for our broadband access. There we're doing an outstanding job. We have different roles. The one is we are the aggregator. We have an aggregator role, so we are bundling the different content and giving our customer the easiest access to these offers. That's one point which is important. Second point is what we have done in 2021 is we launched an OTT offer. That means that broadband connection independent, connectivity-independent customers can use our OTT offer.
This can also create in the medium term an upselling case for the internet access. Certainly also important for an outstanding entertainment proposition is the, let's say, the different pay-TV elements which we have. We have a broad portfolio for blue Play. This different movies and series. We have a good sport portfolio where we have a strong growth. You see it on the right side of the chart. We were able to have + 77% more blue Sport subscriptions. Music is also an important thing and will become much more important in 2022. There we have nice things in our pipeline. On digital experience.
Before I mentioned that the market is turning more and more into a digital market. Therefore, it is important for us to deliver an excellent digital experience. We do this through different elements. As an example, we launched a new smart home proposition. It was growing by 70%, still on a low level from a revenue side, but from a market take-up, good results. We are also enriching our core with value-added services. Security is becoming more and more important. Security solutions, not only for the B2B market but also for B2C. Some applications like myCloud, that's a cloud-based data storage application for our customers.
You see that we are able to get the growth also with these value-added services on the right side of the chart. To our multi-brand strategy. This is a successful strategy. On the right side, you see the percentages of the customer base which are on these second and third brands. On postpaid, it's 23%, 4% higher than previous year. On broadband, it's at 5%. This shows also the different dynamic of the market. Second and third brand are more attractive in the mobile market than in the wireline market. You see also on the chart the different positioning of our brands. Swisscom, the absolute major and core brand, which we protect against the second and third brand. That's clear, with a good fencing. To be part also in...
To play also a game in the lower or more price-sensitive segment, we use Wingo and the brands, Coop Mobile and M-Budget, to save our market share. This is working very well. Also, the cannibalization between the second and third brand and Swisscom is at a good level, so that we get a good business case overall out of this multi-brand strategy. To promotional activities. The market was and is still very promotion-oriented. Therefore, we have to do, let's say, we call it smart promotions. On our own brand, it's more value-oriented promotions, and with second, third brands, we address the more price-sensitive customers. On digital push, I don't go in too deep. You see that we are successful in ramping up our online shares.
That's important, and this will continue. That doesn't mean that we don't push also our Swisscom shops. The Swisscom shops remain extremely important for our core brand. B2B ambitions, you see them on the chart. I don't go in detail in it. I have some additional charts on the next slide. Here you see that in the B2B market, we are still facing with a service revenue decline by approximately 5%, driven by competition. The ARPU on mobile is at 31 CHF. This will certainly continue, that we will have some erosion in the B2B market. From the subscription side overall, we have a solid situation, and we are also able to get winbacks through a differentiated product portfolio.
Maybe some remarks on the potential growth potential in our B2B business. 5G IoT is certainly potential to grow in B2B. This needs time because it's project-oriented. You see the use cases where we see potential. It's for critical communication, prioritized voice, push-to-talk features, but also on mobile private network. That's a big opportunity. In some areas, more on temporary allocations, fixed wireless access is an opportunity. You see we won the award, IoT award of Microsoft, and this is an Industry 4.0 solution for a railway construction site. This shows actually the potential of 5G in this B2B market. ICT portfolio, I don't step in.
We have a broad ICT portfolio to be the partner, to be the digital partner for our B2B customers. Very broad, well-positioned, and also a good market position in the whole market. In the SME market, we have potential to grow. That's why we also made an acquisition of MTF. That's a mid-size IT system integrator in Switzerland. With such capabilities, we can accelerate our go-to-market for ICT solution in the SME market. You see the portfolio, you see what we are offering in this ICT market on the left side of the chart. Digitalization is in the B2B market important. We do a lot, and on the bottom line of the chart you see that we are doing it in a good manner.
Otherwise, the Net Promoter Score wouldn't increase in the case that this is on the chart. Good momentum on digitalization. We will continue to do it. One example is one B2B portal, which we will launch in this year. On infrastructure side, I have some charts, but it's turning around, excellent networks, then reducing complexity, that's an important thing, and fiber rollout. That's priority number one, reliability and security. What are our ambitions on our infrastructure? You see it on wireless. We have already today a coverage of 99% of 5G. 5G+, that means this with 3.5 GHz spectrum, we are at 62%. You see also the ambitions for 2025 on the right side of the chart. On wireline, I already explain it.
Our ambition is to increase the footprint of over 200 MB until 2025 to 85%, and 60% will be the footprint on fiber to the home. We have also KPIs on security and reliability, and you see that we were able to increase the stability, the reliability of our networks in the last year in a substantial way. That's important and it will continue because a customer, he don't accept 1-minute breakout of a network. We are winners in all the mobile tests. You can see it on this chart. Now coming to 5G, which is certainly in great interest from your side. The strategy of Swisscom to rolling out the network was a strategy of waves.
The first wave, which we have done from 2009 to 2015, was a fiber to the home rollout on a point-to-point architecture for 30% of the households. It was. The focus was on the main cities of Switzerland. The second wave of our fiber rollout strategy was the wave from 2015 to now, to 2021, where we increased our ultra-broadband footprint to 90%. The goal was to have a fast rollout, to have whole Switzerland over 80 Mbps, to be also competitive against a cable operator. The third wave, that's the wave where we are in now. That's the wave where we want to increase our fiber to the home footprint on a point-to-multipoint architecture to 60%. That means +30 percentage points footprint increase, which is equivalent to 1.5 million households.
The point-to-point, point-to-multipoint architecture is the fastest, most efficient technology and internationally accepted network architecture, which we are using. We certainly do it in a nondiscriminatory way. We offer access to our network, but not everybody has the same view on it. That's also for sure. That's why we are talking about this discussion with COMCO. What is interesting is that our competitors actually support us in this architecture. Salt and Sunrise and other players in the Swiss market actually announced that they support this architecture to rolling out fiber networks. Coming to the investigation from COMCO, here you see the process and, as of today, the investigation is still ongoing, still pending.
We are in that discussion with COMCO to find an agreement. To find an agreement how we could, let's say, find a solution for their offer. For their request for a Layer one offer. It's the virtual Layer one offer, which we have actually in a market survey. We don't have the results of this market survey today. In the meantime, we can continue to roll out our networks, but we are not allowed to market these networks. Also the rollout of the Salt network is on hold. That means we can construct and we do it in a way that we don't create sunk costs.
Even if we would have to switch from a point-to-point, point-to-multipoint architecture to a point-to-point architecture, we can use the investments which we have done in the last, let's call it in the last mile and in the in-house cabling. That means we can construct, but we can't market it. The market impact up to now is limited and we have to discuss with COMCO to find a decision how we find a fast solution. Because the longer it lasts, the more impact we will get in the market. Now to the different scenarios.
Our best case, and that's our scenario which we are addressing, is to save the original point-to-multipoint rollout plan, where we deliver 60% coverage in Switzerland or additionally 1.5 million households. We offer a Layer one virtual access product, and we restart the partnership with Salt. That's the base scenario, the best case which we see, which you can see in the green chart. The fiber CapEx for this scenario in 2022, they are flat and the absolute amount is CHF 500-CHF 600 million. It's flat, huh? For the next years, it would have 2022-2025.
We would have a slightly decreasing CapEx of approximately CHF 100 million per year due to the completion of fiber to the street networks, which we are closing in 2022 and the Salt agreement. Flat for 2022 and then - CHF 100 million in the next years. The worst case scenario, that would mean no agreement with Comco, is that we will switch to we call it a smart point-to-point rollout scenario. At least on a temporary basis. That means until we get more clarity from the regulatory process. Our ambition is still our ambition to save point-to-multipoint, but we would switch on a temporary basis. We would reduce our target, coverage target from 60%-50%.
That means 1 million households, additional households in 25. A point-to-point architecture has certainly higher additional costs for households, and you see it that it's in the region of CHF 500 or approximately 30%. We optimize these additional costs in the manner that we are optimizing our footprint, our rollout scenarios. We go to more economically or the most attractive regions, and we use also synergies with the communal construction. It's a more focused rollout and also a slower rollout. This will save us some CapEx. But we keep the option open to switch later to point-to-multipoint. I think that's important, and that's important to know.
If we would have to switch to this scenario, we would also have to adapt the Salt partnership on a point-to-point architecture, and we would certainly continue to fight for point-to-multipoint, but this would take us two to three years. What does this mean for the fiber CapEx? In 2022, also in the worst case, the CapEx are flat or as in our guidance, CHF 500 million-CHF 600 million. In 2023-2025, we would have CapEx which are going up by approximately CHF 50 million per year. That means overall, if you compare the best case scenario, that means the point-to-multipoint scenario, to the worst case, the smarter point-to-point rollout.
This would mean additional CapEx in the region of CHF 400 million, maybe a bit higher, maybe up to six hundred, but more in the region of CHF 400 million or CHF 150 million per year. That means digestible additional CapEx. We have a dual objective. That means doing a consequent rollout execution to stay competitive, to get a good wholesale market share, and also to avoid land grabbing or overbuilds through other fiber initiatives in Switzerland. On the other side, it's important for us to have a solid financial positioning. That means the rollout will be financed out of the free cash flow. We have enough flexibility because also of our strong balance sheet, if something unpredictable would occur.
The CapEx guidance for 2022 is unaffected and also the dividend outlook is stable. This to the fiber to the home rollout strategy, a smart rollout strategy in the worst case. On this slide, I don't go in deep. It shows you our ambitions on the network side. What we will do to reduce the complexity in our network. We have clear phase out plans. You see, we intend to phase out 3G in 2025. We will do copper phase outs until 2030. Also consolidation and simplification of networks. You see the ambitions which we have, clear roadmaps behind it, and also phase outs and cloudification of application. This leads to a better operational performance or excellence at the end.
On the reliability side, we have programs, holistic programs to improve our reliability on the network, on the culture side, on the process side, and you see targets and you see also the achievement which we had in 2021. We were able to decrease substantially the incidents, the amount of incidents in 2021. Wholesale, message here is having an attractive portfolio to save the wholesale business. Now I'm coming to costs. And you see we were able to perform in the last years in the range of CHF 100 million. We have a strong track record, and also in 2021, we saved CHF 119 million costs. The question is now how we do it. This is a portfolio of different actions.
Portfolio, streamlining product portfolios, improving processes, as an example, phasing out smart end-to-end operations, such things. This leads at the end to further decrease in our costs. The target for 2022 is to decrease our telco-related costs by approximately CHF 100 million. We say telco-related because in the solution business, we have growing costs. With this growing costs, you have also additional revenues and additional margins. From an efficiency side, it's important to look to these telco-related costs. There we see savings of CHF 100 million and also in 2023 plus, we see savings in the same magnitude. Good. This was it. Now I would like to hand over to Alberto. Alberto?
Good afternoon from my side. Also, if you can start with the next page, please. That I can see it. I don't see it in my screen.
Hello? Can you hear me?
Yeah, we hear you.
Okay. If you just can... Otherwise, I will use my presentation, but I was seeing the presentation, and now I don't see it anymore. Okay. Yeah. Okay, that's it. Basically, I think that 2021 has been a terrific year in terms of performance. We exploit another year of strong operational momentum. As you remember, we have been concentrated on infrastructure over the top strategy. That means to roll out, to own, and to develop the best infrastructure, but also to have it available through scalable platform. Available for the retail business, available for the enterprise business, and available also for the wholesale business.
As a consequence, we can say that in the wireline, we had a very strong increase. We see in a second, but overall, we almost reached 200,000 new customers, with one objective. First, we don't want to follow the price war that is happening even before the Iliad entry, in Italy, and we want to remain at premium if compared with our competitors, and also based on superior, quality, of our services. On the other side, we want to exploit the really good opportunity, that a lot of new entrants are giving us for our wholesale business. Very strong, momentum in the wireline, but also very strong momentum in mobile. We have exploited actually in 2021, very strong growth.
We are the second-best market performer after Iliad, while in enterprise, we continue to be the leader in growth. During the year, clearly, we have done a lot of innovative launches related to the offer. Not only the 2.5G offer, but also the new 5G FWA service. I remember that we are the only one that are combining real 5G frequencies, so the millimeter one together with the 3.5. Then we launched next our new Internet-Box that is the only one in Europe to have Alexa integrated. We also launched the 5G mobile in our enterprise business. As you know, we have today reached 35% market share in the enterprise business.
We have, you know, a very strong opportunity to increase our share of wallet and start to be also a relevant player in the 5G mobile in this market. For the enterprise also, as you know, we are really focusing on cloud and on security. We have built a new data center in Rome. We have built a second security operational center in Bari, coupling the one that we have in Milan. We struck an agreement, a partnership with Amazon Web Services. Finally, as it concerns the network, all our rollout are on track. Today, we have already a very strong ultra-broadband infrastructure with roughly 90% coverage of family and business in Italy. The setup of FiberCop is completed.
The plan and the ambition plan is still the same, and to roll out as soon as possible a fiber coverage up to almost 60% of Italy by 2025. Also 5G, our 5G network rollout is going well, following our expectation, and we are today covering 50% of the population. If we can move to next page, please. As a result, a bit of numbers. We increase our customer base by roughly 700,000 that are divided in this way. Roughly 200,000, the wireline, the vast majority based on the wholesale business, but also showing some growth in retail, and then more than 500,000 in mobile.
Our enterprise market share reach almost 35%, and most importantly, the order book, which basically are anticipating or are mirroring the future revenues growth 15% year-over-year to EUR 250 million. This is data extremely important because it shows or it anticipates the growth of revenues that will come in 2022 and 2023. As you know, as a result, the full year guidance was achieved, 5% growth in EBITDA, 4% growth in revenues, and most importantly, 34 consecutive quarters of growth in a market that has done probably 34 consecutive quarters of decrease and decline. The ingredient of success is clearly, you know, the control that we have on infrastructure and on innovation.
We have, you know, a leadership in wireline, and we have been, again, this is not just internal analysis, but there are external reference. We are the first operator for broadband quality as per Netflix index since the inception. Also we are leading in sustainability. We have been certificated over the year by Standard Ethics to be the best ESG telco in Italy. If we can move to the next page, please. Some numbers, I would say that revenues are, you know, in a good shape, and also because they are growing not only as a company, but growing in every single market, wholesale, enterprise, and consumer.
There's been clearly some fluctuation in the quarters. At the end of the day, you know, the result is a growth in every market, especially also in the consumer one, where, as I said, we will not go for a price war, so it is extremely important, this data for us. In terms of the EBITDA, we've 5% organic growth. Also in this case, all the units are contributing to growth with improving recurring margin. CapEx slightly higher than prior year, but we are talking just about CHF 14 million, so it's not a big deal. The ratio CapEx to sales remains the highest in the market, reaching almost 25% which is flat versus last year.
While for operating free cash flow, we reach an increase of roughly 20% if compared with last year. If we can move to the next page, please. In terms of recipe for continuous growing and delivering growth, we have to. First of all, the growth will come from all our markets, so our consumer wireline, mobile, enterprise, and wholesale. For what matters the consumer offer, we will expand our offer and services. We want to for the enterprise, we want to grow on mobile market, exploiting the new 5G service that we launched back in September. Also in enterprise, we will continue to leverage our leadership on cloud and security. For wholesale, we will continue to scale up the volume business.
As we saw, we almost hit 200,000 this year, actually in 2021. This year, we want to increase it. Over-the-top service capability with a strong NGN infrastructure, so we want to provide the best performance everywhere, leveraging on fiber, on FWA, and also on 5G. We want to continue our growth, leveraging on, as we said, on our most performing infrastructure and also scalable platform. On top of that, we have positioned the company with the new, let's say, you know, with the new aim and with the new vision, which is to develop a trustable and sustainable corporate image.
We will be playing a very important role in the digital transformation by through our Fastweb Digital Academy, which is basically, you know, our academy that allows people to receive digital training and digital certification. We have included these training, let's say, lessons in our offer, and also they will be available for our enterprise customer. I think that in the future it will be more and more important to have a sustainable business from 360 degrees, and so including also an effective, I would say, positioning for the development of the digital skills in our country. If we can move to the next page, please.
For what concerns the consumer wireline, we already anticipate a bit, you know, of the most important things. As I said, Next is today the best internet box. It is Wi-Fi 6. It has also the possibility to have multiple booster to have the best coverage, in-house coverage. But also, we want to actually achieve the best ultra-broadband performance everywhere through our FWA. Our FWA basically is the technology that we choose in the gray and the white areas. It is a special FWA because we are talking about 5G, as I was saying, a combination between the millimeter frequencies 26 GHz together with the 3.5. That means that we can deliver a very strong and high-performing services.
Today, the average, just to give you an idea of our customer base in terms of download performance is about 600G at about 200G in upload. We want clearly to maintain our NPS leadership also in the future. We have significant space between us and the second best, but we want to increase this advantage. We also want to continue to push on fixed mobile convergences. Today, we almost reached 40% FMC penetration, but we do think that in the future this growth will continue. In terms of, I would say that our strategy, I already have been anticipated that we really don't want to follow the price war.
You know, one year ago, the price for fiber was about EUR 30. Now, you know, we are already at EUR 19 or even lower if we take into account the launch of Iliad. I don't think that this is, you know, sustainable prices. Therefore, for us, the wireline world will always be the combination of two opportunities, the retail one and the wholesale one. If we can move to next page. In terms of mobile, we are again in a very strong positioning. We have almost reached 2.5 million mobile customers, which means roughly more than 500K versus previous year, with almost 30% growth. There is a churn reduction.
Today, we are at 24%. The 5G service has been launched in December and now is available for consumers in more than 1,000 cities with an outdoor coverage at 50%. 5G services is available for all our customers for free, so it's included for all the customers that were already our customers before the launch of this technology. As I said, we launched also the mobile enterprise 5G in September 2021, and we will try to exploit also the you know the advantage that we have from a technology point of view if compared with the Vodafone and TIM that are still leveraging 4G spectrum, while we are already trying to exploit the 5G frequencies. If you can go to next page, please.
In terms of enterprise, that's a very strong story for Fastweb. We in all these years have been investing in infrastructure at 360 degrees. When it comes to enterprise, it means that we have been investing also in data center, in cloud platform, also in security platform. That's extremely important because today we can be really the one-stop shop for innovative services for this market. Moreover, also in the future, we will push on innovative services such edge computing. We have a plan to develop a total of 40 nodes by 2025.
Clearly, edge computing will be, is already today, but will be extremely important because it will bring computation and data storage closer to the sources of data thanks to these distributed nodes, and then it will enhance requirements of low latency necessary, for example, for the development of IoT. In terms of operational KPI, the revenue increased by 8% almost to CHF 1 billion, also thanks to a good performance in the public administration. In terms of market share, we reached almost 35%, which is 1 percentage point on top on 2020. If I break up the market share in the PA, we reach already 46%, and in the year, that means an increase of almost 3%.
At the end of the day, as I said, we have been able not only to do a very strong growth in revenues, but also we couple this growth also in the order book. This is extremely important because, you know, as I said, the order book represents the future revenues. Another important note is that, out of the order book, almost 50% comes from the value-added services. We're talking about data center, cloud solution, security, which is extremely important because all these services are belonging to markets that are growing.
This shows our ability to move away from, I would say, core and stable or decreasing market like voice and connectivity and well-positioned into market, which, on the contrary, will be extremely dynamic and growing in the next year. We do expect this trend also this year and also for the year after. As usual, we have been able to get new contracts, and I don't have to enter the details, but we are always getting top-notch customer.
If we can move to next page, please. Again, on the wholesale business, our ambition was to accelerate on the ultra broadband volume business and to further grow in the core service. We were able to achieve such target because in the ultra broadband volume business, we grew thanks to Sky and Wind Tre broadband volumes. Also, we were able to continue to backhaul in BTS. In the year, we have been able to connect 2,000 new BTS. As usual, we are exploiting opportunity-based business. Also in the year, we have been able to record some revenues related to the building connection for Flash Fiber, for example.
You know, at the end of the day, that shows that is the right strategy to develop. In terms of volume, we do see that you know, 2022 and also 2023, other years will be extremely growing year. As I said, you know, in a retail market that become more and more competitive with a lot of new entrants, it's very good to be the leader in growth the wholesale business. In the future, for us, it will be important to attract more telco customers and players also from adjacent markets, such as multi-utilities.
We wanna really to become a one-stop shop for all the, you know, new entrant in the telco consumer business. If you can move to next page. In terms of our infrastructure evolution, again, this slide shows that our ambition is to become the, you know, the telco provider with the largest ultra broadband footprint. It will be a combination of technology, because as Urs was saying, at the end of the day, for the customers, really, you know, is negligible what kind of technology is serving or is delivering the performances.
You know, depending on the area, we will continue to invest in fiber to the home or FWA 5G or 5G mobile. Our 2021 coverage is already a good coverage, but clearly we want to reach the excellence by 2025 with almost 27 households passed and representing 90%. We do it through three different co-investment plans. The one in fiber, which is the one that we built together with TIM and KKR. The one in FWA 5G depends on the co-investment that we are developing with Linkem. As I said, for the 5G rollout, we have signed a co-investment agreement with Wind Tre.
This is extremely important because I said it's really the core of our strategy to have the best infrastructure and to make it available to everybody through scalable platform. We can go for next page, please. In terms of you know positioning we think that you know as a telco company we have more responsibility that goes I would say beyond the rollout of the network. We do think that it's also important to play a role in the digital transformation of the company also in training people you know young guys unemployed or even elderly people you know to have digital skills in order to belong or to have their own future.
We will do it through four, I would say, pillars. One is our core business operation. As I said, our Fastweb Digital Academy courses, you know, which includes entry packages for people that don't talk the digital language, but also you could find also courses that are, you know, extremely, you know, professional courses. It's really for all the needs and appetite of different audience. This is now included directly in our offer. Basically everyone, all the clients of Fastweb have access in a preferential way to this content. Second, as I said, the Fastweb Digital Academy is the engine of this content training.
We have developed, you know, a lot of new courses, and, you know, this is gonna be, I think, extremely important as developing the rollout. Third one will be Step. It will be opening in Q2. It will be our exhibition center where people will enter or will have a contact with the future works. Today, one of the main problem of young people is that they are not inspired or they don't know what will be the future works, the future employments, what are the activities, what are the projects. They just know some names that the companies drop, you know, to them. We want to show what will be, you know, possible works in 2030, in 2050.
Hopefully, we are gonna also offer them, you know, pragmatic content in order to get part of this, of this future. Last, but not least, more important, every single employee of Fastweb will dedicate five days, a kind of a week dedicated to the future, where they will give their personal contribution, either, you know, to our Fastweb Digital Academy, becoming mentor or becoming teacher, or they will be also involved in the Step and the exhibition center. There is, you know, a real effort, a real commitment from all our employees to open up the digital transformation, to make it available to all society.
Not only just, as I said, network, but most importantly, the skills that you need in order to manage, you know, your future and the network at best. I don't know whether there are one page more. So if we can wrap up all, you know, all the slides. I think that the top management is fully committed to continue to deliver the top line growth over time. This will be materialized not only through the right and smart combination between retail and own wholesale business. But also, you know, a continuous and constant push on mobile consumer. A continuous and constant push on enterprise. Where clearly, you know, value-added services will be more important.
As I said, the infrastructure is at the core of our strategy. We will continue to expand our infrastructure in order to provide the best performance everywhere, regardless of the technology. We will continue to be different from the others, try to position on innovation but also to become the number one company in terms of reputation. If I look at the financial outlook, again, 2022, regardless of the market, regardless of the competitiveness, we will be another year of growth for us. We are confirming revenue in the region of 5% growth. EBITDA in the region of 5% growth. CapEx stable. 2021 has been a successful year.
We do want, and we are, strongly committed to make a successful year also for 2022. I thank everybody and then I leave the floor to Eugen.
Okay, thank you, Alberto. Hello everybody, also from my side. I'm happy to walk you through the numbers in the next 20 minutes or so. I'll start on page 58 with group revenue. Group revenue was up by CHF 83 million. Underlying + 64, net of some currency effects. As Alberto already explained, we had a very impressive growth again at Fastweb with +CHF 94 million. That's in Swiss francs compared to last year, that's a +4%. The lion's share of these 94 million coming out of the enterprise division with a very impressive growth of +CHF 72 million. Swisscom Switzerland revenues more or less flat, with -CHF 17 million year-over-year on a basis of 8.2 billion or so. B2C revenue was up +CHF 31 million.
That's a mix, or our usual mix of service revenue decline on the one hand. There was an increase in hardware sales on the other hand. also a compensating increase in other revenue. I'll spend a few words on other revenue when we get to Swisscom Switzerland revenue at the next slide. B2B segment, CHF 44 million down. Also here, a well-known mix. Service revenue decline on the one hand, but very nice growth of the IT solution business on the other hand. We'll also get to that on the next page. Let me spend a couple of words on some noteworthy quarterly developments. You see in Q4, B2C, -CHF 15 million. That's mainly due to lower hardware sales. We did have, as others, some supply chain issues on some handsets, et cetera.
That showed up in lower hardware sales in the fourth quarter. Margin impact is negligible of this development. Also, one word on the quarterly development in Q4 of the wholesale business. You see -CHF 11 million here in the wholesale business of Swisscom Switzerland, Q4. That is finally the MVNO agreement or the loss of the MVNO agreement with UPC showing up in the numbers. We had during the year some compensating factors from inbound roaming and others. In the fourth quarter, the net net figure that you see here is the minus eleven, and that corresponds pretty much to the number from the lack of MVNO agreement compared to last year. Also, one word on the Fastweb quarterly performance. You see with CHF 7 million here, we have rather moderate growth here.
You see with +CHF 7 million here, we have rather moderate growth in the fourth quarter compared to growth in the previous quarter. The mix is not surprising given what Alberto said. Consumer was down by -CHF 3 million. Enterprise segment was strongly up again with +CHF 22 million. We had a minus in the wholesale segment of -CHF 12 million, but that's not representative of any underlying trend. That has more to do with the previous year, with the Q4 of previous year, than with the Q4 in 2021. In Q4 of previous year, we reached the peak of our construction work for the Flash Fiber joint venture, which is a rather low margin undertaking. It was also on one of the slides of Alberto.
Compared to the strong Q4 2020, we had a -12%. As we already heard, we strongly believe in the growth potential both of the enterprise segment and of the wholesale segment in Fastweb. Alberto's words on the guidance speak for themselves. Let's move on to Swisscom Switzerland, the -1.7%, sorry, revenue that we saw on Swisscom Switzerland. As usual, we show you the major components of this development on the left-hand side of the page. We have service revenue, first of all, a decline of -CHF 189 million. CHF 105 million out of B2C, CHF 84 million out of B2B. If we dive into the B2C revenue, the lion's share comes from the wireless segment. The wireline segment was just -CHF 25 million.
I think that's one, for the full year, very good news. As most of you know, we have a structural effect on the wireline side, with voice line losses amounting to about CHF 20 million or so, year-over-year. That means outside these voice line losses, we basically had no significant service revenue decline in the wireline B2C segment, and that's certainly something that is very positive. We did have some help from COVID tailwinds. We talked about that before, some traffic revenues, et cetera. The most important factor here is really that we were able to stabilize the ARPU or even improve the ARPU in the wireline segment B2C. On the wireless side, the usual effects, brand shift, fixed mobile convergence. I'll talk about that in a second.
In the B2B segment, CHF 51 million of service revenue decline was from the wireless segment of CHF 34 million from the wireline segment. The wireless B2B segment is certainly the one that is, in percentage terms, most under pressure. All the service revenue declines, with very few exceptions, are price related and not ARPU related, as we saw in the operating performance when it was talked about the market performance. Let me say a few words on the actual performance from -189 compared to what we predicted and forecasted at the beginning of the year. We talked about a service revenue decline of some CHF 250 million-CHF 300 million. We performed much better than that. About a third of that is some COVID effects.
We had traffic revenues in all in various segments, B2C and B2B, that were not expected. About a third of the difference between what we expected and the final result is due to COVID. About two-thirds of the effect is really due to operating performance, one being the topic that I just mentioned, the wireline B2C performance, and also ARPUs on the B2B wireless side came out better than expected, so we were able to retain customers at a higher price level and retain more customers than we originally expected. So far on service revenue for the moment, I'll walk you quickly through some of the other components. Some of you picked up on this already in the morning, the famous other revenue components.
First of all, the decoupling line, the +CHF 50 million, that's related to our old subsidized mobile contracts from two to three years ago. The good news is this line is gone, so it's not going to confuse anybody anymore. It was already gone by the end of the second quarter. The bad news is also it's gone, so it's not going to help in the year-on-year performance to 2022, but we'll talk about that when we talk about the guidance. We all can safely forget about this item. The next item is a very important and very positive one, +CHF 53 million growth in the IT solution business. 43 out of those 53 are organic growth, 10 million come from acquisitions.
We grew in various sub-segments, very telco related segments like cloud data center, security, but also business applications, SAP, etc. A very good year, profitable growth from the IT solutions business. Not going to talk too much about hardware. That's mostly related to first two quarters. We already covered that in the previous quarters. Maybe 1 word on the +CHF 55 other revenues. What is in there? There is quite a significant number in there from Q4, as you see in the line on the bottom of the chart. What is in there? Mainly three items. One is, again, an IFRS 15 item. It has nothing to do with the device decoupling, but it's always an IFRS 15 item. It has to do with our hardware promotions.
When we run hardware promotions and sell hardware at a subsidized price, IFRS 15 assumes that the discount should be allocated over the whole life of the contract and not at the time of the sale. The result of this is that at the time of the sale, we have increased revenues, and over time of the contract, we have decreased revenues. Now, one can debate, you know, how reasonable this standard is, but this is the standard, and we have to follow it. The upshot is if we have increasing hardware promotions, as we had this year, we have a positive balance out of this. If we have decreasing hardware promotions, we get a negative balance out of this. In a steady state, it's plus or minus zero.
That's what we expect for 2022, by the way, just in case the question comes up. It really depends a lot on the particulars of the marketing plan of the specific year, so it's a bit hard to predict. That's one item in there. The other item I explained already in the Q2 session is a refund we get from our insurance. We offer our customers an extended warranty and have an insurance for that. The scheme is quite profitable, so we get a refund. We do get this from time to time, so in a way, it's a recurring item, but the exact size depends on the profitability of the scheme, and it's not absolutely stable. In principle, it is a recurring item.
Finally, just to address the Q3, sorry, the Q4 increase, there is IFRS 15 in there, but there is also a nice upside in there. Our cinema business grew by CHF 11 million in the fourth quarter, so people went back to the cinemas despite all the COVID situation or maybe because of James Bond, and that was CHF 11 million in that number. I hope that wraps up the other revenue discussion as good as I can. On the quarterly evolution of the service revenue, you saw that we are tending towards a CHF 50 million run rate over the last couple of quarters. It's pretty stable, and that's also what we expect, by the way, for 2022 as a baseline scenario for the quarterly service revenue decline.
On the individual drivers for the Q4 service revenue decline, bottom right of the chart, I'm not going to go into the details because these are the usual drivers. We put a comparison line in there to Q3 2021. You see the situation is quite stable. We have our usual suspects, fixed voice line losses, fixed- mobile convergence, price pressure obviously in the B2B segment, and all the other effects that we talk about regularly, and they are pretty stable. This is our baseline assumption that the CHF 15 million quarterly rate is the one to assume going forward and that's better than it was already in the past. Let me move on to the EBITDA evolution. EBITDA is up CHF 96 million.
We had quite a number of exceptional items over the quarters, just one in the fourth quarter, restructuring charge. In the end, they all balanced out, so the underlying EBITDA performance is the same as the reported number, or more or less the same as the reported number with +CHF 95 million year-over-year. We heard already about the Fastweb performance. Another year of 5% growth on EBITDA level, which is obviously very, very positive. Also Swisscom in Switzerland had a positive EBITDA evolution of +CHF 48 million. B2C was up CHF 73 million, a combination of the revenue dynamics that we saw and of consistent cost savings that were very well executed during the year, and in particular in the fourth quarter. B2B was down CHF 61 million. That's clear.
We lose in B2B very high margin service revenue, and then on the other hand, we compensate a new revenue from IT service, IT solutions. That's obviously very nice to compensate with IT solutions, but the marginality of an IT solution revenue is quite different from the margins on the service revenue in the telco business. Infrastructure and support functions, CHF 35 million. That is under the EBITDA line, but it's really about cost. What shows up here is the cost savings in our infrastructure network division, also in the support functions. Two or three words on quarterly developments. B2C was particularly strong in the fourth quarter with + CHF 34 million. On the one hand, that's cost savings. On the other hand, there is a subscriber acquisition cost item in there.
We had lower subscriber acquisition costs, which is more due to some hardware availability issues in the supply chain. This is one of the reasons why B2C is so much up in the fourth quarter. Also, on B2B in the fourth quarter, quick explanation in minus CHF 33 million. We booked some accruals for project risks. We ran some pretty large and long-term projects there, and that is the main explanation for this sort of outlier. Much on group EBITDA. I move on to EBITDA, Swisscom Switzerland. As I said, underlying +CHF 48 million. I'm not going to talk about revenue anymore. Direct costs, not so much to say. SG&A a little bit higher year-over-year. That comes mostly from the first half of the year, which had to do with the first half of last year, 2020, when the pandemic hit.
Towards the end of the year in the fourth quarter, as I explained, rather hardware, some hardware availability issues and lower SAC than last year. Outpayments more or less flat with some variations over the year. Goods purchased and others are higher by CHF 48 million. That's very much driven by the first quarter and by the third quarter. The first quarter, again, in the first quarter 2020, we had low hardware sales because shops were closed, et cetera. In the third quarter, we had also in the previous year exceptionally low costs for sports events, et cetera. We reported about this a year ago. Otherwise, there is not so much to report. More importantly, on indirect costs, we managed to achieve or overachieve our cost savings ambition of CHF 100 million indirect costs.
That also comprises the costs, the increased cost for the solution business. On the telco business alone, that would be CHF 137 million ±. That's a very good result. It comes from reduced workforce expenses. That's net workforce expense, net of capitalized expense, and reduced other OpEx. On to CapEx, you already heard we invested CHF 2.3 billion again this year, slightly up year-over-year. I don't bother too much about the quarterly numbers. We have quite some fluctuation sometimes from quarter to quarter, so the annual figures figure is certainly the one to look at. In Switzerland alone, CHF 1.6 billion of CapEx. You see the rough breakdown on the right-hand side. The major item, obviously, we discussed it already a lot today, is the fiber CapEx with CHF 550 million.
That's about 34% of the total. 20% in wireless, and the remainder in basic infrastructure and IT. On to free cash flow, page 63. We have quite a clean free cash flow bridge this quarter. We have operating free cash flow of CHF 1.891 billion. Net working capital, not much change this year. There was some change last year, but this year nothing much. Pension, no impact this year. Normally, we have a mismatch between accrual and cash compensations. Not this year because there was an extraordinary profit on the pension. No impact from pension. Very low interest expense, as usual. Cash payments, CHF 279 million, slightly lower than last year. That's merely scheduling, nothing else.
We end up with a free cash flow of CHF 1.5 billion. That's about CHF 200 million below last year, but last year it was just driven by net working capital and pension. That's very good, and it compares very favorably with our dividend payment of CHF 1.14 billion, which means dividend coverage is more than assured. Net income quickly. Our net income is up by CHF 300 million. Now that sounds a bit more than it actually is from an operating point of view. EBITDA is up by CHF 96 million, so about 100 out of this 300 is operating. The other 200 come from the financial results, some exceptional items that we disclosed and presented in the first and second quarter.
Our swap of our Flash Fiber stake into the FiberCop stake, which led to a reevaluation at market price of this participation. Also, the sale of BICS. It was all in the first quarter, and we've reported about it. Onto our balance sheet. Urs mentioned it already. Net debt is down to CHF 7.7 billion due to a strong free cash flow and also some cash inflow from M&A, given the sales that we had last year. We are down by 0.2x net debt to EBITDA, and end up with a leverage of 1.7x. That's without IFRS 16, that's 1.4.
Just one note, we presented frequently the government's leverage cap of 2.1x. That has now become a 2.4 because the government now also takes into account the IFRS 16. The old 2.1 become 2.4, and going forward we will only report the 1.7x number. We are not going to adjust anymore for IFRS 16. That gives us a stable A rating from S&P and Moody's. We have a very conservative debt side. 88% is in fixed interest, so we are well covered against any interest rate increases that might come. Maturities are very long, and that shows up in our financing cost, which is on average, including old financings, 0.9%.
On top of that, we have CHF 2.2 billion of committed credit lines, obviously unused. With that, I come to the guidance outlook for 2022. I'll walk you through the numbers one by one. Guidance for revenue is CHF 11.1 billion-CHF 11.2 billion, so that's essentially flat. Why do we give you a range? There's a certain unpredictability around hardware revenues at this time. They have very low impact on the EBITDA, but there is a certain unpredictability, so that's why we give a range of CHF 11.1 billion-CHF 11.2 billion revenue. On EBITDA, the guidance for 2022 is CHF 4.4 billion. That's slightly down from the 4.478 that we had in 2021. I'd like to quickly walk you through the bridge from 2021 to this guidance.
The bridge is as follows: Service revenue in Switzerland, we expect minus CHF 200 million. I already talked about that. Cost savings in the telco segment, we expect cost savings of CHF 100 million, so that gives a minus CHF 100 million. In Switzerland, we have two effects that basically cancel each other out. We expect a minus of CHF 20 million-CHF 30 million from the wholesale business. That's the final piece of the MVNO agreement going out and some erosion of other wholesale revenues, CHF 20 million-CHF 30 million. On the other hand, we expect CHF 20 million+ positive EBITDA impact from growth in the solution business and increase of the profitability of the solution business. So we are still at minus CHF 100 million. We expect +5% EBITDA growth from Fastweb. That translates into EUR 40 million-EUR 45 million.
Given that the current exchange rate euro to Swiss franc is much weaker than the average of last year, that translated into Swiss francs translates into a flat EBITDA in Swiss francs, not in euro, in Swiss francs. This is how we end up with roughly -CHF 100 million, and this is what drives the CHF 4.4 billion guidance. Finally, on CapEx, CHF 2.3 billion. CapEx guidance essentially flat. We are aware that the CHF 2.3 billion are slightly above the consensus. Our assumption for the reason for the difference is some of you might still have some Salt agreement in there in the CapEx line, so this is something I can talk about in a second.
Secondly, we have an overlap of the final tail of the FTTS rollout and the ramp-up of the FTTH rollout, and that final tail goes into 2022, and this is why we have this CapEx guidance of CHF 2.3 billion, which is slightly above consensus. Two words on CapEx, what is in there and what is not in there. The Salt agreement is not in there. If during the year the Salt agreement becomes reactivated, that would have a positive impact on CapEx, but it depends, as you might remember from last year, very much on timing. Assuming that this is not going to happen at the beginning of the year, at the moment, we assume that the impact for 2022 will probably not be material. Point number two, the CapEx guidance assumes a point-to-multipoint rollout.
Now, we talked a lot about a potential shift to point-to-point. In the worst case, this is not in there. If it were to happen in 2022, this would mean slightly higher CapEx, as we explained. Also here, given that this is not going to happen in the first half of the year, the overall impact in our view today is not material. This is why we don't guide for it. If any of these two items should ever become material during the course of the year, of course, we would update you on that. With that, I come to the dividend guidance. If all these things fall into place as we project them right now, we will also propose a dividend for the fiscal year 2022, payable in 2023, of 22 CHF per share.
With that, I hand over back for the wrap-up to Urs.
Yeah. Thank you all again. Very short final remarks. We are well positioned, and we have a solid strategy and clear goals and a very good alignment in the management team, what we have to do and what are our targets. And I think that's important to get a strong momentum on execution. The second point is the priorities. They are clear on the operational side but also on the financial side. And we have a strong commitment, as already Eugen mentioned, on the dividend. Let's close this presentation, but I would like to say some words to our new CEO, Christoph Aeschlimann. He was in the IT business. He was coming out of different IT departments. He was a developer.
His background is actually really an engineering background. He has an engineering degree. He then made an MBA. He has a good mix between technical and business. Before his role in Swisscom, he was CEO of ERNI Group. ERNI Group is a company which developed IT solutions, software solutions, and he knows really the software business. Since 2019, he's the head of IT and network in Swisscom, and he has a good reputation in Swisscom and also a good backing in the management team. With this, I'm convinced that Christoph will be a good CEO of Swisscom and also shares the value and the strategy which we have today.
This will also give a bit, let's say, certainty that not everything will be changed. He will certainly be a guarantee for development and develop Swisscom in the future. With this, I would like to hand over to you, Louis.
Thank you, Urs. Now it's time for the Q&A session. As highlighted previously, Dirk Wierzbitzki and Urs Lehner are available for specific business questions in Switzerland. Some remarks to the people being registered for raising questions. First of all, use the feature Raise Your Hand to ask your questions. Second, activate the camera, unmute the microphone, and please speak loud and clear so the people being on the webcast can also follow the discussion. Lastly, third point, please indicate your name and institute you're representing. Let's now start the second part of today's meeting, conference with the first question coming from Polo Tang, UBS.
Hi, guys. Can you hear me? Just check.
Yes, it all works.
Okay, great. Good. I just have a few different questions. The first really is just about clarification in terms of the Salt joint venture. You said that in a worst-case scenario where you have to use point-to-point architecture, can you explain why it takes two to three years to get the Salt partnership restarted? What actually needs to change if you change the technology in terms of your rollout? Second question is really just about inflation. Can you maybe just talk about how you think about the impact of inflation on your business, both in terms of the top line? Is there any potential in terms of opportunity to take pricing either in Switzerland or Italy? Actually, how should we think about inflation in terms of costs?
For example, wage inflation, energy costs, or is there anything else that might be impacted by inflation? My final question is really just about Italy and M&A. If KKR does acquire Telecom Italia, how does this change the market dynamics? Then separately, would Swisscom be willing to engage in Italian M&A? Would you ever consider divesting Fastweb, or are you more focused on driving M&A and potentially doing mergers?
Thank you, Polo. I think the first question on the Salt JV is for Urs, the second one on inflation is for Eugen, and the last one, M&A Italy consolidation, whatever, is again Urs.
Maybe that was in a misunderstanding. These two to three years would take the whole process with COMCO to get clarity over the whole process. If we would have switched to point-to-point, we certainly would try to find faster an agreement with Salt. That's clear. We wouldn't need two to three years. It is two to three years is correlated to the process with COMCO. If we don't find an agreement with them, then that would be the normal process.
On inflation. Say very briefly, we are not too concerned about inflation at this point on the cost side, and we also don't see too much upside on the revenue side. Talking briefly about Switzerland. Switzerland inflation last year, that is in 2021, was 0.6%. At least for now, Switzerland seems to be quite detached from the overall inflationary environment in Europe or in particular in the U.S. We don't expect at the moment this inflation rate to somehow feed into our personnel expenses in any significant way. We expect to have an annual pay rise, annual average pay rise of about 1%. No big point of concern there.
The one point where inflation could potentially hit is on the energy cost side, because obviously energy cost inflation is quite decoupled and much more extreme, it seems at times, than the overall consumer price index. There, what we do, there we try to hedge ourselves by buying energy pretty significantly in advance. Obviously this doesn't hedge you long term. If long term prices go up, they go up, but it gives you a certain hedge long term and reduces the risk. There might be an impact, you know. I don't know, single million type of size, but not much more than that. In terms of passing it on to consumers, that's certainly an option when it comes to hardware. You know, we do expect in some other...
Some places, increased prices in hardware. That's a natural consequence of hardware shortages that are all around. This you can, to quite an extent, pass on to customers, in particular in the B2B business, both in Switzerland and in Italy. On the B2C side, to factor something into, you know, into subscription prices, that would take, I think, a massive increase in inflation for that to be possible. Otherwise it would be wiped out by competition. That's my take on it.
On the question of merger or consolidation or KKR. Just a general statement. Our strategy is to develop Fastweb on a standalone basis. We think that we can do it. Fastweb don't need a merger. We can develop and increase the value of Fastweb. The team of Alberto always showed that they are capable to handle different conditions in the market. You know, to M&A, that was always our strategy. We have a pragmatic view to the market. We observe what will happen, and then we would judge it if this would make industrial sense for us. Overall, I think Fastweb is not directly touched.
Maybe Alberto, some words from you on KKR, your view on this.
Again, you know, I think you've been very clear. I think that, you know, Fastweb at the end of the day has all the ingredients to continue to perform growth also in the future. As long as, you know, we are focused on infrastructure, we have all the balance that we can, you know, exploit, as I said, through wholesale, through enterprise. You know, at the end of the day, we have been able to grow in a market that has been already, I think, very, very competitive. I think that any consolidation that you know could happen in the future for our competitors is just, you know, something good for us.
Because if we can lead a market that is extremely competitive, we can be in a better position in a market that is less competitive.
Thanks.
Thank you, Polo. Next question comes from Ulrich Rathe.
Hello? Hello, can you hear me?
Yes, we can hear you.
Thanks for unmuting me. I have two questions and one clarification. It's Ulrich Rathe, Jefferies. Sorry, my camera wouldn't work because it needs to be rerouted to New York at my employer. On the fiber situation, you mentioned that there's now a market testing going on for the virtual Layer one. Urs Schaeppi, you mentioned the support you have from Salt and Sunrise, I believe. Obviously Init7 acted against it in public already. I'm not entirely familiar how such a market test would be decided. Can you give a bit of color how such a process can conclude in Swisscom's favor when one player makes specific arguments against that?
Is the market testing essentially some sort of get everyone's view together and then make a decision what is sensible to do? Or is opposition, strong opposition from one player already a difficult situation in these processes? Also on the P2P situation, I was wondering, COMCO in the court case, certainly in the court decision, it looks COMCO is arguing that Swisscom has called the extra cost for P2P as less relevant in the past in the first 30% rollout, and that this comes back now to bite you in the sense that COMCO argues, well, if it wasn't so relevant in the first 30%, why should it be relevant in the second?
30%. Could you comment on that particular point? What your counterargument to that would be? That would be my first question. The second question is, at Fastweb, you're talking about not wanting to participate in the price war. What retail share loss would be acceptable? Is there sort of a limit at which you would say, "Look, you know, we've got to make sure we have enough retail presence in the market, and this is now getting wrong, and we have to sort of enter that market, that retail market in a stronger way." My last question is just a clarification. On other revenues, thank you very much for the incremental color there.
Obviously, there are sort of moving parts, and it seems to be a bit lumpy from quarter- to- quarter. How do you look at the second half other revenues now? Is that a normal level or was that an elevated level when we look into 2022? Thank you very much.
Thank you, Ulrich, for the three questions. The first question is for our CEO, Urs Schaeppi. The second one is for Alberto Calcagno, and the third one, I think, is for our CFO, Eugen Stermetz.
Good. To the first question on fiber market tests. What COMCO made is actually, they made a test, or they ask competitors how good or how suitable this product is for their need. They tested the demand for this product. We don't know the final results of this market test, but there are companies who support this product and other ones which don't support it. Init7 certainly will never support a solution, in my view, besides a dark fiber access.
That's it was clear in the beginning that these remarks will have different colors. The big ones, really, the big players, they were actually positive and also positive to point-to-multipoint architecture. At the end, it's the decision of COMCO how they judge these results from the market test. Do they think that this is enough for having a good competition in Switzerland? That will be the judgment of COMCO, and we don't know the result today. On these additional costs. When we built the first wave of our fiber strategy was a rollout in the cities. In the cities, normally the ducts are bigger than in rural areas.
That means in cities, we could make a point-to-point rollout without actually doing construction work on the ducts. That means in the cities, the difference between a point-to-point rollout and point-to-multipoint rollout is small. If you go in more rural areas, in smaller communities, these costs are increasing because we have approximately 80% of the ducts which we have to open because the fiber needs more space. That's why we will have additional costs of 30%-40%. In the discussion with COMCO, we showed them the facts. Now, the question is how they judge it. If you read the paper, you can also see that the cost argument could be a strong argument. Eugen.
Um-
No, Alberto.
Alberto, yeah. Thanks for the question. Again, the wireless market is not really as volatile as it could be, mobile market. We do think that we will be able to retain our market share. We have 2.7 million fixed customer. I think that, you know, we will be able to retain, you know, more or less, this number. Actually, we still hope to grow this market based on our superior NPS. The only thing that I said that I think that today there is, you know, is a not sustainable, you know, price situation. If our competitors want to lose money and also trigger dynamic movements in their customer base, you know, happy to do it.
For what concerns us, we remain extremely, you know, very logical and rational. As I said, we will continue to deliver the best infrastructure, the best services, and we do think that we will be able to hold our market share. Thanks.
Okay, on the other revenue line. Going through the three items that made the big difference year over year in the second half of the year. IFRS 15, my best guess would be that it's an elevated level. It's an elevated level IFRS 15, because simply all the hardware promotion that we did this year will come back with negative balances in the next year. That's certainly an elevated level. The refund from the insurance, I would also say elevated level. The cinema will hopefully stay with us. As you saw in the EBITDA bridge, I also didn't mention the other revenue component. That's my best guess for now.
Thank you.
Thank you for all three.
Next question comes from Jakob Bluestone, Crédit Suisse . Okay, obviously, it looks like he's not available, so we are going to the next one is Georgios Ierodiaconou from Citi.
Yes, sir. Hi, I hope you can hear me. A couple of questions from my end.
Georgios Ierodiaconou, I don't know why, but you have to turn the camera, I think.
Okay. Let me try and do this. Is this okay now?
It looks better, much better.
Okay. I'll try and ask it like this. Thank you for giving me a chance to ask questions. I have one double question on fiber and one double question on Fastweb. On fiber, I was curious, Urs, if you could share with us some of the other participants in this process. I'm guessing the government and maybe local authorities may have a view about the extra cost of rolling out, particularly in the, I guess, less dense areas and what that could mean long-term, whether they are on your side and whether there has been any debate on that front.
The second element to that is in the event that some compromise is reached on point-to-multipoint, is it fair for us to assume that you could recognize more than the annual impact you guided last year just because of all the preparation you've done over the last few months, and therefore you will deliver a lot more in the next twelve months than what you are initially planning? On Fastweb, just a follow-up on what Paul asked earlier around M&A and options there. I'd be curious just to hear roughly what the balance sheet capabilities are of Swisscom in the event that something would become available, like, what are your limits in terms of how you can participate?
The second element to that, if I could ask, is on the network slicing agreement you have with Wind Tre. I'm curious how it works. If you were to get more spectrum, do you get a bigger slice? Can you effectively scale up your network without having to commit to higher rentals to tower companies? Is the question I'm trying to ask. Thank you.
Thank you, Georgios Ierodiaconou. I think the first question on fiber is split between Urs and thereafter Eugen on financial impacts, and then on Fastweb delivery potential, Eugen, and for Wind Tre slicing, Alberto.
Good on this fiber topic. You know, we have actually a lot of supporters for this point-to-multipoint architecture. I mentioned it before, the big players in Switzerland, they support it. They see it as the right solution because at the end, the impact would not only be to Swisscom, the impact would be to everybody who is building fiber networks. We have support from the big players in our market. Second point is certainly rural areas on a political level, they are supporters for this architecture because they see the consequences. The political people, they also see actually that this could lead to a lower rollout speed and a better coverage in Switzerland.
That's why they certainly don't support this process. At the end, it's a running process, and political people, they don't involve them in a process. That's a bit the situation. That's why it's up to Swisscom to find a solution with COMCO.
Okay. Georgios , I'm sorry. I have to ask back because I understood if the compromise was found, could we recognize more than we guided last year? But I didn't hear or understand what recognize, revenue or CapEx or?
Well, the revenue and the CapEx benefit just because you've done a lot more preparation, I guess, so you can deliver a lot more coverage earlier on to Salt than what you are guiding in terms of the phasing, basically.
Yeah. Sorry. Out of the Salt agreement. Now I understand. I'm sorry. You know, that's super hard to predict. That's super hard to predict because first of all, to answer that question, we would need to know what the compromise exactly looks like. We have, you know, we have no visibility as to that. Once you know what that compromise looks like, you would need to know what the rollout plan that follows from that is and how it impacts the Salt agreement. As much as I would like to answer the question, I can't today. I'm sorry, I'm getting the non-answer question because the second one is a bit similar. It's a different question, but it's always a non-answer.
Obviously, I cannot talk about, you know, the balance sheet potential we might have in the event of a consolidation in Italy. What you do know is that with a leverage of 1.7, we are on the very conservative side compared to our peers and obviously have quite some flexibility if ever some opportunity were to present itself. That's probably about as much as I can say.
Thank you, Eugen. On the second question, first, the leverage potential and, Alberto also on that question regarding...
Yeah. I think that you know our co-investment with Wind Tre is fully scalable. As long as we have additional spectrum, we can clearly make it available for the co-investment and to leverage it and exploit it at best for us for our customers. Thanks.
Thank you, Alberto.
Congratulations, Urs. Well deserved. Thank you. Thank you for all the insights you provided us over the years.
Thank you, Georgios. Have a good day. Next question to try again comes from Jakob Bluestone. Hopefully it works. Obviously it does not work. Okay, we move to Andreas Müller, ZKB.
Do you hear me?
Yes.
Yes.
We hear you.
Okay. Hi. I've got a question also on the 30% extra feeder costs with the point-to-point investments. Can you give us more color on that and the ability also to pass that on to competitors if they went for this network or this fiber feeder? Then, will, in case of the negative composition, the fiber CapEx being increased, being mitigated by other declines of CapEx, for example, in the mobile networks. So the question is then, of course, the overall CapEx practice is that going up also, CHF 150 million per year for these three years?
Thank you, Andreas. I think the first question is for Urs, and the second part on CapEx, Eugen can take over.
Good. You know, it will be certainly a challenge to charge additional costs of the network rollouts to competition because we have a wholesale market in Switzerland. Prices are more national prices. In Switzerland, the other topic that you have always to take into account is the price squeeze. The wholesale market is not independent to the retail market. That's my message. In Switzerland, the pricing is a nationwide same price, so we don't have local prices. I think it will be quite a challenge to charge additional costs per region. You know, I don't know it. Maybe the market will be another one in some years, but today it wouldn't work.
That's why we have to make more a kind of cherry-picking approach. It would be for everybody the same, huh? That's for sure. We have to take a kind of cherry-picking approach, taking the bigger, more attractive locations. That's exactly my message. At the end, we would have a divide from cities to rural areas because we have to invest in a less efficient technology. Eugen?
Yeah. Maybe on the CapEx, just a minor clarification for the start. The CHF 150 million extra CapEx is the worst case compared to the best case. The important comparison to make is to the status quo of today, to the CHF 500 million of today. Compared to the CHF 500 million of today, in the best case, our fiber CapEx envelope would decrease by about 100. In the worst case, our fiber CapEx envelope would be flat or go up by maybe CHF 50 million. Would CHF 50 million? Would we be able to compensate an additional CHF 50 million of CapEx per year in an overall pot of CHF 2.3 billion ? Probably yes, just given the size.
Whether it will be done, we need to see once we are there. I think the important message is this extra CHF 50 million compared to today is in no way a threat to our overall financial policy.
Thank you, Urs and Eugen. Thank you, Andreas.
Welcome.
Next question comes from Simon Coles, Barclays.
Hi, guys. Can you at least hear me?
Yes. All good. Can see you.
Excellent. Thank you. The first question is just on Fastweb. We've got the 5% growth guidance. Just wondering if you'd give a bit more color on the individual lines. Consumer, it's looking a little bit tough now, but you're saying you're going to defend your base. How should we be thinking about that outlook in 2022? Should flattish revenue line compared to what we've seen in the past? Enterprise, you obviously have done a very good job over the years, but now your market share is 35%, you said. What's the growth driver in 2022 there? Is it more market share or is it the EU Recovery Fund? How should we think about Wholesale?
Because it's very difficult for us to have too much of an idea of what's going on there. You said 2,000 sites were connected with fiber. Is that gonna be sort of steady level again in 2022 or does that start to come down? And is that offset with your sort of wholesale business? Just some more color around those moving parts would be great. In Switzerland, if I could just dive into sort of the fixed-service revenue dynamics. You said CHF 200 million service revenue losses. Should we just assume that Q4, those impacts that you detailed in the slide very helpfully, is that the sort of trend you're expecting to continue?
Should we maybe expect some small changes, maybe B2C wireline is going to see a bit more pressure given we've seen Sunrise UPC expanding Yallo offering and things like this. Just wondering how those moving parts play out. Then finally, you just said on the guide of the EBITDA bridge, which was super helpful, CHF 20 million to CHF 30 million, I think you said from Cloud Solutions. How much of that is organic and how much is the acquisition you announced at the end of last year? I'm just wondering what's driving that there. That would be great. Thanks very much.
Thank you, Simon. First question on Fastweb is for Alberto. Second one on service revenue, I think Eugen can take over. If, well, Dirk or also Urs might add something on the service revenue or telco outlook 2022, also very much appreciate. By the way, you can always ask questions on the operations in Switzerland. We have two guys here, very expert, experienced. The last question, EBITDA, cloud and MTF impact, I think. That was your question, organic versus inorganic. Maybe Urs or you, Eugen, can take over.
I start with Fastweb. For what concerns the revenues of consumer, you can assume, I think flattish revenues. Don't forget that, at the end of the day, you know, the consumer has a double face. One is the wireline, which we said, we will be, you know, roughly, let's say basically staying the same market share, but also mobile is rapidly growing. Mobile revenues will grow. I would say flattish, hopefully, we'll actually try to do better than that. Let's say for the moment, let's stay with that. In terms of enterprise, actually, the market share is not an issue at all because this 35% market share, by the way, has been increasing steadily 1%-2% every year.
We continue to grow also because still the vast part of this market share relies, I would say, on core services and not on value-added services. In 2022, but also for the upcoming years, you will see a lot of demand of, you know, cloud solutions, you know, data center managed services. Certainly, you already mentioned PNRR will come to Italy. It's not something that will impact 2022, but certainly from 2023, 2024, we will have, I would say, a much more, a booster, a natural booster of the public administration needs. We do expect also for Fastweb to take a good part of this digital transformation.
Definitely, enterprise, yes, we know that 35% can look at a very high market share, but you know, history shows that we've been able to grow every year. Also there are effect and facts that will be extremely positive for 2022 and going forward. For wholesale, I do understand that it is difficult to predict, but I would say that, you know, also in the future, as long as, you know, the unbundling of our network and so the volumes will grow up, also revenues will be, you know, pretty much more predictable because it will just a matter of price times volume, the wholesale customers that we will connect of our telco customers.
In terms of BTS, I would say that I think, yes, in 2021, we've done 2000. You can assume something that stays between 1000 and 2000, depending also the rollout of the other player. But I'll say that also in the future, the revenue growth will come from the ultra-broadband volume business. And with that, I leave the floor to Eugen, I guess.
Okay. I'll start with the CHF 20 million-CHF 30 million and then go to service revenue, because then I can smoothly hand over the CHF 20 million-CHF 30 million. A very good question, actually. Very good questions. You know, the one acquisition that should make an impact on that number is the MTF acquisition that Urs talked about before.
Now, we can't disclose details on the transaction, but it's a double-digit revenue company and single-digit EBITDA company. That single digit EBITDA will, as you know, spotted quite well, will be in the EBITDA bridge in the solution business, year-over-year. The other two components in there are profits from incremental growth, organic growth. The third component is the improvement of the profitability of the existing business. Excellent question. On the service revenue drivers, I'll give a quick start and then hand over. In principle, all the major factors that we monitor and that we also, you know, share with you every quarter seem pretty stable at the moment, and they will certainly not go away.
you know, price pressure in B2B, Urs is going to talk about it, is not going to go away. In B2C, the structural effects, like fixed voicemail losses, it's not going to go away. All our tools in the retail competition for market share, like fixed mobile conversions, promotions, branches, etcetera, it's not going to go away. We don't see a massive tendency one way or the other. As I said, for the fine-tuning of what might be there, if one can talk about it, I'm happy to hand over maybe first to Dirk and then to Urs.
Okay, good. Thank you, Eugen . I mean, obviously, service revenue mirrors our considerations around our market share as it is subs times ARPU, if you wish, yeah? As far as subscribers is concerned, you know, we're gonna continue the kind of two-tier market strategy as Urs Schaeppi explained it earlier. Defending share on the own brand and attacking on the third and second brand. We feel confident, you know, particularly with the performance we had shown in Q3 and Q4, that we can continue that performance in the marketplace as a subscriber side of the business also in 2022. When it comes to this, you know, the service revenue effects, and there I will make a couple of comments, you know.
There's a couple of historical effects that are kind of coming to an end. Like for instance, you know, subscribers in the broadband and landline signing off from the fixed net voice service. I mean, that's kind of more or less done. Same for the effect that we have in the customer base for the convergence advantage. Having mobile and broadband with us on the own brands is kind of more or less through that effect, yeah? Actually, in the home business, on the broadband and TV business, we were actually able to manage the ARPU just a little bit, you know, up instead of down.
That encourages us that we can continue this value approach, for which we have quite installed a lot of, let's say, you know, processes and practices into the organization. For instance, to give you an example, you know, it's kind of a sales objective, you know, what the acquisition ARPU is, yeah? Or it is a touchpoint agent's objective, you know, to maintain when a customer wants to modify the offer, to maintain the level of ARPU or even to, you know, upsell or cross-sell. Yeah, we clearly, let's say, you know, positive about, you know, that trend can continue.
We even made good experiences last year that, for instance, phase out of products like 2G in mobile or older tariffs in landline is actually you know an upsell opportunity within the customer base, and we still identify you know a couple of opportunities into that, yeah? Quickly on the mobile side, I think the biggest effect is the brand shift, yeah? Which is you know that portion of you know second brand customers that come from our first brand. Urs or Eugen said it earlier on, we're monitoring that closely. I think you know we are a healthy, if you wish, one can say that in that context, cannibalization level, and we think we can you know continue that pace.
There is one more, let's say, reason that also gets placed into the service revenue. We even are trying to lower a little bit, let's say, you know, our activities on promotional offers for tariffs. As you know, you know, it's almost like a market standard. Unfortunately, it's a standard that, you know, for the first, like, 12 months or so with us, you know, with the competition at, like, 24 months, people are going into a subscription at a discounted price. We have just made changes to that in January and February. We will not offer, you know, any of such, you know, advantages to standalone customers, you know, only to converged customers, yeah?
Also on the second brand, you know, where we kind of also in promotional times played with, like, the 20 CHF price mark for, like a mobile national flat. We want to, let's say, get that back between levels to CHF 25-CHF 30 . We're taking a bit of, let's say, commercial or promotional aggressiveness out. We still believe that that is successful. Overall, that was a long answer. I think with all these measures, we are confident, you know, to bring the plan as we presented it to you.
To add on the B2B side with a few words.
Let's say in the SME space, it's pretty similar as just Dirk mentioned it, as it looks like in B2C. Going up to larger enterprises, the upper SME segment of the corporate business, there we see, let's say, a very aggressive mobile market. There we believe there is a huge challenge where we are fighting strongly in 2021, and I don't see any reason why it shouldn't be similar in 2022. On the wireline side, we don't have that much churn, not in the SME and not in the wireline and not in the corporate environment. Mobile is for sure, let's say, the playing field where the operational competitors makes a difference on a deal-by-deal basis.
Okay. Thank you, guys.
Let me just add one thing.
Thanks, Eugen.
Let me just add one thing because otherwise Simon is going to ask me in Q1 why is this effect still there on the fixed voice line losses. It has two components. There's two components. One is landlines. You know, landlines only. These die out, quite literally. It's a demographic issue. But there is also customers opting out of a bundle with landline component, and that is going to stay. In Q1, you'll see it again.
Cool. Thanks, everyone. All right. Thank you, guys. Thank you, Simon. With that, I would like to ask Titus Krahn for the question. All right. We have to move to the next one. It's Luigi Minerva. Oh, okay. We go back to Titus, Bank of America. Hopefully it works.
Yes, it should work now.
Fine. Thank you.
Good afternoon, all of you. Sorry for joining from the phone without a video. I have just two questions both on the fiber side. The first one might be a little bit of a clarification. On the CapEx outlook for 2023-2025 and the difference between the best and the worst case. You're talking about CHF 400 million-CHF 600 million impact for these couple of years. Just as a back-of-the-envelope calculation, that's pretty much the difference for 1 million households between the CHF 400-CHF 500 delta between rolling out with P2P and P2MP technology. Just a clarification, where do we see the savings from actually rolling out to half a million of your households?
Are they set off by other elements or can you walk us through kind of this difference? Maybe a second quick question, just given that there would be probably 40%-50% of households depending on the actual rollouts still left after 2025, how do you look at those? Given they are probably more expensive to roll out, would a partnership with a financial investor, as in adjacent countries done, be actually an option or an opportunity for you?
Thank you, Titus. I think the first question on CapEx outlook is for our CFO, Eugen. The second question, well, 2025 outlook, how we continue is for Urs.
I'm happy to take the first question because it also kept us busy for a while. Your back of the envelope is right in principle. Your assumption that there are also other factors in play is also right. That is exactly why we gave you an indication of the fiber CapEx envelope going forward in the best and in the worst case scenario. I would like to encourage you to stick to that number rather than to the back of the envelope. I'm going to answer your question because the back of the envelope is the obvious thing to do. What are the factors why the back of the envelope doesn't work and the compensating factors?
One is the numbers we give you for the average cost of rollout in FTTS and FTTH is a typical FTTS household. However, in particular, in the first phase of the rollout, we have a number of so-called FTTB access lines, so fiber to the building. The fiber is already in the house. They are quite cheap to upgrade to FTTH point-to-multipoint, but they cost about the same to upgrade to FTTH point-to-point. Actually for these number of household connections, the upgrade price is much higher than the CHF 500 that we give you in the kind of typical FTTS to FTTH upgrade. That's point number one. Point number two is we already built a number of point-to-multipoint connections.
We saw it in some of the slides. If we ever had to switch completely to point-to-point, we would need to rework those point-to-multipoint connections that we already built. That's the second factor. There are three or four others, but that's the most important. These are the most important ones. Actually, very good catch, actually. The second question, was it financial?
The second one is for Urs.
The outlook after 2025.
Eugen wants to take every question. What would we do after 2025? We will certainly continue to roll out fiber networks in Switzerland. It's quite hard to judge how we will do it because it's open if we are in 2025, if we can do it in a point-to-multipoint architecture or even then we have to do it point-to-point. There is a lot of things open. But what I can tell you is we will continue to roll out the fiber networks, but we will do it in a way that we can digest it.
We actually don't need a partnership or an infrastructure fund which would help us to make this rollout as long as the whole situation is like it is today. We don't see the need for it. Even if we would have to have high investments, we could, we have a strong balance sheet as Eugen mentioned it before.
Thank you, Urs, and thank you, Titus. We move to the next question coming from Luigi Minerva, HSBC.
Okay. Yeah. Good afternoon, everybody. Thanks for taking my questions. A couple for Urs, probably. The first one is about staying on this 2025 theme. I just wanted to ask, now, you mentioned in your introduction that there's a series of initiatives which are currently small, but that perhaps can become material contributors to Swisscom in five years from now. I was wondering if you can just elaborate on that. If you were to pick, you know, one or two of those initiatives that in five years will be material for Swisscom numbers, which would it be?
Secondly, on 5G, I kind of ask you the same question every year, but I'm curious to see what are you seeing in terms of products and pricing for 5G. Essentially, you know, the question is whether 5G can really be the hope for the sector to see some pricing power in a sort of a stable way over time.
Perhaps the last question for Alberto on Italy. Of course, you mentioned the deterioration of the fiber prices EUR 30 a year ago, then 19, then obviously Iliad is there now at EUR 15.99. Now it's a fact that Iliad doesn't change their prices. The EUR 15.99 is there to stay. Does it mean that the Italian market is compromised without hope, essentially, unless there is a change in market structure? Thank you.
Thank you, Luigi.
Does it mean that the Italian market is compromised without hope, essentially, unless there is a change in market structure? Thank you.
Thank you, Luigi. The first two questions for Urs on adjacent businesses and 5G, and the last one, on fiber prices, for you, Alberto.
On adjacent business, you know there are two main elements. The one is all cloud-based solutions. Software-defined networks, cloud solutions, which are quite, let's say, close to our core business, but where you could enter in new businesses. Cloud-based business, software-defined business, SASE and all such things. I think that's one of the elements. The second element are more, let's say, fintech-oriented elements. We have a vertical where we are the outsourcer for Swiss banks. These banks, they will also go in a more cloud-oriented area. We have, as an example, a small fintech start-ups. Such start-ups could play a role in this vertical element of the Swiss banks.
At the end, I think it's important that the big growth potential they are coming really more out of the IT-related business than this, let's say, internet-oriented businesses. To the second question on the pricing on 5G. I don't know if I get the question right, Don. To charge an additional price for 5G, in my view, will be quite difficult mid-term. Because everybody has a, let's say, a strategy giving more for the same price. That means it will be hard to charge for 5G in addition. 5G has a lot of other elements. You can, in the B2B market, enter new spaces, private mobile networks, such things, vertical solutions, so more volume.
The whole IoT business, I think that is a potential. 5G has much more efficiency. The cost, production cost for a megabyte on 5G is lower than on 4G or 3G. It's intelligent to push 5G. That's a bit of my message.
Thank you, Urs. Alberto.
Okay. You know, as I was saying, I'm really convinced that the consumer wireline is not in a sustainable situation, that that's a transition. I also don't agree, Luigi, on the fact that you know, price is here to stay because the EUR 15.99 is a loss-making offer. Clearly, that's not a bold and brave move, but I think it's quite you know, a consequence by the fact that the growth on mobile customers of Iliad has been flattening, and now they are exiting growth. They do need to find a way you know, to get more mobile customer.
Since they cannot decrease prices for mobile customers because otherwise, you know, they will blow up because they will not be any more financially sustainable, they had to find something else. They, you know, they come up with this, you know, giving the fixed at cost. As I said, this is a loss-making offer. I really do think that, you know, this is just a transition, maybe 12, 18 months, but then prices will go up, definitely. Because at the end of the day, you know, you cannot stay, you know, with the offers that are loss-making. Also, I do believe that this move will not pump up their mobile sales. They will need to increase profitability. Thanks.
Thank you, Alberto. Thank you, Luigi. Next question comes from Steve Malcolm from Redburn.
Hi there. Can you hear me?
Yes. Hi, Steve.
Yeah. Hi. Good afternoon, guys. Congratulations, Urs, on a great stint at Swisscom, and I hope you get to relax in June and take it easy. Good luck to the new CEO. Hope he does as well as you've done. I'm gonna come back to Simon's questions on Fastweb, if that's okay, because I'm trying to sort of get my head around the revenue and EBITDA guidance for next year, given the way the numbers are trending at the moment. In Q3, I think you had a CHF 25 million regulatory settlement, which I guess will lap next year.
If I look at the Q4 numbers, I mean, the cost performance was great, but it seems like there was a few odd moves, particularly in other operating costs, which fell 14% in the quarter, having risen by about 4% or 5% in the previous three quarters. So can maybe just help us understand how those maybe odd-looking moves play out in 2022? Then just coming back to the revenue sort of picture overall. I mean, if you don't grow consumer and enterprise doesn't accelerate from this point, you're gonna have to grow wholesale 20-odd% to get to 5%. Is that right, or should we assume that enterprise can do better than the 7% or 8% you did in 2021?
Within wholesale, it feels like if you're swapping BTS revenues for ultra broadband wholesale, where you are reselling someone else's product, that's gonna have a detrimental impact on margin. I guess it all feels like, you know, the margin outlook is not so great next year, but clearly that's not the guidance you're giving, so maybe you can help us sort of understand some of those moving parts. Thanks.
Thank you, Steve. I mean, in terms of numbers, we've not disclosed concrete numbers on income from regulatory litigation. In 2021, I would like to hand over that question to you, Alberto.
I think that the answer is gonna be quite close to the one that I just gave. Again, you know, the revenues of consumer as the two sources of impact. One is clearly the wireline, where I say that I just said flattish. You know, hopefully we could do better than that. I think that it's just a consequence of you know, losing maybe some thousands of customers, but keeping the RPU of our customer base stable. I think, as I said, you know, more or less flattish. On mobile, we do think that we will continue to grow, you know.
Hopefully we will be able to repeat or actually to even get better since you know our sales are going well in terms of mobile. This will be you know pure growth on top of what we deliver. It's not you know. At the end of the day, also consumer has some let's say growth engines, and we want to try to exploit it. In terms of enterprise, I would say that our ability you know we outperformed our guidance in 2021. We have been growing at 8%. I think that in enterprise you know we are very healthy. You know we keep going to win bids.
The good thing is that we keep going winning bids, not only in the core services, we have already a good market share, but in the value-added services. Actually, since we have the highest Net Promoter Score in the enterprise, close to 80%, I think it's something that is one of the highest in Europe. We can leverage to have, you know, a strong and high market share in the core services like voice and connectivity, to increase our share of wallet with cloud, data center, managed services, security services. That's what we are doing, you know. I think that you can assume that also in 2022, enterprise growth will be, you know, outperforming.
wholesale, again, you know, for wholesale
Alberto, can I just ask, what does outperforming mean? I mean, does that mean 8% like 2021? I mean, is it?
Let's say that we have at company level a 5% growth. Consumer is not growing at that level, then the growth needs to come, you know, either from enterprise and wholesale. I would bet on enterprise because, as I said, I think it's one of the market where we are leader in a market that is growing, you know, significantly. That's my point. I'll finish also that wholesale is, you know, is a very healthy business as well because, you know, is the sunny part of the street of the retail. Retail is gonna be, you know, extremely competitive. A lot of new players in the market. A lot of new players that are growing their sales, like Sky, like the others.
You know, we can. If we were able to grow with roughly 200,000 wholesale s customers in 2021, you can assume that this growth will continue to increase also in the future. That's more or less where
Are you not?
The growth is down.
Sorry. Are you not essentially reselling fiber copper line, so the margin if BTS goes from 2,000 to 1,000 to 2,000, which is gonna be very high margin, obviously.
BTS has nothing to do with fiber copper. Fiber copper is just lines to
Yeah.
to, let's say, consumer. BTS are dark fiber backhauling that we are providing.
I understand.
So they-
The margins on that are very high, presumably.
Yeah.
I think the guide is that you would get less BTS, you know, connections in 2022 than 2021. That would be margin obviously.
No, I wouldn't say so. We have done 2,000. Let's say that also in 2022 we have something that stays between 1,000 and 2,000, depending on the rollout.
Okay.
We could be actually replicating also 2021 performance in the BTS.
Okay. That may be the same. You get the Ultra-Broadband is on top, is the way we should think about it.
Yeah.
Okay.
Yeah.
Great. The cost performance in Q4, the other operating cost down 14%, was there anything particularly unusual in that?
I would say that marginality on 2022 will be very close to the one of 2021. I wouldn't go really on the-
Okay.
fluctuation quarter-over-quarter, you know, a view on a year. Sometimes quarters are fluctuated.
Okay.
Also by mix of revenues. I would say that, you know, marginality should be following, you know, the trend that has been performing in the last years.
I'd take Louis's point on the regulatory settlement, but I think in Q3 you had another income of EUR 25 million-EUR 30 million. Should we expect more kind of one-offy kind of stuff to come in in 2022 to help the margin?
Yeah. I would say that, you know, all in all, I think that, again, marginality will be more or less the same as 2021. There will probably be an impact of, you know, slightly, you know, one-off, but, you know, at the end of the day, marginality will be similar.
Super. Thank you.
Thank you, Steve.
Thank you, Alberto.
Let me move to the next question. Josh Mills from Exane BNP.
Hi, guys. Hopefully you can hear me.
Yes, all good.
Brilliant. Thank you. Yes. Two questions from my side, one on the cost savings and then another if I can come back to this fiber debate. Going forward, you're maintaining the same level of cost cutting, kind of CHF 100 million a year, and you're saying that you can continue that beyond 2022. But within that mix, it sounds like headcount reduction would be less of a factor. And if you're hiring more IT consultants, et cetera, who are presumably on higher wages, where are the additional savings coming from? Is it more network side? Is it your own IT systems? It would be great to give us a breakdown of how CHF 100 million in savings this year compares to CHF 100 million in savings in 2023 or 2024, say.
On the second question, if I just were to go back to slide 37, where you run through the different best and worst case scenarios for point-to-point or point-to-multipoint. I think you've been very clear on the CapEx element, but what kind of revenue or EBITDA impact do you think you would see if you were only able to upgrade 50% of homes rather than 60% with fiber to the building? The reason I ask is, you know, net adds are good. You're talking about decent Net Promoter Scores. Is there actually any ARPU uplift or share gain opportunities as you roll out fiber? Sorry, one very final one, I suppose, on clarification around capitalized costs.
I think they were up quite a bit this year in Switzerland, so just wanted to understand why that was the case. Thanks very much.
Thank you, Josh. I think on cost savings it is a mix between Urs and Eugen, maybe.
Yes, I take the cost saving.
Okay. Okay.
High-level question.
Okay. Second question on the different scenarios and impact on ARPU is for you, Urs. Third question is on-
Oh, it's for capitalized costs.
Capitalized cost is for you. Eugen .
Let's take the cost from where are the cost savings coming. You know, at the end, from a high level perspective, it's digitalization and simplification. I show you in the presentation what we are doing in the technical department, consolidating platforms, phasing out old systems. That's one element. Phasing out products. All this leads to a simplification of our product. You can operate the company with less technical people and with a smaller field service or even also a smaller customer care. That's one element, a lot of different projects on simplification. The second one is digitalization. We can automate processes, also in the operation of the network. We can do a change management.
We can do a lot there. Also in the monitoring of end-to-end solutions. Then in the go-to-market shift to online to have a good mix between physical go-to-market and virtual or online. That's what are behind this CHF 100 million. We have there a lot of different projects which will help us to get the costs down. That was the one on saving. The second one on fiber. You know, we have today a footprint of 72% which has speeds more than 200 Mbps. That means short term, if we don't have a fiber to the home footprint, we don't lose at all in the retail market, short term.
We will be competitive with this footprint, but not long term. Long term, we certainly need fiber to the home. That's why we want to ramp up our fiber to the home footprint. On the one side we see that in areas where we have fiber to the home, that we can slightly increase the ARPU because of upselling, put them on higher tariffs. At the end it's always a question how competition will be in the turf where we make the rollout at the end. In the existing rollout, we were able to gain a bit additional ARPU. Maybe Dirk some words on this fiber ARPU topic.
No, it's exactly as you say. I mean, you're really, you know, I think wisely we built up the fiber to the street network so that we now have the 200 MB, you know, which at this point in time, for many households is a decent speed. You know, you can have a couple of HD, UHD streams, do web browsing, gaming, whatnot. Yeah, so, if you're not obsessed about super speed, then it's perfectly okay. Really, really. Yeah. I think we also need to look at, you know, the trigger points for changes in your broadband service provider is mostly, you know, events around your household.
You know, a marriage or divorce or, you know, you go abroad and you cancel the whole household and whatever. It's less so that you're like in the market and look for a better price. Yeah. As long as, let's say, as we always would say, never touch a running system, particularly in times of pandemic. We have seen, you know, if you look at our figures, we have seen in the last year, churn in Q3 and Q4 decreasing in broadband, despite of all the competitive activity that there is. Yeah. So it's really, let's say, gives us confidence that we have a good offer today. Which obviously is not only the broadband line, but the whole TV service around it, the whole service proposition and so on and so forth.
I think, you know, for the time being, we are well positioned. Obviously in the future, of course, we need to also continue to build those out.
Okay. On capitalized cost, why is capitalized cost up? The answer is simple. We have quite a substantial insourcing program going on as part of our CapEx efficiency program. There's an OpEx efficiency program, and there's the CapEx efficiency program. We have a substantial program of insourcing software development. By doing so, we can reduce the number of external parties we interact with. It's cheaper, it's better controlled, and it leaves a better quality. We insource among others in our software development centers in Rotterdam and in Riga. These people that we hire for software development first show up in FD, show up in gross personnel expense, and then get CapEx, because what they do is software development, and that goes into CapEx. That's the reason for it.
Thank you, Eugen. Thank you, Josh. I suggest we do one last question before closing today's meeting after three hours. Yemi Falana.
Hi. Yeah. Hi, thanks for taking my questions. Firstly, judging by your Q4 KPIs, it seems like your commercial traction in Switzerland has been improving. Could you perhaps provide some color on the run rate of your traction through the first few months of this year and perhaps a wider competitive environment as well? Secondly, following on from your comments on not needing a partner for fiber investment, while I don't necessarily want to ask for long-term guidance, is it fair to assume that CHF 2.3 Billion level is a medium-term CapEx floor with the dividend effectively setting the CapEx ceiling from here? Thank you.
Thank you. I think on commercial momentum, Urs and Dirk can jointly take over this question or Dirk directly. On the second question, CapEx outlook, I think that is a question you, Eugen, can take over.
Okay. With respect to the Q4 in the consumer market, you know, as you rightly said, it was an intense and, I think, very good Q4 for us. You know, we want to operate on the full year on the basis of that trajectory. Now, if you compare to Q1 or particularly January, then obviously, you know, you can't compare Q1 to Q4. We need to look at Q4 to another Q4, particularly because in Q4, you have all this, like, Christmas business, Black Friday promotions and so on and so forth. Yeah. Business, let's say, has been a bit moderate, but as moderate as it always is in January.
You know, we are that much I can say, you know, on our planned trajectory overall for the year in the first months of this year.
Seems to be the same in the U.K.
On CapEx outlook, obviously it's much too early to talk about CapEx 2025 or beyond. You mentioned that. The only thing I would say is obviously the maintaining our dividend outlook is a major factor in our determining the rollout program speed now or be it in, you know, two or three years. It will always play a major role in these considerations.
Thanks, guys.
Okay. Thank you very much. At this point, it is from our side. Thanks for your participation, and attention. Have a nice evening. Thank you. Bye-bye.