Good afternoon, ladies and gentlemen, and welcome to Swisscom Full Year Results Presentation 20 20 this year in a visual format. My name is Louis Schmidt, Head of Investor Relations. We start today's online meeting with the program and a short introduction on Page 2. Our CEO, Ulf Sheppi, presents in the first chapter the highlights, the main achievements of last year commercially, operationally and financially. In Chapter 2, he gives a strategy update and elaborates on the Roadmap 21 and beyond.
In Chapter 3, our CEO gives a short overview of the achievements 2020 within Swisscom Switzerland before updating on the network developments and ambitions, explaining our roadmap of activities along our strategic roadmap for B2C and B2B and presenting the operational excellent results and plans. Alberto Calganio, COO of Fastweb, We'll then discuss in Chapter 4 the industrial and financial results and performances of our Italian business and its plans going forward. 20. After Alberto's presentation, Mario Rossi, our Chief Financial Officer, will present in detail in Chapter 5, our financials 2020, 1, including the outlook for 'twenty one. And in the last Chapter 6, a wrap up with some final remarks from our CEO, Urs Scheppi.
After the presentation of approximately 90 minutes, we will then move into the Q and A session, which will start at around half past 3. If it's earlier, then we start directly. For this part, Dirk Witspitske, Head of B2C Swisscom Switzerland and Urs Wehner, Head of B2B Swisscom Switzerland will also attend and support us in any specific Swiss questions. With that, I would like to open officially today's meeting and hand over to Urs for his presentation. Urs?
Yes. Good afternoon, ladies and gentlemen. I'm happy to present you good and solid results of Swisscom. We have a EBITDA of 4,380,000,000,000, so stable compared to previous year. We have a free cash flow of SEK1.7 billion.
So our dividend is well covered, and we have a good and stable market performance. So overall, a good and solid results. If I go to our highlights, I just wanted to point some of them. The first one is our leading network. So we were able to win all the mobile tests in Switzerland.
2. So we have a high performing network. We also showed our leadership on fixed 1 on fixed net. So we were able to have a pilot on our network where we transported A bandwidth of 10 gigabits per second in our environment, fiber environment. So another example, it shows our performance on the technology side.
20. On the customer side, customer experience side, we have good and strong net promoter figures, percent. Very high figures in B2B, I would say, one of the highest ever and 22nd strong performance in SME and also in the retail market. 20. On ICT, we were able to show our leading position.
So we have a broad product portfolio in the B2B market, 8, which includes cloud solution, security solution and a lot of Specialists position ourselves as the number one cloud provider with a hybrid cloud strategy in Switzerland. 18. On Fastweb, certainly another highlight, we were able to grow. We have percent. Strong growth approximately 4% to 5% in a very competitive Italian market.
So good performance of Fastweb. And maybe the last point to mention on this slide is our sustainability road map. So we were ranked as the number 1 company, telecom company worldwide on ESG. So It shows that our ambition also results in a good ranking. We were also the 1st company in Switzerland list 20.
The company which published a green bond, which also underline our strategy of sustainability. On the next slide, Slide 5, percent. Some remarks to our performance during the COVID crisis. So Swisscom is resilient. We were resilient in this COVID crisis.
We hadn't any problem We're always very performing networks even with a much higher load during the lockdown phase. 2. And it shows that our investments looking forward, investments were good. So we had enough capacity in our networks. Also on the customer side, we performed well.
We get very good feedbacks from our customers during the COVID crisis. We were very flexible. We helped Our customer to install home office solutions as an example. We helped customer which were blocked percent. Outside Switzerland with roaming reduction, roaming rebates, which actually results then also in a good net promoter score.
COVID has not only caused some disruption In the economy, I would say COVID also brings for a company like Switzerland percent. A lot of chances. So what we certainly get is a push in digitalization. So digital transformation 20. It is an opportunity for a company like Swisscom.
I will come later to it. And certainly, also the reputation of telecommunication companies during this crisis went up. I think the whole population remarked that 20. Without telecommunication, such a lockdown wouldn't have worked. So it shows the importance of our industry.
3. On Slide 6, some remarks to our market performance. So If you look to Switzerland and if I have to summarize it in one word, I would say flat or stable. So we have from the subscriber side, also from the market share side, Approximately a stable situation. It shows that the market is totally saturated and that we have a kind of washing machine at the lower end of the market.
But Swisscom performed well. You see on postpaid in the Q4, we were able to have net adds of 31,000. Percent. On TV and broadband, we were flat. And on the right side of the chart, you see also that the market shares, percent.
So good performance in Switzerland in a very promotion oriented market. If you look to Italy, you see that there we had a very strong 4th quarter 20. That we were able to have a good growth on mobile and on broadband. So it shows that Fastweb 22. Here on this Slide 7, our key financials.
What you can say is actually that we have a stable EBITDA. Percent. And on the lower line, you see the development of the whole group. So EBITDA compared to previous year. In Switzerland, Switzerland, it was minus €19,000,000 and Fastweb had a growth of 38 €1,000,000 which results overall on an underlying performance approximately at 0.
The main effect on it were in Switzerland. We were able to decrease our cost indirect cost by 129 €1,000,000 We had a better direct cost because of the device coupling of 66,000,000 And then, servicing slightly better subscriber acquisition costs by 19,000,000 and then some other effects, which results in this minus €19,000,000 EBITDA in Switzerland. Service revenue is mainly impacted by pricing by the Arceo mix, where we have a better dynamic in the lower end of the market. That's why we have some dilution of the revenue mix in the retail market. The service Revenue or the net revenue overall, you see it is SEK 11,100,000,000.
The main effects on it percent. Our pricing and also some roaming revenues, which went down because of COVID. But overall, the major driver behind it is the pricing in Switzerland. CapEx were in a region of $2,200,000,000 They are lower than previous year, but here 20. I have to mention that in the previous year, we had the spectrum auction where we had to pay you nineteen million for the 5 gs spectrum.
If you would take this out, you see that CapEx are stable to previous year. Operating free cash flow is at SEK1.8 billion, and we were able also to reduce our net steps. So overall, good and strong performance for the group. 3. Some words to our strategy.
So our strategy works and some messages to our environment. I think these are not new for you, but it's good 2. To have them in behind, our sector is a CapEx and will stay a CapEx intensive business. So the business and the competition will keep CapEx high. The main challenge is how do we monetize this CapEx.
We will come later to it. That's only the major challenge. And because we are in a fixed cost business, market shares are important. Percent. And that's why we are fighting to defend our market shares.
Digitalization is an opportunity for our industry and especially also for Swisscom Switzerland. In Switzerland, we have 20. Good environment, but high competition and maybe as an opportunity, that's also because of percent. Strong positioning of Swisscom in the B2B market, there are opportunities in the ICT market.
20. Italy,
Alberto knows it much better than I, but Italy is a price sensitive market, percent. Very competitive market, but also there, we have opportunities to increase our market shares and to have growth in the B2B market or in the ICT business. The fundamental or the assets of Swisscom are on this chart. I don't want to read them all. Percent.
But certainly, our leading market position with the clear market leader on market shares in the region of 50% to 60 percent in B2B, even much higher market shares. Our strong brand, we have a strong credible brand. We have a good reputation. This is the base for upselling and cross selling. We are a technology leader, a very innovative company.
And in Italy, we are certainly a successful challenges. So these are a bit the fundamental of our business on which we can build our strategy. Here are the main pillars of our strategy. Actually, summarize it in a very simple way. Our ambition is to have the best customer experience.
This is a combination of an excellent network percent with innovative products and an excellent customer service. These three ingredients together bring a 1,000,000,000,000,000,000,000,000 The second topic is an important one for our industry, but also in the situation of Swisscom as the market leader, where we have also some imbalanced market shares in the Swiss market. That's operational excellence. So we have to work on our cost structure. The management is very committed to work on operational excellence.
And the main question is what are the main pillars percent to increase our efficiency. And that's certainly On the operational side, do it better, do it more efficient, do it leaner, that's one pillar. The second pillar, that's digitalization. There you can there we can do a lot through digitalization. And also smart Investments is an important pillar for this operational excellence.
Then the 3rd pillar of the strategy in Switzerland is creating new growth. And that's mainly In Switzerland, if you look outside the telecommunication business, where each Swiss francs in ARPU counts, It's the IT business. So in IT, we can do more. If I look to our cloud business or security business, 20. We were able to have a growth which is slightly below 10% in the last year.
So that shows the momentum what we can get there. And then certainly, the 4th important pillar of our strategy, that's Italy, where we have a successful challenge, which can increase market shares, which can become which can have a stronger position in the wholesale market but also in the B2B market. 20. Here, some messages to our road map for 2021. I don't want to go in deep in it, but you see it's a combination of markets, leading market position defending our leading position in the Swiss market through attack and defense strategy.
Percent. Defense mean on our core brand through a superior value proposition to get a high customer loyalty with a good ARPU 2 in our Swisscom community. And then on the attacking side with the second and third brands percent to be present to have a strong position in the low end of the market in the more price sensitive market. Innovation will be important to differentiate ourselves. And transformation 22.
It is also important because with this, we will be able to reduce our cost structure. $1,000,000 Shareholder numeration is important. We know that we are a dividend stock that we have to 2. So that's a bit overall 2019. The roadmap, some remarks to our innovation roadmap.
Innovation is an important topic for us because of growth, but also because of reputation and differentiation in the market. 20. You see on this slide the areas of innovation for Swisscom. It's Not astonishing that network and infrastructure remains an important topic for innovation. We have we want to be leading on the network side.
That's why we also are looking to the next chamber of innovation. Security is important in a connected world. In a digitalized world, security It's extremely important. I think I don't have to mention it. And it's a battle, an uphill battle.
Each day, the Attackers are more intelligent, and so you have to ramp up your security capabilities each day. Also here with artificial intelligence and such things we can do a lot. And that's the 3rd innovation area. We have a strong artificial intelligent department and strong capabilities in Switzerland. We can use artificial intelligence not only for new products, percent.
Internet of Things is important and entertainment is an important topic. You certainly remember that we last that last year, we launched 5. Our blue offer, that's a converged offer in the entertainment market. The market is coming together more and more 1,000,000,000. And Swisscom has a strong positioning in this market.
So then also digitalization, digital business as new business opportunities and digital Swisscom 2019. On our corporate responsibility. So we have a corporate social responsibility strategy. Percent. Sustainability is an important topic.
And there, we have a lot of initiatives to drive these goals, 18. Our people to avoid the digital divide in our population. 20. And Swisscom is, I would say, the biggest education company on this topic. Just to give you an example, last year, we had 25,000 people which visited the lessons of Swisscom how to use These new tools in our industry.
Reducing CO2, that's clear there. We have a lot of different initiatives. We have roadmap also to decrease our consumption of electricity. It's important you can also reduce then the cost. That's clear.
And on the more on the Switzerland level, We have the ambition to ramp up this broadband networks. Our goal is to have a coverage of 60% 5. Some words to Switzerland. So the achievements in 2020, quarter. Good operational performance on network side, but also in the market.
On the network side, some figures. We have today a footprint of over 80% in the broadband market, over 80 megabits per second. And we have a footprint of 32% for speeds 1,000,000,000 up to 10 gigabits per second. And this is increasing, I will come later to it, year by year. We have mobile 5 gs percent.
Population coverage of 96% population coverage, It's on 5 gs wide with this dynamic spectrum sharing. And we have more than 500 communities in Switzerland with 5 gs fast coverage. That's the 5 gs where we use this 3.5 gigahertz to deliver even higher speeds. What is also astonishing was our pilot, which we made 2. With in train coverage, so we made a 5 gs demo, and we were able to get a speed on 5 gs of 1.2 Gigabits per second in a train.
That's astonishing or that shows actually the potential of this 5 gs technology. We are phasing out 5 2 gs now at in this year, in the beginning of this year, At the end of our Q1, we will do the phase out and then we can use the spectrum for 4 gs and 5 gs. 3. On B2C, maybe some remarks. It's important to increase Our converged offer, FMC penetration, that's an important initiative.
We have there a good product portfolio with our in1 home and in1 mobile value proposition. Approximately 70% of customers are on this in 1, and our ambition is to further increase this penetration. 19. In B2B, certainly, cloud business is also was an important topic and will remain an important topic. On the financial of Swisscom Switzerland, I already mentioned some of it.
We have an EBITDA of SEK 3,500,000,000 percent. Compared to previous year, it's approximately stable. The main dynamics is lower service revenues and also lower costs, which brings us to approximately flat situation. Our ambition is also for the next year to decrease our costs on a yearly basis in the region of 100,000,000 plus And if you look back to the last year since 2017 up to 20.20. That means in 4 years, we were able to decrease our costs by more than €400,000,000 in the region of €500,000,000 To the roadmap on our network side.
So our ambition is 2.5% to have the best networks. It's a core pillar of our strategy. We have also vision. You see it on the low on the lower part of this slide, on the right side. We are convinced that mobile and fixed networks will converge more and more.
And our ambition is to deliver a seamless network between these two access technologies. On the fiber side, we will invest strongly in the rolling out of a fiber to the home. Today, we are at 30%. We will go up to 60% up to 25%. Why we are doing this?
To be more competitive on the one side against cable operator. But other points are also an increased Net Promoter percent. Score on fiber network to net promoter score is higher. We are also able to have a better ARPUs and lower churn. So also a lot of market aspect shows that 5 gs investments actually has a value.
On mobile, our ambition is to roll out as fast as possible the 5 gs networks. We are challenged 20. In Switzerland to roll them out because there is a lot of opposition against building 5 gs antennas. So the whole market is challenged. But mid term, long term, I'm convinced that we will be able to get a much better momentum on this rolling out of 5 gs networks.
19. Here, and I think that's an important chart, you see our ambition in the network rollout. 20. So in 2021, on the ultra broadband network, wireline network, our ambition is to percent. Increased the footprint to 90%.
Today, we are at 80% to 90% for speeds above 80 megabits per second. Percent. And on high speed fiber to the home technologies, we will increase our footprint from 32% to 39%. On mobile, you see also that we will further increase our percent. Population coverage footprint on 5 gs.
On 5 gs wide, we will have a percent. Population coverage of 99%. Today, we are at 96%. And we will further extend 5 gs plus footprint. So these are important initiatives for us.
Here, some figures. I don't want to go in detail in it on the value of the ultra broadband rollout. You see in 'twenty five what will be the mix of our technology. So 60% will be on fiber to the home, 35% will be on fiber to the street with in combination with GTOP fast technology. So we are able to have in the 35% footprint speeds up to 500 megabits per second.
So that means we will have in 2025, percent. 95% in Switzerland, which has speeds up to 500 megabit and only about 5% with speeds in the region of 80 megabits. So a very fast network, and you see the evolution in the next year on this slide. You see also the effects on this strategy. You see the take ups in broad in brand penetration if we make this rollout to faster networks.
That means in areas where we roll out these networks, We were also able to gain some penetration increases. Some remarks to the architecture, how we do this fiber to the home rollout. So in the past, we had an architecture of point to point because we were in the city with a very high density. Percent. Now we are going more in rural areas, and we use the point to point technology.
This technology, That's the established technology worldwide. 95% of the countries are doing the rollout on point to multipoint architecture. This technology or this approach is faster and cheaper. And we can use actually our investments in fiber to the street. So we are doing an upgrade of our fiber to the street network 2, Fiber to the Home.
So we will be with this approach much, much faster to increase our Fiber to the Home footprint. And you see also that we are able that we are willing on an opportunistic approach to cooperate on a case by case. And we are not or we have not a strategy To be a buyer of such infrastructure, we want to have our own networks. 20. But we are willing to cooperate if this makes business sense for us.
Now some remarks to the commission competition commission in Switzerland. So at the end of the last year, they actually in the center office. And so if we build out on a point to point on a point to multipoint architecture 2. As it is on this chart on the left side, if we do it in a such an architecture, a rollout, The commission the competition commission asked for a layer 1 access for our competitor in the center office. So that's the main request of the commission competition.
That's a very special case because we are offering already today access on a product, on a wholesale product on a nondiscriminatory way to all our competitors. 18. They are asking for a Layer 1 access. We are appealing against this and also against these precautionary measures because we are convinced percent. That we have a good solution, a good wholesale access and the point to point multi point to multipoint technology, that's the common architecture in the whole world.
So I think we have good arguments to fight against this request of the competition commission. We don't have clarity up to now. Percent. I think in the next weeks, we get some more clarity on this precautionary measurements or measures. And then we have we will certainly communicate the next steps.
But I think we have strong arguments because that's a common approach how to roll out 5 gs on Page 22. I can't be short, and we are also proud. We won all the mobile tests In Switzerland, you see all the claims on it. And we were also able to have the largest 5 gs coverage in Switzerland, so we are here on a good way. 6.
On this slide on Page 23, our vision on the development of the networks. So this simple converged network, which is powered with cloud, fiber to the home and 5 gs. That's our vision. This will bring us a lot of advantages. It will reduce the complexity percent.
With our networks, we can do legacy phase outs, which also reduce our costs. Percent. And it will also bring us a higher reliability because we have less complexity, more standardized network components in it. To the B2C business, Here the road map, I don't want to go in deep for all these points, but here you see that the main focus. 20.
At the end, it's simply said we have to protect Our customer base, that's the value based management of our customer base. We have a multi brand strategy. This strategy G works. We have to increase our performance in the lower end of the market. And with entertainment, we will be able to differentiate us even more.
We have by far the best TV proposition by far the best entertainment proposition and that counts. Certainly, also on the multichannel Evolution there we can do more. The different channels, physical channels and online channels are InOne is our key product in the retail market. So we have 2 main families in it, InOne Home and InOne Mobile. And you see the penetration on the right side of the chart percent.
Of these projects, we have 60 76% in one home penetration and percent 68% in 1 mobile penetration. So it shows the success of this in 1 mobile product family. Convergence is important. It's important because we can decrease churn. You see we have a churn in converged office of 6.9% and we have a better ARPU.
So that's we are pushing that's why we are pushing converged offers. And we are in the reach of 40% to 46% converged penetration. Entertainment, I mentioned it before, that's an important topic. Last year, we launched our new product line, Blu. That's a combination of Blu TV, of Blue Plus.
This is the content the pay content business with sports, with movies, where we have also a lot of exclusive content. And this proposition had a very good start. So we have a high net promoter 6.4 we have better sales figures on content business and we can even enforce our percent. Smart percent. Life or smart home, that's still a small plant, but it's astonishing the take up of it actually.
2. If you look on the right side of the chart and if you look to the connected devices with our Swisscom home app, You see that we were able to increase it by 200%. We chose that there is upcoming, a take up in Smart Life. And Swisscom, which is in The majority of the households with the platforms which we have, the Internet platforms, can be a platform for smart home application and that's why we are pushing it. You see also that The monthly active users of the home app went up by 40% and that shows that if we manage Security, security is an important topic.
And there we have a lot of initiatives. We were able to create growth. If you compare 2016 to 2020, you see that percent. We were able to double the revenues. They are still on a lower level, but we are growing there.
And it's not only a revenue topic. It's also a kind for differentiation ourselves in this market. $1,000,000,000. That's our Atakture brand. We have Successful year behind it.
We had also a good January with Wingo. And you see the penetration of the 2nd and third brands. So 2nd and third brands are working much better in the mobile space percent. And in the broadband space, so the penetration of the second and third brand is at 18% in postpaid percent. Mobile and on broadband, it's growing, but it's still only at 4%.
The roles, we define roles for these different channels. The shops more with And then the online channels also with the My Swisscom app, more for digital self care and field force then certainly for more complicated actions. But the field force intervention are really going down year by year because we have more simple products and more stable products. On B2B, not a lot to mention. I already told it here.
It's important to increase our positioning in the ICT SME market. We have now a good product portfolio. We have to penetrate this product portfolio in the SME market. Percent. Also, cloud security remains important, but also omni channel approach is important.
On the B2B transformation, we are on track. So we have there a program So we have to work on the efficiency side. We are on the way and this program is on track. Eighteen. Some remarks to our figures service revenue figures in the B2B market.
On the left side, you can see that we are able to defend our strong market position in the B2B market. The revenue generating units in the B2B business are stable. We have 2,500,000 revenue generating units, stable, percent. But we have high competition in this market. And this leads us actually to an erosion of service revenue, which you can see on the percent.
So we had 6% erosion in the service revenue business. And we have an ARPU of CHF33 in the mobile business. But we have a lot of also sense in it where we can differentiate ourselves. And that's the reason why we are able to 4G Power Market Share Plus Minus Stable in the B2B market. With new technologies like 5 gs, Compass Networks, IoT solutions.
I'm convinced also in combination with our IT capabilities 5 gs here. What could be such potentials? This campus networks Industry 4.0 was a buzzword. There we see opportunities, this mobile private networks. This will not explode, but this will be a project business case by case.
And I'm convinced In 5 years, we will have here a much bigger business. IoT is growing. We are the leading IoT percent. A provider for these smaller value added resellers or value added companies, it's a low margin or low ARPU 2 business but a high volume business. On IT, 20.
On the bottom of the right side, you can see where we are in, what are the Swisscom initiatives 20. I already mentioned them that the most important is cloud security antenna this SME ICT offers. 3. End to end solutions are important in the B2B market because this differentiates ourselves. 20.
This strategy is working. That's why we are able to defend also our high market share in this B2B market. Percent. And now I would like to come to the end. You see the proposition in the SME market 2, what we are doing.
And service, that's important to say in the B2B market, Not only products and network is important, extremely important is the customer service. And there we are certainly strong. We have high capabilities to serve our B2B customers and that's an asset which you can't actually copy in a very short term. So with this makes us also resilient to competition. 2019.
On operational excellence, I already mentioned it. It's important. We are committed to do it. 20. On this slide, you see our solid track record, the savings, the achievements and also our ambition for the next years.
So we are convinced that we can deliver percent. Cost reductions in the region of NOK 100,000,000 also in the next years. Here you see how we will do it. It's a combination of different elements On the network side, on operational excellence, but also on the way, how we collaborate percent. Good.
This was a bit the introduction. Now I would like to hand over to Alberto. Alberto, please.
Percent. Thank you, Urs, and good afternoon also from my side. I will go directly to the next slide, please. 20. Basically here you see our achievement in 2020.
2020 has been clearly an exceptional year. Also, Italy has been impacted in a very severe, I would say, way from COVID. But I would From what concerns Fastweb, we were able to manage and transform 20. An exceptional year into a normal year. We achieved all our guidance.
We have been able to grow across all segments from consumer to enterprise and to wholesale. Especially in enterprise, we are continuously leading over the market with the market share that has reached percent. Approximately 34% and everywhere all across markets, we have the best percent NPS in our territory. We are quite a unique, if not the unique, let's say, case 20, where we continue to grow in a very challenging market. Percent.
With the Q4, we achieved 30 quarters of consecutive growth, and we are the only one, At least in the last 5 years in Italy to have achieved such growth, but I bet also that it could be the same if we 5 gs and large the scope of the analysis. Vis a vis our ambitions in infrastructure, our 5 gs FWA rollout is fully on track with approximately 200 sites activated. Same thing for our 5 gs mobile rollout with approximately 700 active sites. And also with FiberCorp, FlashFiber is finalized in the last pieces of the network and in 2021 FiberCorp will take up with the 13. On the other main objective, which is to become an infrastructure OTT over the top, We have completely merged the cloud company, Catawade, that we have been acquiring in 2020.
Also, we have launched the 5 gs fully digital FWA services, and also we have percent. Accomplished the purchase of 70% of 7 Layer, which is the 2nd company that we acquired that specialized in security. If we move to the next page, please. And if we transform such, let's percent. Market KPIs into financial and quantitative, I would say, KPIs.
We can see that Overall, the broadband performance is quite strong, so plus 4% year on year. Clearly, we are much more interested in the ultra broadband where the growth has been significantly higher. 20. Today, roughly almost 75% of our customer base relies already in ultra broadband technology And also our mobile performances has been continuously growing, And we achieved a 12% growth year on year with the fixed to mobile convergent penetration on our 5. And wholesale, we are keeping strong momentum.
On enterprise, we have percent. Grown our revenues by 5%. Also, we have an NPS that is percent. Very, very high, almost 80% and has grown over 15% over the year, and we are keeping in acquiring new contracts as it's happening since a lot of years. In the wholesale, also this is becoming A very strong engine for our growth.
We have been able to grow our ultra broadband lines that We provide to wholesale contracts by 35%. We have also been able to doubling the revenues basically generated by this ultra broadband wholesale business. Please, if you go to the next slide. If we look also financials, I think that are following the good momentum into of the operations. Percent.
Revenues growth by 4% in every single segment, so both wholesale, enterprise and consumer. 2. If I look at just the Q4 result, you can see there is always, let's say, a minus in the wholesale segment, but has specifically to do with the dynamic of the BTS network rollout in the fiber backhauling and Back in the 4th year of 2019, there was a strong VTS rollout. So it's, I would say, simply You know a dynamic. What is important that in the year we have been able to grow.
As far as it's concerned, EBITDA. Also here, we fully achieved our guidance with a 5% overall growth that is coming from every segment. Also, I'd say that in the free cash flow proxy KPI, we have been able to grow nice 20 and to post almost a €50,000,000 increase year over year at operating free cash flow proxy. 22. If we move to next slide, please.
This is our page on how we'll see 2021 and clearly beyond. We have 4 objectives. The first one is to be and to offer the best performance everywhere, so to be the best network everywhere. We will clearly concentrate not only on our historical, let's say, fiber network, but also we leverage our new 5 gs FWA network, the FiberCorp venture and also our 5 gs mobile. When it comes for the enterprise, clearly, there we have a strong opportunity because we will expand our ability to, let's say, attack or intercept the share of wallet of our established customer base.
And so there will be possibilities to further grow and accelerate actually the growth in this segment. Also for the wholesale business, as we said 2020 has been a very strong year in growth, especially in the ultra broadband wholesale business. We believe that this growth will continue and actually percent. Also in 2021 and the following years. As for the consumer, finishing the 4th point, We do expect also to have the similar positive impact of having the best network.
And clearly also here in the consumer, we are more than confident that we will be able to offer the best customer experience here in Italy to further increase the gap between our NPS and the NPS of all the others in Mexico. 18. Now if you move to the next slide, please, I'll do a deep dive for each of the 4 pillar. At Page 48, you can see our ambition and how we intend to deliver the largest 12,000,000,000 of the Ultra Broadband Footprint Network in Italy. You know already our FTTH, 22, let's say, ambitions, which is the combinations of our network and the fiber copper network.
22. But then you also see that for us will be extremely important the new rollout of 5 gs FWA with almost €4,000,000 coverage already in 2021 and then the development of the following years to reach €12,000,000 in 2024, which represent the 100% of the gray areas and the 50% of the white areas. Also 5 gs mobile will be extremely important for us. We have a long term ambition of coverage of 90%, 20. But already in 2021, our coverage will step up rapidly, reaching 22%.
What is important that is to underline that we'll be the only one in Italy, the only operator that cover 100% of black areas, 100 percent of gray areas and 50 percent of white areas. We will do all these projects within our CapEx 10. That is as usual in the region of €600,000,000 clearly with the in the next years 5 with more, let's say, portion that will be devoted and allocated to FWA and 5 gs mobile. If you go to next slide, please, here you can see the our next generation 2025 project, which will be a key differentiating factor in our B2C. We want to experience.
So we will have we will attack the high density urban areas, as we said, with our offers in FTTH. But we will have a killer application in the gray and the white areas with the ultra WA because this is a technology that has definitely fiber like performances and allows us Please, we can go to the next page. As you can see, 2021 will be extremely rich 2. In terms of product roadmap for the next mobile offer, so the 5 gs, We have launched already 5 gs clearly depending on our coverage. We now are covering 4 major seats, including clearly Milan and Roma, but we will progressively expand the coverage nationwide.
On the fiber to the home footprint, we have more than double percent. Our performance is because now we are the only provider to offer 2.5 gigabits. Basically, we move from the concept of 1 giga per family to the concept of 1 giga per person is already available in 4,000,000 households in the, I would say, in the 30 main cities of Italy. But also in this case, we will percent progressively this product. Last but not least, the FWA product.
As I said, this for us is something unique because in the gray and the white areas, the average performance of The existing technology is quite a tool, so in a range of probably 30 to 40 megabits. 20. Here, we will be able to offer or we are already able to offer a Giga offer. We just eighteen. So we need to have quite established customer base in order to have solid data.
But today, the average of the customers that are using this service is around 600 megabits. So it's another quarter of magnitude. We have launched the first 50 cities. We are targeting 500 cities by the end of 2021, and this will become 2,000 by the end of 2024. This service is is fully digital.
So basically, it's really one click services because we are aiming at get another the top type of experience. So it's not so one click, let's say, onboard process, but the most important thing is that we are able today to deliver in one day the activation, which is something that nobody else can assure on the wireline space. I would say that all in all, we are keeping our Our strategy of fully transparency and to be the champions of the customer, so that there are no extra charges, no hidden costs, no migration costs, no contract obligation. And also this is extremely important to, let's say sustain our superior Net Promoter Score and our reputation and trust vis a vis the other competitor. 22.
If we can move to the next slide, please. Here, it's just to remind our percent. Strong positioning on the B2B market. Remember that overall today, We have a market share of 34%. I'm talking about the big enterprises in Italy.
If we just consider the public administration, this market share moves from 34 to 43. We have the highest Net Promoter Score reputation in the market, and we have the best team over 500 professionals that are 20, uniquely and exclusively dedicated to this segment. The good thing is that we are in 2020, we have now other core competencies as we bought 2 of the most interesting companies in the Italian space. 1 was Catawain that is and has, let's say, has been specializing in the cloud services now is fully merged with Fastweb. And also we have acquired 70% of 7 Layer, which is The leader in Italy on the security, cyber security.
This for us has a unique strategic value because it gives us the possibility to increase our share of wallet in the 4. But in the future, today we have already our order book that approximately are coming 50% from value added services, but we expect percent. In the midterm, this 52% growth up to 70%. Finally, there is a huge opportunity for us in the enterprise $1,000,000,000 which is represented by the mobile market. Today, this market accounts for roughly 1 €1,000,000,000 and these divided by just 2 operators.
With the 5 gs, we will launch the services 21. And given the reputation and given the strong customer base that we have on the fixed, we do believe that we will be able 2. To rightly gain market share also on this specific market and in the long term, We believe that 10% market share is achievable. If you move to the next slide, 6. We now consider the wholesale business.
Today, we are 18. Already the 2nd wholesale operator in Italy with more than €260,000,000 revenues, 15 market share with more than 10,000 BTS already $5,000,000 was happening in 2020. We can in the wireline space as we can provide not only our network, but we can combine and bundle also the network of others wholesale provider. In the long term, we will continue to exploit this ultra broadband volume business percent. It's a opportunity together with a continuous scale up of the backboard and all in business.
We do believe also that we will be able to reach new 2000 new EPS in 2021. And also we are already targeting at beginning from 2020 2. Also to be an MVNO wholesale player in the Italian market. It will we will need this year to prepare ourselves in order to be fully operational, but 22. We are already targeting and put this new opportunity in the radar screen even if it will be from 2022 onwards.
12. As into a wrap up and guidance, I think that we are fully on track to deploy and to be the largest, Let's say, ultra broadband player in Italy in terms of network and also in terms of wholesale opportunity. And clearly, we want to exploit such superiority of our Our network, not only in the wholesale space, but clearly also in the consumer to our retail business unit and also in the B2B. Nevertheless, in B2B, we do believe that in cloud security and also in the 5 gs Mobile, there will be a strong, strong, strong case. We have prepared ourselves 21.
To be fully operational in these segments starting from 2021, We have achieved our strategy. Now it's just a matter of execute, but we are really confident in delivering growth in this space. We will continue to boost the wholesale business as we believe there is a strong opportunity for that. And also we believe that with the network that is becoming stronger and stronger and deeper and deeper every year, We will be in a position to defend our leadership and actually to accelerate and strengthen our leadership in the wireline consumer business. If I put together all these, let's say, features into some financial guidance for 2021.
We are confident to reach a guidance that for 18.5% growth in revenues and the 5% EBITDA growth in the EBITDA with the CapEx envelope, which will remain, as I said before, stable. That's all for my part, and I leave the floor now 2, Mario. Thank you.
On my side, we can present a set of numbers, 18, which are in all aspects in line with our guidance and our expectations. On the revenue side, The underlying revenue declined by 2.3%. And I give you some explanations on this busy slide. On the service revenue decline, I will come back on the next slide. On point number 4, the solution business in B2B, We saw a flattish development of the solution business at the amounts of roughly SEK 1,060,000,000.
We saw a nice growth in cloud, data services and UCC and security, which was overcompensated by lower hardware revenues. On 0.5, wholesale, we realized quite a strong Q4. We saw growth from MD and O Services, Broadband Connectivity Services and Infrastructure. On 6, this nice and steady growth from Fastweb. Alberto Already explained the decline of €5,000,000 in Q4 coming from extraordinary high revenues in 2019.
Consumer revenues grew in Q4 by 1.4% and the Enterprise segment by 4.7%. The segment also showed minus €57,000,000 There are two main reasons. In 2019, we realized a large project construction project in CapEx of around SEK 40,000,000 very low margin. And secondly, we saw the phase out of the terrestrial video broadcasting Swisscom broadcast of about CHF 10,000,000. That's also high margin business.
5. Some explanation to the service revenue development in Switzerland, which is overall in line with prior year but with different dynamics. The blue one shows the B2C. On the right hand side, you see the different compositions. Fixed voice line loss and convergence as expected lower than in the prior year.
But the number of change in revenue the impact of change in ARGEO mix increased by €66,000,000 to €91,000,000 twothree of this impact comes from wireless. There we see the growth as explained by Urs of the 2nd and 3rd brand, which creates an ARPU dilution. We see ARPU dilution through promotions and quite a lot of ride gradings in our customer base. 1 third comes from the wireline business. NOK 10,000,000 is impacted or is the impact of a lower customer base.
And then we had a price increase in 2019, which amounted to CHF 11,000,000. The roaming impact is CHF 28,000,000. Percent. Thereof, COVID impact is SEK 18,000,000. In B2B, We see an overall decline or a lower impact from price pressure of 120,000,000.
One third comes from the corporate segment and 2 third from the mid market segment. The impact is SEK 78,000,000 lower than in prior year, but we expect price pressure to remain high also in 2021. I would say overall, we have met our costs, saving targets in 2020. Goods and services are €110,000,000 lower than private year. The main elements of the Q4 developments are the following.
In B2C and B2B, we had lower hardware sales of approximately €35,000,000 Then we had lower handset repair costs and less dock adjustments of about €10,000,000 and then we had lower direct costs because of closed cinemas and postponed spot events. On indirect costs, we were able to reduce the cost base by net NOK 129,000,000 percent, which is 4.1 percent of the total indirect cost base. On workforce, you see an increase of €13,000,000 in Q4. Two main reasons. Q4, we had higher capacity costs because of the launch of Blue, which caused extra workload in our call centers.
And the second point, in 2019, We had a bonus relevant achievement of below 100%, which resulted in lower accruals. On the other indirect costs, NOK500,000, we saw a full year saving of NOK102,000,000. In Q4, we had relatively high savings because of some seasonal effects in the prior year. Q4 2019 was impacted by higher marketing expenses, approximately CHF 10,000,000 and higher costs in B2B for customer projects, roughly SEK 25,000,000. Maybe a remark on the COVID impact 2.
On indirect costs, we estimate the impact of about NOK 15,000,000 mainly coming from reduced travel expenses. Percent. Group EBITDA, I think we heard all the explanations from Urs with the €19,000,000 decline in Switzerland and the nice 5% growth 4th percent. EBITDA is more or less neutral, maybe minus €5,000,000 Another way to look at the percent. Service revenue minus SEK285,000,000 and the indirect percent.
Cost savings we already discussed. Then on device decoupling, The positive effect from IFRS 15 on device decoupling amounted to CHF 66 1,000,000. This reconciliation item started in Q2 2019 when we introduced the new product portfolio
euros. There's no handset subsidies anymore.
This effect will stop in 2021, where we expect a positive impact of around €30,000,000 to €40,000,000 On subscriber acquisition costs, Q4 was CHF 23,000,000 above prior year. We bid more than 150,000 TV boxes have been replaced with the newest generation twenty. It helps to increase customer satisfaction and the retention value of mobile contracts were higher than in Q3, 20. Quite a strong Q4 in retention. It was at a similar level like in prior year Q4.
On wholesale, I already explained. And other, that's a net position of all the elements. I think the main elements are lower out payments for roaming because we had lower roaming revenues, Net income with NOK 1,530,000,000 is lower 10 prior year because 2019 was positively impacted by €269,000,000 as a result of the tax reform in 2019. We had a similar effect in 2020 at the lower level percent of roughly NOK 60,000,000. Both these impacts are non cash items.
Long term, we expect tax rate for the Swisscom Group of 19%. On CapEx, so without the prior year spectrum expenses of CHF 196,000,000, CapEx are almost unchanged, a little bit up in Switzerland and slightly down in Italy. The main increases in Switzerland are coming from the fiber rollout, CHF 25,000,000 higher than prior year, amounting to CHF 519,000,000 percent and some higher CapEx in the wireless network, 10% more than in 2019. Percent. As Alberto mentioned, reported CapEx in local currency at Farstep decreased slightly.
Free cash flow stands at CHF1.7 billion. Excluding spectrum CapEx, we can report an increase of CHF165 1,000,000. There are two elements to discuss. We have A positive net working capital development in 2020 of CHF140 1,000,000. There's a decrease of receivables of CHF 60,000,000 and we had an advanced payment of some corporate customers of SEK 62,000,000.
And tax payments were lower 22% due to time lags in the final tax assessments. 6. That brings me to the net debt situation. Net debt at year end stands at SEK 8,200,000,000 €579,000,000 lower than prior year. That leads to a leverage of €1,900,000 reported.
You see on the right hand side all the KPIs based on our single A rating. We 20. As very attractive funding costs of only 0.9% per year percent and 88% of our debts are fixed. That brings me 2. To the guidance 2021, some explanations to this guidance.
So we expect Revenue flat at SEK11,100,000,000. In Switzerland, we expect SEK8,500,000,000, which is week of then in 2020 due to service revenue pressure we expect that will be in the same magnitude 20. As in 2020, between CHF 250,000,000 CHF 300,000,000. On the other side, we will see positive contributions from solutions in the B2B segment and of course from Fastflap, a 5% top line growth. The EBITDA guidance for 2021 stands at around €4,300,000,000 slightly lower compared to 2020.
We see the following year over year effects. Switzerland is around SEK 3,400,000,000 EBITDA. There we have the impact of the service revenue decline of SEK 250,000,000 to SEK 300,000,000 A negative impact on the MVNO business of CHF15 to CHF20 1,000,000 2. Due to the merger Sunrise UPC, indirect cost savings of around CHF 300,000,000 The before mentioned decoupling effect positive of €30,000,000 to €40,000,000 and then a margin improvement on the solution business in the B2B segment. CapEx outlook is at around €2,300,000,000 for the group, of which Switzerland a bit more than €1,600,000,000 We expect the CapEx slightly higher because of the FTTH rollout and Fastweb 20.
Steady at €600,000,000 And this set of guidance allows to forecast an unchanged dividend of CHF 22 per share upon meeting our financial targets in 2021. 18. With that, I hand over to Urs, our CEO, for his final remarks. 19.
So thank you very much, Mario, for the explanation of these figures. And I will also now come to thank you, Mario. You are 18. Still, our CEO, you made an excellent job. And if I would have to summarize it, I would say percent.
Solid as a rock. And for this, I have a small gift. I will handle it over to you later. And on the bottom, you can see the summary which I will explain now, so that you actually Remember us when you are at home, when you are doing other things, I also We know also that you are a big gamer, that you like to do gaming. And if you are not in the gaming mode, you can actual look to this solid as a rock feature.
Mario was for 8 year CFO of Swisscom, he made 32 financial results presentations. So he's quite used to it. He had more than 1,000 investor meetings. And I think and also another nice figure is he distributed NOK9.1 billion dividend, €9,100,000,000 And he also cemented our rating, A rating. So he was our financial manager and the good shape of Swisscom for this year is a very important role, and we would like to thank you very much for your contribution, and I wish you all the best for the future.
Switzerland is a small country, so we will see certainly in other areas, maybe on the bike But a big thank you to you, Mario, for your big contribution to Swisscom.
Thank you also. Thank you for your trust. 2019.
Thank you, Tuan. That's solid as a rock, Mario. 6. And now I would like to welcome Oeygen. He will be our new CFO.
He will start on the 1st March. He has a 25 years experience in management. He is working for Swisscom since 2012 in different roles. The last role was the responsibility for M and A and Treasury. So he knows Swisscom very well.
And I'm happy to work with you again and looking forward to see you soon. Thank you very much also again that you are motivated to do this role. What can you expect from us? So we deliver 18. Our leading position in Switzerland, that means we want to outperform on the network side, on the sales side and service side, percent, operationally being the leader.
2nd point is we are strongly committed to operational excellence. 2. That's important. And 3rd, that we are executing on our growth ambitions. The main of them are in the area of IT.
And the 4th pillar is certainly Fastweb, where Alberto and his team is delivering growth as Alberto explained it before. This leads us to 22. A good dividend to be a predictable shareholder remuneration. So that's a bit our commitment. And now I would like hand over to Louis for the Q and A.
Louis?
As previously indicated, Birk Birspitski and Oslo