High-speed internet throughout Switzerland
The Federal Council wants to improve access to high-speed internet in sparsely populated areas. To that end, it adopted a dispatch to Parliament on the Broadband Promotion Act at its meeting on 9 September. The Act provides for a temporary funding programme to support the roll-out of broadband networks using fibre optic or wireless technology.
Summary
- The Federal Council wants to improve access to high-speed internet in sparsely populated areas
- To this end, it adopted the dispatch on the Broadband Promotion Act for submission to Parliament on 9 September
Continued development of broadband infrastructure
The Federal Council intends to press ahead with the roll-out of modern broadband networks. While roll-out in densely populated areas is largely market-driven, roll-out in certain rural and outlying regions is often not economically viable. The Federal Council intends to tackle this issue through a funding programme and provide targeted support for the roll-out of fixed broadband connections.
Today’s internet connections via copper cables will be phased out in the 2030s. As the roll-out of modern fibre-optic networks is not economically viable everywhere, many buildings would not be connected to a high-speed fixed network without government support.
According to estimates, around 19 per cent of buildings – or 10 per cent of households and businesses – would be affected. They would have to switch to radio or satellite links, which are often less powerful and less reliable.
The aim of the funding programme is to counteract a digital urban-rural divide. At the same time, the roll-out of modern fibre-optic networks is to be accelerated and help Switzerland to catch up with other countries.
Background
Parliament tasked the Federal Council with examining a national high-speed broadband strategy and called for public funding for broadband expansion (Postulate 21.3461 ‘Federal high-speed broadband strategy’). In response to this, the Federal Council adopted a gigabit strategy at the end of 2023 and instructed DETEC to draw up the legal framework for a funding programme. The draft law forms part of the federal government’s gigabit strategy, is in line with the Digital Switzerland Strategy and takes into account the principles of the federal government’s infrastructure strategy. The aim is to support the roll-out of high-speed broadband networks and to achieve the widest possible coverage across Switzerland with fixed connections offering download speeds of at least 1 Gbit/s.
Funding programme for broadband roll-out
The Broadband Promotion Act (BPA) provides for a temporary funding programme to support the roll-out of broadband networks using fibre optic or wireless technology. The programme is intended to support the roll-out of fixed internet connections in areas where this is not driven by the market. It is aimed at communes. Funding is to be provided by the federal government and the cantons.
Funding and duration
The planned funding programme is intended to support the roll-out of high-speed, future-proof broadband connections in areas where such investments are not commercially viable for providers. Funding of up to CHF 730 million has been earmarked for this purpose, half of which is to be provided by the federal government and half by the cantons.
The programme is limited to eight years. The federal contribution is capped at CHF 365 million. The programme may be extended once, for up to three years, if necessary, provided that the funds have not yet been exhausted. Participation by the cantons is voluntary; however, their financial contribution is a prerequisite for co-funding by the federal government.
Role of communes
The funding is not paid directly to network operators, but to communes or associations of communes, which must submit an application to receive it. Communes and associations of communes may either become the owners of the networks themselves and contract out their operation to a service provider, or pass on the funding to a network operator selected through a competitive tendering process, who will then build and operate the network.
Eligibility criteria and cost-sharing
Under the draft law, network operators are generally required to bear the costs of expansion themselves. Only the expected shortfall on a project is eligible for funding. The federal government’s contribution may not exceed 25 per cent of the total costs. Furthermore, subsidised networks must be put out to competitive tender, and it should be possible to share existing infrastructure in return for appropriate compensation. The Federal Council will set a maximum amount for the subsidy per connection. If this limit is exceeded in a fibre-optic project, alternative technologies such as radio links must be used, or the additional costs must be borne by the commune.
Funding
Funding of up to CHF 730 million has been earmarked for the roll-out of high-speed internet connections. The federal government and the cantons should each bear half the costs. To this end, the federal government would need to allocate a total of CHF 365 million between 2030 and 2037.
The programme is to be funded by revenue from future mobile telephony licences. However, projects will only receive funding if the canton concerned also contributes financially and covers half of the funding. Participation in the programme is voluntary for cantons and communes. However, if a commune wishes to receive federal funding, co-financing by the canton is essential.
Procedure for funding applications
The Federal Office of Communications (OFCOM) is to collect and publish information on the progress of the roll-out, specifying which buildings do not yet have an internet connection with a speed of at least 1 Gbit/s and for which no such roll-out is planned over the next three years.
Communes can use this information to assess whether action is required in their area. If they wish to support the expansion, they can draw up a project and submit a funding application.
The draft law provides that the relevant canton is to examine the application first. OFCOM will then decide, on the basis of the cantonal assessment, whether the project is to receive support and what the amount of the federal grant will be. OFCOM will also monitor whether the funded projects are being implemented in accordance with the statutory requirements and the stipulated conditions.
Impact on cantons and communes
It is estimated that up to 600 communes could benefit from the funding programme and receive support for the roll-out of modern internet connections. If cantons take part in the programme, they must match the federal funding with an equivalent amount. If the programme is utilised in full, this amounts to CHF 365 million. However, participation in the programme and involvement in individual projects remain voluntary for cantons and communes.
The main burden for the cantons arises from the process of assessing funding applications. This may vary depending on the number of projects submitted. In addition, individual cantons may need to amend or supplement their legal frameworks.
Communes applying for funding must prepare a development project, assess the need and carry out a tendering process. Furthermore, they must make suitable existing infrastructure available for shared use in return for compensation. These contributions are regarded as the communes’ own contribution to the funded project.
Impacts on the population, the economy and the environment
Under this funding programme, several hundred thousand homes and businesses could gain access to a high-speed internet connection with a speed of at least 1 Gbit/s.
The programme is intended to facilitate the roll-out of broadband in areas where it is not economically viable. This will not affect expansion projects that have already been planned and are viable. At the same time, the roll-out of modern networks is becoming increasingly important, as today’s copper cables will be phased out in the 2030s and will not automatically be replaced by fibre-optic cables everywhere.
In addition, the programme promotes the use of energy-efficient fibre-optic networks. These require less energy than older copper networks and can reduce the need for additional radio masts. This also has a positive impact on the environment.
Index
Press release and press conference
September 2026: High-speed internet throughout Switzerland: Federal Council adopts dispatch
March 2025: Consultation launched on programme to expand high-speed internet throughout Switzerland