Swisscom AG

Bank of America analysts said European telecom operators could benefit from adopting artificial intelligence across sales and customer retention, even as AI agents help consumers find cheaper deals. Reports are emerging of AI agents researching telecom packages and contacting providers to negotiate better terms for customers, which could increase pressure on operators by making price comparisons and switching easier. Yet price arbitrage has shaped European telecom markets for about 15 years, driven by entrants such as Iliad and the growth of mobile virtual network operators, and the spread of eSIM technology has made switching almost frictionless. In mobile, entry-level incumbent tariffs in Switzerland, France and Norway are priced 20%, 14% and 11% below second-quarter average revenue per user, respectively, while competitive pricing pressure is highest in the Netherlands, Switzerland and UK, where challenger offers carry discounts of 71%, 66% and 53% against incumbent back-book pricing. KPN, Swisscom and Virgin Media O2 have the greatest overall mobile exposure, while in fixed broadband the Netherlands and UK have the highest spin-down risk, with basic incumbent tariffs priced 52% and 51% below second-quarter ARPU, and KPN, Virgin Media O2 and Orange France carry the highest overall broadband exposure.