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WWW.SWISSQUOTE.COM FINANCE AND TECHNOLOGY UNPACKED

PORTRAIT Stadler picks up speed

LIVESTREAMERS Vying for clicks

SAUDI ARAMCO Revving up for the IPO

DOSSIER

THE5G RACE IS ON Novel applications Companies to watch Interview: Olaf Swantee, CEO of Sunrise

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EDITORIAL SWISSQUOTE JULY 2019

Candidate for the position of 5G: tensions are high Chief Performance Officer.

The new Cayenne Coupé. Shaped by Performance. Win an alpine test drive: www.cayenne-coupe.ch By Marc Bürki, CEO of Swissquote

hey say that whoever mas- with operators, are selling a dream. ters data masters the world. Virtual reality, connected objects, au- This is extremely relevant tonomous cars... So many applications p. 40 p. 45 Tto the trade war raging between are finally made possible via this new Washington and Beijing these past ultra-fast, reactive mobile network. In few months. At the centre of this practice, these usages will very likely battle is a Chinese company: Huawei, become widespread, but only in two accused of espionage by the Trump or three years, when the coverage and government and now blacklisted power of the network is in full force. by several US companies, includ- Currently, average consumers can ing Google. One may wonder who already enjoy speeds that are said to benefits from the situation, given be up to 10 times faster than 4G. But that Huawei, according to independ- there still needs to be a use for it. ent experts, is now far ahead in the highly strategic 5G market. This Sunrise, whose CEO Olaf Swantee key technology, which is currently granted us a long interview, seems p. 32 being launched, will have speeds to have found the right niche. While of several gigabits of data per its slogan “5G for people” seems to second, which is approximately the be focused on smartphone users, wireless equivalent of fibre optics. 5G service is actually an alternative to fibre optics in rural regions that Decidedly a source of tension, 5G is do not have high-speed internet ac- also, rather unexpectedly, the subject cess. The Zurich-based firm is bring- of a popular revolt in Switzerland. As a ing its technology to these areas first. pioneer in Europe, wise Switzerland is It’s an easy way to seduce towns accused of adventurism by opponents and villages, by offering them a “fibre of this new standard, who believe it over the air” service, according to p. 56 to be dangerous and harmful. Health Olaf Swantee’s favourite expression. concerns – which we outline in a fully In the United Kingdom where a similar researched article – are often paired pilot project is currently underway, with a rejection of consumerism and of the slogan is very clear: “5G Rural- a technology perceived as superfluous. First”. This might inspire Sunrise’s future marketing campaigns... This is a valid question. What is the purpose of 5G? Its advocates, starting Happy reading!

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60 PUBLISHER 24 Swissquote DOSSIER Chemin de la Crétaux 33 1196 Gland – Switzerland T. +41 44 825 88 88 www.swissquote.com 5G: THE RACE [email protected] Manager IS ON Brigitta Cooper 74 EDITORIAL Editor-in-chief Ludovic Chappex Associate editor Bertrand Beauté Design director Natalie Bindelli and Caroline Fischer CANA atelier graphique Route de Jussy 29 – 1226 Thônex 18 www.ateliercana.ch ENERGY TRAVEL Editorial staff Bertrand Beauté, Ludovic Chappex, Jasmine Lecker, Raphaël Leuba, Martin Longet, Salomé Kiner, Gaëlle Sinnassamy, Julie Zaugg 66 Layout Natalie Bindelli, Caroline Fischer, Coralie Meder, Sarah Meylan, Romain Guerini (CANA atelier graphique) Cover CANA atelier graphique sarl Photography STADLER Nicolas Righetti, AFP, Keystone, Getty images, iStockphoto, Newscom, Reuters LIVESTREAMING Editing (English version) Ose Ayewoh, Marco Simon Translation TABLE OF CONTENTS Technicis Finance

PRINTING, BINDING AND DISTRIBUTION 24. DOSSIER : Stämpfli Ltd. 3. EDITORIAL 14. TRENDS 5G, THE RACE 60. ENERGY 72. AUTO Wölflistrasse 1 – 3001 Bern by Marc Bürki Personalities, Saudi Aramco: BMW Series 3, www.staempfli.com nations, innovations IS ON the giant preparing the serial winner 6. SCANS for its IPO ADVERTISING 32. Interview with 48. Seven companies with Infoplus AG Economic 18. PORTRAIT Olaf Swantee, the right frequency 74. TRAVEL Traubenweg 51, CH-8700 Küsnacht survey Stadler picks CEO of Sunrise 66. INTERNET The hills of [email protected] up speed 54. Smartphones: Professional Valparaíso WEMF 38. An increasingly manufacturers livestreamers REMP 2018: 52,335 ex. Print run: 60,000 ex. powerful mobile race towards 5G 80. TRIED AND TESTED network Climbing a 125-metre 56. Is 5G transmitter 40. Five concrete dangerous? examples SUBSCRIPTIONABONNEMENT CHF 40.- pour 6 numéros 45. Behind the scenes CHF 40 FOR 6 ISSUES of a bitter war www.swissquote.ch/magazinewww.swissquote.ch/magazine/f/ STADLER / ISTOCK BARRY IVERSON PHOTOGRAPHY NEWSCOM LOIC MERMILLOD NICOLAS ASFOURI AFP STADLER

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digital RANKING INDIA: A TARGET Sacred Games, FOR STREAMING GIANTS SCANS the Netflix series created for the Indian The Indian market is enormous and the THE TOP 5 CHEESE-EXPORTING market is advertised COUNTRIES on the streets quality of its television shows leaves (based on the value of exports in 2018) of Mumbai. much to be desired. This environment finance is a tempting opportunity for streaming CHINESE-SWISS STOCK MARKET CONTRACT giants. Disney, which owns Indian plat- 1. GERMANY form Hotstar, created Hindi versions of $4.6 BN Criminal Justice and The Office. Netflix 2. NETHERLANDS published a series called Sacred Games $4.1 BN “ We are for the Indian market. Amazon also pro- 3. FRANCE duces content specifically for India. The $3.7 BN investing in three giants have also developed pack- 4. ITALY the UK. We ages priced to suit Indian households’ low purchasing power. A Netflix subscrip- $3.3 BN hold a long tion only costs 250 rupees (3.65 francs) 5. DENMARK per month, while Amazon’s is limited to $1.8 BN term bullish 999 rupees (14.6 francs) per year. DIS NFLX AMZN The headquarters of view on the Source : The World Factbook SIX Group in Zurich. FABRICE COFFRINI / AFP FABRICE UK wealth The Swiss and Shanghai stock exchanges have signed a management MILLENNIAL AMERICANS’ TOP 5 partnership agreement. Some financial instruments can be FAVOURITE BRANDS listed on the other country’s platform, which would allow opportunity ” (According to a survey of 400,000 Swiss companies to access cash reserves from their Chinese consumers) counterparts, and vice versa. It is also expected to encourage David Durlacher, 1. Chinese companies to be listed on the SIX in order to access CEO of Julius Baer International. more international capital. In 2013, the two countries signed a free trade agreement, followed by a monetary agreement a 2. year later between the Swiss National Bank and the People’s Bank of China. 3. INDRANIL MUKHERJEE / AFP

4.

oil auto BIG DATA USED FOR FRACKING SGS PUTS SELF-DRIVING CARS TO THE TEST 5. Fracking has made oil extraction a com- Source : Morning Consult plex science. To improve yields using this An oil extraction technology, ExxonMobil has partnered site in North with Microsoft. The Redmond firm will Dakota (US). provide cloud computing solutions in THE TOP 5 CANNABIS COMPANIES order to collect as much information as WITH THE MOST DEBT $120 billion possible in real time about operations in the Permian Basin in Texas. The tool will 1. CONSTELLATION BRANDS The valuation achieved allow ExxonMobil to make more effective $13.6 BN by Uber when it decisions in terms of where wells should 2. SCOTTS MIRACLE-GRO went public on the $2 BN be drilled and how they are operated. The ISTOCK New York exchange in Texas-based group will then be able to Geneva-based SGS has created a 3. AURORA CANNABIS early May. The ride- detect – and repair – leaks more quickly. vehicles are forced to use a multi- joint venture with Taiwanese company $599 M hailing service is the ExxonMobil is hoping to increase its pro- tude of partners to obtain this service. Allion Labs to develop a testing and SGS-Allion Automotive Communications 4. TILRAY largest online platform duction to 50,000 barrels a day by 2025. certification offering for the elec- will begin its operations in Asia – in $420 M to go public since Amazon has developed a similar service tronic systems that will be used in 5. APHRIA and has started exploring partnerships particular in China and Japan, where the Alibaba, which reached self-driving vehicles to help detect with BP and Shell. roll-out of self-driving vehicles is most $47 M a valuation of $169 any potential technological failures. advanced – before targeting the US and MSFT XOM billion in 2014. Currently, the manufacturers of these European markets. SGSN INGRAM PUBLISHING / NEWSCOM Sources: YCharts, company reports and press releases 2019

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SCANS digital MARKETING AGENCIES CONQUERING THE WEB KICKSTARTER

Arthur Sadoun, chairman and CEO of Publicis Group, here at an event in Paris (2018). “If I had to 1 MILLION+ start the The number of pigs in service again, China that have had to be slaughtered since I probably August because of the would not African swine fever that has ravaged the emphasize country’s farms. This the follower has caused the price count or the of pork to skyrocket, 348 increasing by 36% ‘like’ count The number ERIC PIERMONT / AFP in early April. China as much” of unicorns – or Until now, marketing agencies have made This transaction follows last year’s could lose 200 million unlisted start-ups very little from online advertising, which purchase of Acxion, a similar company, by animals as a result of Jack Dorsey, LASTSWAB CEO of Twitter, during valued at $1 billion has primarily benefited tech giants like IPG for $2.3 billion. For its part, Accenture the epidemic, according or higher – that exist a TED Talk about unwhole- REUSABLE Google and Facebook. But now, agencies will also acquire cloud computing com- to some estimates. some messages circulating worldwide, according want to turn the tables. In April, Publicis pany Cirruseo. With these acquisitions, on the platform. COTTON SWABS to CB Insights. acquired data marketing firm Epsilon advertising companies hope to amass Ride-hailing services for $4.4 billion – the company’s largest more consumer data. Who hasn’t seen the tragic photos are particularly acquisition since it was founded in 1926. PUB IPG ACN of squid and seahorses holding on well-represented. hemp to a cotton swab in the middle of THE CANNABIS INDUSTRY IS FLOURISHING IN CHINA the ocean? Each day, 1.5 billion swabs are produced worldwide. After being used just once, many end up in the ocean, where they take years to decompose. To fix this problem, Danish design firm ecology Faco has created a reusable cotton ELECTRIC MOBILITY DRIVING PROFITS FOR GLENCORE swab. Dubbed LastSwab, it has a silicone end and a rigid stem. It can The lithium-ion batteries that power be washed hundreds of times with- electric vehicles have an average lifespan “ Frankly, by out being damaged. It also comes of 10 years, after which they must be with a biodegradable hygienic car- recycled. This factor has led to a vast the time you rying case, ideal for travelling. This industry designed to recover the raw sit on one of environmentally-friendly cotton materials inside these batteries. In 2018, swab comes in an all-purpose ver- the market was worth $2.2 billion. It is ex- our aircraft sion, as well as another model with pected to grow 21% yearly between 2019 ... you’re a longer, smoother point designed and 2026, as the first electric vehicles for applying make-up. Eight colours

are retired. This is particularly profitable just pissed NEWSCOM / JORGE RAMIREZ PORTELA are available. for the recycling division of Switzerland’s at the world” Glencore, one of the main players in the Illegal until just a short time ago in China, industrial cannabis growing is now booming, and the country now produces nearly half of all global market. Its operations, concentrated in CEO of United Airlines A piece of raw cobalt. North America, process raw materials Oscar Munoz, regarding stocks. In 2018, cannabis brought in $1.2 billion, mostly in the form of The recycling of this textile fibres obtained from the stem of the plant. But several compa- from 18 countries. GLEN the many inconveniences, strategic material nies, such as Shineco and Hanma Investment, are now eyeing a far more wait times and other AVAILABLE for the manufacture lucrative market: CBD, an anti-anxiety product derived from the cannabis FUNDS RAISED annoyances that airline $715,000 AUGUST 2019 of batteries will help flower. By next year, Chinese sales of this oil will have quadrupled, limit its shortage. passengers have to deal with. reaching $228 million, according to New Frontier Data. TYHT SAMIR TOUNSI / AFP

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SCANS toys energy HASBRO LOOKING FOR THE LATEST TRENDS TRAFIGURA AND THE CURSED OIL

Texan group Valero claimed that A Transformer robot on the Hasbro Swiss company Trafigura sold it poor- stand at the San quality oil. The bad oil was part of a Diego Comic-Con shipment of 100,000 barrels sent by International the Geneva-based group in February Convention (2014). 2018. Those barrels were re-sold to the National Shipping Company of Saudi Arabia, which used them to fuel its ships. One of the ships had a motor failure, drifted at sea for two days, and then had to sit for six days in an Egyptian port because of the fuel, according to charges against Valero. +2% Valero has in turn pressed charges The increase in reve- against Trafigura. nue for Coca-Cola over VLO TRA18 the last 12 months, which can be at- SHUTTERSTOCK tributed to Brexit. UK distributors and consumers have started to stockpile to avoid shortages when Britain leaves the EU. / REUTERS SANDY HUFFAKER The United Kingdom makes up Toymaker Hasbro posted a surprise by the series Game of Thrones and 2% increase in revenue in Q1, making video game Fortnite. It is also en- approximately 20% consumption $732.5 million. The US group owes this joying the success of its Bumblebee of European xxx FRANCE GOES CRAZY FOR E-COMMERCE result to its clever product modernisa- film released in December 2018, which Coca-Cola sales. tion strategy. It has launched an online has introduced a new generation of version of its card game Magic, as well children to Transformers toys. as new editions of Monopoly inspired HAS

THE FLOP Samsung delays the launch $1.1 billion The fall in revenue of the Galaxy Fold posted by Boeing “The It was supposed to be a mobile reviewers found debris behind in the first quarter phone revolution: in late April, the screen, resulting from a 7 mm of the year due to the price Samsung had planned to put gap that appears when the phone grounding of its 737 its first foldable smartphone on is folded. Others discovered it Max aircraft, which is too the market. With a double screen became dented after putting it in was involved in two / AFP LIONEL BONAVENTURE that could be unfolded to create their pockets with other objects. deadly accidents in France is number one when it comes rapid adoption of the drive-through model, a surface roughly the size of a Some even had the screen die five months. The to buying food products online: 6.6% where order pick-up locations are placed high” tablet, this $2,000 device was one hour after being unfolded. aeronautics group of purchases are already made online, next to big box stores so that major re- particularly useful for videos, The screen of the Galaxy Fold is has had to cancel all compared to only 0.7% in Germany and tailers don’t have to pay for the last – and Eric Yuan, mobile gaming and reading. made of plastic, rather than glass, CEO of Zoom, orders for this model. 4.7% in the United States, according to most expensive – mile of delivery. France But when the first smartphones meaning that it is too fragile. commenting on the 85% a 2018 Nielsen study. This market is has 5,000 of these drive-throughs, run by increase in the firm’s made it into the hands of jour- Its launch was delayed with no already worth €6 billion and is expect- Auchan, Leclerc and Carrefour. And there share price after it went nalists, it all went south. Some further comment. ed to increase to €13.5 billion by 2025. are more and more popping up in cities, public in March. France owes its first-place status to its meaning shoppers can walk to them.

10 11 Siena Marine 64 SWISS QUOTE 20x26 cm.pdf 1 31/05/2019 15:49

SCANS SWISSQUOTE JULY 2019

SCANS transport TURKISH AIRLINES: FUTURE AIRLINE GIANT

Turkish Airlines hostesses at the inauguration of the new Istanbul Airport (2018).

“Reward all of your workers fairly. Respect the dignity of the men and women who work just as hard as you do to make Disney the amazing company it is” C Heiress Abigael Disney in an M

open letter to the company’s Y management demanding CM

salary increases at Disney. MURAD SEZER

MY PUB The new Istanbul airport, which ing to become a mainstay for routes opened in early April, can welcome linking Europe to Africa and Asia, two CY 3,000 flights per day and 90 million regions in which it has significantly CMY

passengers per year. By 2028, it will extended its network in recent years. K be able to receive 200 million passen- This is bad news for Gulf companies, gers annually. It is the hub for Turkish such as Emirates, Qatar and Etihad, Airlines, which operates most of the which have dominated this segment connecting flights. The airline is hop- until now.

THE IPO

$300 billion PINTEREST SUCCESSFULLY GOES The sum that will PUBLIC ON NYSE be invested globally over the next five Pinterest went public on the New advertisements on its platform in York Stock Exchange in April. The 2014 and didn’t expand outside the to 10 years to social network, which allows users US until 2016. It is also suffering develop electric to create an online image board, from increased costs as a result of its vehicles, according saw its share price quickly rise 30%, huge cloud computing requirements. to a Reuters survey currently valuing the company at It will pay Amazon $750 million of auto groups. $16 billion. In 2018, revenue was by 2023 for this service. Another Mercedes, General up 60%, reaching $756 million, challenge is that three-quarters of Motors, Geely and but Pinterest nonetheless record- its 250 million users are women, Nissan are leading ed a loss of $63 million. The Palo and the social network is struggling the pack. Alto company only began selling to increase its male audience. PINS 58 88 www.sirenayachts.com 64 12 SWISSQUOTE JULY 2019 TRENDS SWISSQUOTE JULY 2019 TRENDS DR

A sample of GlaxoSmithKline’s new malaria vaccine, Mosquirix, presented here at the Ewim Polyclinic in Ghana (2019).

the country COLOMBIA

Fragile recovery in Colombia Colombia is expected to see 3.2% growth this year – higher than Brazil, Mexico and Argentina. The the figure economy has started to recover MIGUEL PATRICIO after the South American country signed a peace agreement with the FARC revolutionary armed forces A marketer in charge in 2016. The recovery is buoyed by Company the construction industry as well GlaxoSmithKline at Kraft Heinz as the oil industry, which has the innovation Launch MOSQUIRIX Miguel Patricio is the new CEO of just begun to take off but already April 2019 Title Kraft Heinz, following the sud- represents nearly half of Colombia’s CEO of den departure of his predeces- exports. The introduction of fracking Projected cost Kraft Heinz sor Bernardo Hees. Patricio, who techniques to drill certain deposits The first malaria vaccine At least studied economics in Sao Paulo, in the Andean regions should fur- $810 million Age worked at Philip Morris, Coca-Cola ther increase oil production to reach Malaria kills 435,000 people per in the three countries by 2020. clinical trials. 52 and Johnson & Johnson before more than one million barrels per year, primarily children in Africa. Mosquirix was developed in Belgium The vaccine’s joining beer giant AB InBev in 1998, day. The country can also count on Until now, there was no vaccine in the 1980s by a GlaxoSmithKline effectiveness Nationality where he spent 20 years. Within its robust auto industry, as well as for the disease, which is spread employee. The vaccine’s develop- in children varies between 26% Portuguese the Belgian group, Patricio held one of the largest shipbuilding in- by anopheles mosquito bites. ment was primarily financed by the and 50%, compared to 97% for the successive positions in Canada, dustries in the world. But But things have started to change. Bill and Melinda Gates Foundation measles vaccine, for example. In the United States and China an influx of Venezuelan In late April, GlaxoSmithKline be- and PATH, a US NGO. It includes its decision, the EMA confirmed before becoming AB InBev’s head of marketing in 2012, Population refugees fleeing the gan vaccinating infants in Malawi genetic material from Plasmodium that “Mosquirix provides modest a position he held until last year. At Kraft Heinz, he will 50 million regime of Nicolas Maduro against malaria, with the help of a falciparum, the parasite responsi- protection against malaria”. While have to repair the damage caused by the questionable could destabilise this new product called Mosquirix. The ble for the disease, as well as the its effectiveness is only relative, strategy implemented by 3G Capital, one of its main GDP per capita fragile recovery. Un- campaign will continue on to Ghana chemical adjuvant ASO1, which health officials hope that it will shareholders. The firm pushed Kraft Heinz to focus $6,625 employment reached and Kenya, the two other countries increases the immune response. help reduce the number of vic- on budget cuts at the expense of brand development. 11.8% early this year, the targeted by the programme led tims in conjunction with the rest Growth highest since 2013. This by the World Health Organization In 2015, Mosquirix was approved of the antimalarial arsenal, which +2.9% (2019) spring, indigenous demon- (WHO). The WHO hopes to vaccinate by the European Medicines Agency includes medicines and mosqui- strators blocked a stra- up to 360,000 children per year (EMA), despite mixed results from to nets coated with repellent. Main economic sectors tegic motorway, leading oil, auto- to increased prices for manufacturing, certain foods. In March, shipyards inflation reached 3.2%.

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PORTRAIT SWISSQUOTE JULY 2019 PORTRAIT SWISSQUOTE JULY 2019

Stadler picks up speed

The Thurgau-based railway stock manufacturer is bringing in orders left and right and just triumphantly went public on the Swiss exchange. After conquering the world with its “Flirt” regional train, Stadler is now turning to high-speed trains.

BY JASMINE LECKER

he figures are almost cant amount of orders this year. CUSTOMISABLE TRAINS unbelievable: in 2004, In March, it signed its largest con- For Vincent Ducrot, head of Trans- Stadler Rail had tract ever for underground metros: ports publics fribourgeois (TPF) 1,100 employees and 127 two-car trains for the Atlanta and former head of the Major Lines generated revenue subway in the United States, for a and Travellers departments at Swiss of 556 million Swiss sales price of $600 million. Minsk, Federal Railways (SBB), the Flirt is a francs. Today, it makes 2 billion in Barcelona, Berlin, Glasgow and perfect example of one of Stadler’s Trevenue and has nearly 8,900 em- Liverpool also ordered underground strengths: the ability to produce ployees. While the railway industry trains from Stadler. many models of the same basic train grows year over year (+2.7% yearly that can then be customised. “The by 2023 according to the European But the company’s core business is Flirt is designed around a single Rail Industry), the Thurgau-based still heavy rail (see infographic on platform and then adapted based railway stock manufacturer has p. 22). Its current success is largely on client needs, similar to auto- grown at a higher than average due to its “Flirt” train. Sold as early mobiles,” explained the rail market rate for the past 15 years and just as 2002 for regional routes and 2008 expert. While effectively industrial- had a successful IPO on the Swiss for intercity travel, this train – whose ising is difficult in this industry due In 2016, the Rhaetian exchange in April (read inset on fastest version can reach 200 km/hr to country-specific requirements, Railway (RhB) or- p. 20). And this is just the beginning. – is Stadler’s moneymaker. It built Stadler’s structure makes it possi- dered 36 “Capricorn” trains from Stadler The executive team is aiming for Flirt trains for 18 countries, mainly ble to do just that. Rail, for 361 million four billion in revenue by 2020. in Europe, but also in the United francs, the largest States, Canada and Algeria; “from “The organisation of the entire order in RhB’s history. The first The Bussnang-based group did re- Africa to the Arctic Circle,” says company is based on its Bussnang model was unveiled cently exceed that goal. In late 2018, Stadler on its site. The “Kiss”, a location,” said Ducrot. “That’s in April. its orders reached 13.2 billion Swiss double-decker variation, is also where the expertise is concentrat- francs. And it already has a signifi- a top seller. ed.” And even though Stadler now GIAN EHRENZELLER / KEYSTONE

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has factories and assembly sites in discouraged. While Bombardier Hungary and Belarus, its much larger struggled to fulfil its complicated competitors Alstom, Bombardier and order, Stadler was successful five Siemens are scattered even more, years ago, providing SBB with new KEY FIGURES according to Ducrot: “Stadler builds high-speed trains for the under- trains, while other large groups ground Gotthard Tunnel (which in

GIAN EHRENZELLER / KEYSTONE 2 bn assemble parts from all over the this case are only one level). The In Swiss francs, world”. Some companies even need deal, worth 1 billion Swiss francs, to have experts travel between their was for 29 cars and an additional 2018 turnover. locations to make up for the lack of 92 if needed. Capable of reaching local expertise. On 15 April 2019, 250 km/hr, the “Smile” and “Giruno” Thomas Ahlburg, trains will be gradually introduced CEO of Stadler Rail, Furthermore, Stadler’s ability to and Renato Fasciati, on the Basel-Lugano-Chiasso and 62.2% offer customisable trains means it director of the Rhae- Zurich-Lugano-Chiasso routes start- Percentage of can access markets that its giant tian Railway, inaugu- ing in December. This model was revenue generated in rivals cannot. “Thanks to its rela- rated the first train also developed based on the Flirt. of the new regional Switzerland, Austria tively small size, the company has train “Capricorn” and Germany. maintained its flexibility and agility,” in Altenrhein. said Ducrot. For example, Stadler is the only manufacturer able to build narrow gauge (or metric) trains, which are used by TPF and Rhaetian “Stadler will have 7.5% Railway. “When you put out a call to manage moving Operating profit for bids for this type of train, only from a family in 2018. Stadler responds.” Furthermore, the Thurgau company stands out for structure to a the quality of its products and its public company” timeliness. While it doesn’t have Vincent Ducrot, director of 8,874 the most robust catalogue, “what Transports publics fribourgeois Number of employees it delivers is very well-made and on time”. worldwide, of which approximately “This project is completely strategic,” 3,000 are based THE “CONTRACT OF THE CENTURY” SBB ordered 59 duplex trains said Ducrot. “In Europe, many high- in Switzerland. AT BOMBARDIER for 1.9 billion Swiss francs from speed trains are reaching the end Editor-in-chief of Schweitzer Bombardier, with an option to pur- of their lifespan and will have to be Eisenbahn-Revue, Walter von chase 100 additional compositions. renewed, but very few companies are A SUCCESSFUL IPO Andrian confirmed that Stadler has Given the many delays and diffi- able to make them.” Von Andrian is a virtual monopoly on the narrow culties with the Canadian manu- more sceptical: “Demand is signifi- 13.2 bn Stadler Rail successfully went Exchange on 19 March. Going gauge train market. “That means facturer, there is still hope that cantly lower than for regional traffic. The value of the order public on the Swiss stock ex- public will allow the company portfolio in late 2018. change on 12 April. The issue to invest in new technologies, that in some ways it can set the SBB could go back to the market To be truly competitive, these trains price was set at 38 Swiss francs, as well as the tram, metro and prices.” However, Stadler missed for the additional trains. But von need to reach speeds of 320 km/hr on the high end of the initial locomotive sectors in particu- the “contract of the century” for Andrian said that Stadler has never (such as Siemens’ ICE trains in indicative range (between 33 lar. The percentage owned by double-decker high-speed trains for built a double-decker train capable Germany and Alstom’s TGV trains in and 41 francs). At the end of the the president of the executive Swiss Federal Railways in 2010; it of reaching 200 km/hr with a car France), which isn’t possible due to first day on the exchange, the board, Peter Spuhler, went went to Bombardier instead. Accord- incline system when turning or a the weight of the train.” But Ducrot 1942 share price exceeded 43 francs. from 80% to 40%. Year the Stadler It is currently priced at around ing to Ducrot, one of the people who roll compensation (ed. note: this believes it is feasible with a few 44 francs and the company’s Following the IPO, Stadler and signed the contract, Stadler offered neutralises the effect of centrif- adaptations. firm was founded in capitalisation exceeds 4.3 bil- financial analysts who were a train with a motorisation system ugal force and allows the train to Zurich by engineer lion francs. following the company had concentrated at the ends of the go faster), “which is an incredible ULTRA-CONCENTRATED MARKET and entrepreneur to observe a hold period for cars rather than spread throughout technical challenge”. Furthermore, Still, in order to compete, Stadler Ernst Stadler, who “An IPO is a natural step in communications, which is why the train, and this was one of the he doesn’t think that Stadler will must lower its prices for the standard the development of the compa- they were unable to answer our died in 1981. ny and it will further reinforce questions for this article. So primary reasons Stadler lost the be able to deliver on time. gauge train market, according to its visibility in global markets,” unlike other dossiers, this pro- contract. This technical decision is two experts. “Stadler builds beau- said Stadler when it announced file doesn’t include any invest- a disadvantage because it reduces But the company, led by Thomas tiful, high-quality trains, but they the IPO on the SIX Swiss ment recommendations. the number of seats on the train. Ahlburg since 1 January 2018, isn’t are expensive,” said the head of TPF.

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REVENUE BY SEGMENT

1,500

1,234.61 1,200

900

600

300 247.67 223.96 131.23 114.3 48.3

0 In millions of francs

Trains - 61.7% Services and parts - 12.3% To reduce costs, von Andrian believes Tramways - 11.2% that Stadler has no other choice but Custom vehicles - 6.5% to move even more production inter- Metros - 2.4% nationally, especially for its stand- Locomotives - 2.4% ard gauge trains, as it has already started to do. “Costs are simply too high in Switzerland for Stadler to remain competitive.” He said that even in Switzerland, Stadler locations are never far from the border, close to foreign workers...

“After a race for complexity Another titan is rising in the east: To continue its growth, Stadler in recent years, transport compa- China Railroad Rolling Stock should try to preserve the advantag- nies are now aiming to produce Corporation (CRRC), created in es that have made it successful so simpler trains at a lower cost that 2015 from a merger of two conglo- far, while simultaneously adapting can be easily maintained.” While merates controlled by Beijing. It’s to the fact that it is now one of the Stadler’s small size is an advan- the global leader with its eye on industry’s main players. What’s more, tage when it comes to flexibility, it Europe. But Ducrot believes that the CEO is no longer its historical limits the possibility for economies European quality standards are too leader. Former UDC national council- of scale. This is in the context of high for a new player to come on the lor Peter Spuhler, who purchased the Make it yours ! an ultra-concentrated market: in market overnight. Furthermore, railroad firm in 1989, is now “only” the pres- USM Kitos is your smart worktable: immediate the west, Bombardier, Siemens companies follow national preference ident of the executive board as of height adjustment with zero energy consumption – and Alstom make for a powerful to a certain extent. That said, Japan’s last year. Vincent Ducrot sums it up making daily work comfortable. triumvirate. If it wasn’t for the Hitachi is well-positioned, with incred- nicely: “Stadler will have to manage www.usm.com veto from Brussels, Siemens and ibly functional trains that are perfectly moving from a family structure to a Visit our authorized sales partners or Alstom would have merged. in line with new transport standards. public company.” SRAIL our USM Showrooms in Berlin, Bern, Düsseldorf, Hamburg, London, Munich, New York, Paris, Stuttgart,Tokyo 22

usm_swissquote_miy_kitos_E.indd 1 10.05.19 16:21 5G SWISSQUOTE JULY 2019 5G SWISSQUOTE JULY 2019

DOSSIER 5G The race is on Since April, a 5G mobile network has been a reality in Switzerland. This new network will transform the way we use mobile internet by 2022.

BY BERTRAND BEAUTÉ

t won by a hair. On 3 April at 11 pm, South Korea officially be- I came the first country to launch its 5G network – the new generation of mobile telephony. South Korea 32. Interview with beat the United States by only a few Olaf Swantee, hours, winning the symbolic title of CEO of Sunrise the global pioneer in the industry. Of course, this victory in the final sprint 38. An increasingly is above all a marketing win for South powerful mobile Korea, which is reinforcing its image network as a small country at the cutting edge of technology. But it also illus- 40. Five concrete examples trates the importance for countries all over the world of ensuring they 45. Behind the scenes don’t lag behind in the race for 5G. of a bitter war “The new generation of mobile 48. Seven companies telephony is a technological leap with the right forwards compared to 4G. It will frequency certainly be an essential competitive factor for companies,” says Philippe Smartphones: 54. Horisberger, deputy director of the Dossier prepared by manufacturers Bertrand Beauté and race towards 5G Swiss Federal Office of Communi- Ludovic Chappex cations (OFCOM). “Countries that 56. Is 5G dangerous? are behind in building their network

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could fall behind economically in the usability. But consumers won’t ex- This is due in particular to 5G’s very with their artificial intelligence host- future. The divide between latecom- perience a major technological shift, short latency – or network response ed in the cloud, giving factories more ers and pioneers will be difficult to even though download speeds are time – of about one millisecond, which THE 4G flexibility.” overcome.” twice as fast. For industry, however, is 10 times less than that of 4G. “This 5G is a real revolution.” performance boost opens the door to NETWORK IS CLOSE For industry, 5G is the essential In the 5G race, Asia and Uncle Sam developing resource-heavy applica- TO SATURATION fuel required to digitalise the entire are in the lead, with networks already tions, such as autonomous vehicles economy. And the financial possibili- operational in South Korea, China and telemedicine,” says Chevallier. “If Remember when an SMS didn’t send on New Year’s? ties are equal to the challenging task and the United States, in particular. “All industries you’re in an autonomous vehicle, you’d It’s the same phenomenon in the smartphone era. at hand. According to a study from In other words, “Europe is lagging rather have it react instantaneously As many users have already found out, internet consultancy firm TMG published in willlikely be speeds tend to slow down in places where there are behind,” says Julien Leegenhoek, a impacted by than have to wait for the response lots of people, such as stadiums and full commuter December 2018, 5G mobile services tech stock analyst at Union Bancaire time, even if it’s just a few dozen trains – and the reason is because the 4G network could create $2,200 billion in value

Privée (UBP). “If things don’t change, the arrival of 5G” milliseconds.” becomes saturated. A February 2019 study conducted globally between 2020 and 2034, or deputy European countries may not be the Philippe Horisberger, in 70 countries by 5.3% of global GDP during the same director of OFCOM first to develop the most modern, telecoms network period. “The first companies to profit tech-savvy applications.” specialist Opensignal from this will be those that deve- TOWARDS SMART The 4G network is showed that average FACTORIES 1.9 times slower speeds fell by two, lop the ecosystem – i.e. telecoms Dubbed “wireless fibre”, 5G promises “All industries will likely be impacted three or even five suppliers such as Huawei, Nokia to revolutionise mobile internet by The Internet of Things (IoT), which by the arrival of 5G,” says Horisberg- on average during times their normal and Ericsson, as well as chip manu- offering never-before-seen services has been a hot topic for years, will er, deputy director of OFCOM. “Manuf- the peak hour of speeds during peak facturers such as Qualcomm (see thanks to its ultra-fast speed (see be able to finally take shape. Thanks acturing processes in industry, for the day times in various our selection on p. 48–53),” says case studies on p. 40). For example, to its “slicing” architecture, the new example, will be transformed. In the regions of the world. Thomas Coudry, a telecoms analyst Switzerland is no it will be possible to download a generation of mobile telephony will future, robots will all be connected different. The 4G for investment bank Bryan, Garnier high-definition film to a smartphone be able to handle millions of con- and able to be directed in real time, network is 1.9 times slower on average during the & Co. “But in the medium term, it is in just a few seconds, at speeds of nections simultaneously in situations peak hour of the day, which is 9 pm, compared to user industries (the automotive sec- up to 10 Gbit/second (compared to in which 4G, which was only sized the least busy hour (3 am). During the most favou- tor, energy, the Internet of Things) 1 Gbit/second for the most advanced for a few objects, becomes saturat- rable times, speeds can reach up to 55.5 Mbit/second, that will benefit.” 4G network). Experts are already ed. “5G will support the development but during the day, the average speed is only envisioning new immersive experi- of the Internet of Things by allowing 35.7 Mbit/second. In Switzerland, 5G will create up ences in augmented or virtual reality a very large number of devices to “5G will take the load off current networks, which to 137,000 jobs by 2030, and will in areas such as sports broadcasts, be connected simultaneously,” says are often saturated during peak times, and will allow increase production by up to news and gaming. Chevallier. “This will lead to a wide more devices to be connected per square kilometre,” 42.4 billion Swiss francs, according range of new services.” says telecoms expert Pascal Martin. Operators are to a February 2019 study by the However, in the immediate future, even more impatient to implement this new technology Swiss Telecoms Association (ASUT), the general public isn’t the main given that the volume of data used on mobile networks the industry’s main lobby group. doubles each year and it will soon be impossible to target audience, as Sylvain Chevallier, absorb this growth with 4G alone. According to a study The manufacturing industry will a telecoms partner at consultancy by consultancy firm IoT Analytics, there are currently benefit the most, with a produc- firm BearingPoint, explains: “5G will 17 billion devices connected worldwide. This figure tion increase of 10 billion francs, certainly be faster, which is obviously is expected to grow by an average of 17% per year to representing an additional 20,600 a positive for consumers in terms of reach 21 billion by 2025. employees by 2030.

During a pilot programme which began in spring 2017 in partnership with Swisscom, Swiss company

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Ypsomed – a specialist in injection SWITZERLAND HITS the time to slow down if we want to In Switzerland, the 5G network will systems – automated a production “5G GUARANTEES MORE STABLE THE BRAKES stay in the race.” allow speeds up to two gigabits/ line with 5G (read the interview on Until now, Switzerland has been the second by late 2020, which is roughly this page). According to results pub- SPEEDS THAN WIFI” European leader. In mid April, Sunrise Jean-Pierre Bienaimé, secretary double the speed of the best 4G. lished in March 2018, this technology Urs Lehner, member of the Swisscom executive board and Swisscom launched their 5G net- general of the Brussels-based 5G That’s enough to boost video play- resulted in a productivity boost. “5G and head of the “Enterprise Customers” division, work in nearly 150 locations, making Infrastructure Association (5G-IA), back on smartphones, but certainly is a key factor in the fourth industri- explains the advantages of 5G for companies. Switzerland one of the world’s five qualifies this concern: “5G will de- not enough to revolutionise industry. al revolution: artificial intelligence. 5G pioneers. But this is starting to velop gradually. Europe will be sig- Smart production can’t do without it,” change. Because of growing con- nificantly behind if it’s not ready by “We’re still a long way from being says Simon Michel, CEO of Ypsomed. Last year, Swisscom began a pilot width stability. 5G is a superior cern from the population, several 2022, in other words, if it misses able to fully explore the potential of project for the industrial use of service because it can guarantee cantons – Vaud, Geneva and Jura the boat for what I call the real 5G.” 5G,” says Coudry, a telecoms analyst 5G with Bern-based company a perfectly constant speed. In – have adopted moratoriums on the for investment bank Bryan, Garnier Ypsomed, which makes insulin many critical industries, this is construction of new antennas, effec- The first 5G, currently available in & Co. “In the short term, the main pens for people with diabetes. an essential requirement, such tively freezing the spread of 5G. They a handful of countries, including benefit this technology brings to are waiting to find out more about Switzerland, is a “non-standalone” operators is absorbing the growth The goals are digitalisation and as a remote surgical operation, the technology’s health effects (see version using a network core that is in data volume at a lower operat- “5G is a key factor in real-time monitoring of goods for example. The other key advan- also p. 56). “We’re at the head of the still 4G. As a result: “It’s more of a ing cost than that of 4G. Some are the fourth industrial throughout the production pro- tage of 5G compared to WiFi is pack,” says Horisberger. “Now is not 4G++ than a true 5G,” says Bienaimé. talking about halving the cost of a revolution: artificial cess. We take a closer look. that the latency time (ed. note: the delay from when information intelligence” Simon Michel, CEO of Ypsomed What are the concrete is sent and when it is received) advantages of 5G for a is just a few milliseconds. That’s company like Ypsomed? another key advantage, particularly First, 5G offers lots of flexibility when millions of data must be and an easy installation. Compared processed in real time. to fibre optics, for example, 5G In this context, any delay in implement- doesn’t require lots of work to im- What kinds of companies ing 5G could end up being detrimental, plement and configure the network. are interested in these tech- depending on the economic environ- Furthermore, in a production envi- nologies? Are you partnering ment. According to ASUT, delaying ronment using a 5G network, devic- with other Swiss groups? the development of the 5G network es are no longer relying on physical We’re currently working on about by three years would reduce growth machines within the company to 10 projects with large companies from this technology by 10 billion function. Instead, they’re virtual, in industries such as pharma, Swiss francs and would make com- using what we call the Mobile Edge logistics and retail. Due to confi- panies less competitive. Cloud. So for companies we’re not dentiality agreements, we can’t just making a 5G network available; name any names yet. We should we’re offering a turnkey IT service. be able to provide more information These solutions will save compa- this autumn. In the public sector, nies money in materials, software we’re exploring opportunities for 5G and maintenance costs. use with the police, the military and Swiss Federal Railways. We’re also Why is 5G a better solution involved with building a new can- than WiFi, which is already tonal hospital in Aarau, which will available in most companies? be equipped for 5G and is expected WiFi does not offer the same band- to open in 2023.

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gigabyte. We won’t see new applica- “At the end of the day, it’s likely that nologies such as Bluetooth, the tions emerge until 2022–2023.” several standards, including 5G and LoRaWan protocol or WiFi, and it COMPETING WiFi, will share the connected objects still remains to be seen if 5G will 5G is presented as revolutionary, but it’s up market,” says Leegenhoek. The sixth be able to vanquish them all (see NETWORKS against ever-improving competition. COMPETING generation of WiFi (802.11ax), which infographic on p. 31). “In reality, NETWORKS will start being rolled out in late no one knows which technology But widespread adoption of this 2019, will offer speeds of several will be used for which purposes,” 4G 5G WiFi Fibre optics (FTTH) technology isn’t a sure bet just yet. gigabits and is designed for indus- says Coudry of Bryan, Garnier & There are alternative solutions: “The trial applications. Co. “Nevertheless, it’s hard to say Internet of Things didn’t wait for right now what future services will 5G before developing,” says Julien arise as a result of 5G technology.” Leegenhoek, analyst at UBP. “Opera- tors have a real incentive to describe Philippe Horisberger of OFCOM this new network as revolutionary “The Internet of agrees: “When 3G appeared in SPEED 300 Mbit/s 1 Gbit/s 2.2 Gbit/s 10 Gbit/s and to promise a number of unprec- Things didn’t wait for 2004, no one really knew what edented applications. But there are 5G before developing” the technology could be used for. competing networks, such as WiFi.” Julien Leegenhoek, analyst at UBP And then Apple launched its now- famous apps and mobile internet While 5G advocates are already an- became extremely successful. 25 to 35 ms 10 ms 10 ms 0 ms nouncing the death of WiFi, some ex- It will be the same for 5G. It will perts don’t believe this scenario will result in an explosion of new inno- LATENCY actually occur, especially because of For the time being, the Internet vations and applications that we 5G’s prohibitive implementation cost. of Things will use competing tech- have no idea about yet.”

98% 90% 100% 30%

98% of the Currently around 200 Potentially 100% 30% of the population. COVERAGE Swiss population. communes. All Swiss cities of the population. their own 5G networks without A BIG GAMBLE FOR GERMAN by late 2019 – 90% depending on operators. A major MANUFACTURERS of the population. advantage is that these compa- nies will be able to determine In Switzerland, only three the schedule of when the net- companies (Swisscom, Salt and work will be built and oversee Sunrise) will be able to develop its quality, as well as guarantee 5G networks. The Swiss Federal data privacy, since information Communications Commission won’t go through third parties. (ComCom) decided, like most However, experts believe that European countries, to reserve corporations will have trouble frequencies for the tradition- acquiring the necessary ex- The 4G network is already Huge numbers of smart Many connected objects Fibre’s impressive speeds al operators. This will not pertise. “Telephony is a skill,” well-developed in Switzerland objects can be connected work using WiFi, which has can be used for any be the case in Germany. The ADVANTAGES and will continue to improve. (via the IoT) – up to one million the benefit of already being application. said Sylvain Chevallier from Bundesnetzagentur decided Speeds are eventually per square kilometre – and installed in most residences. the firm BearingPoint. “Only a to allocate some 5G frequencies expected to reach 1 Gbit/s. it can support applications few big companies will be able to corporations, in addition to of all kinds. to master these technologies.” those set aside for telephone To assist them, manufacturers operators (Vodafone, Deutsche are positioning themselves on Telekom, Telefonica and United the market, such as Ericsson, Internet). As a result, compa- which in late 2019 will sell a kit nies like BASF, Siemens and for companies with no industry $ Volkswagen, that advocated 2022 $ knowledge to develop their own for this decision, can create 5G networks.

The 4G network is reaching It will only be in 2020 or even WiFi isn’t available everywhere, Requires a cable and isn’t saturation and will not be 2021 that speeds will reach particularly outside buildings. available everywhere.

DISADVANTAGES able to handle the surge 2 Gbit/s – and 5G will not Deployment is a long in data consumption. reach its promised and costly process. 10 Gbit/s until even later.

According to the best offers currently available in Switzerland and operator agreements Sources : Salt, Sunrise, Swisscom 30 31 5G SWISSQUOTE JULY 2019 5G SWISSQUOTE JULY 2019

ith significant increases So you’re saying that fibre is in profits and steady still the best option for very W growth in the number of high-speed internet. subscribers, Sunrise seems to be doing Correct, 5G will not replace fibre. But quite well, despite sluggish revenue currently, only 30% of all households in the first quarter. The Zurich-based in Switzerland are equipped with FTTH company, which is preparing to acquire fibre-optic connections (ed. note: the cable operator UPC (see inset on p. 36) fastest fibre). So 5G is a real opportu- is on the offensive on several fronts. nity for anyone who doesn’t have Its current challenge is to make 5G a access – both individual households true alternative to fibre-optic in those and companies. regions where cable networks haven’t been installed. Olaf Swantee, the Isn’t it more of an opportunity for group’s amiable and energetic CEO, operators to ease the 4G network, sat down with us for an interview on which is becoming saturated? this and many other topics, all the The data flow over our network while having a dig at its number one doubles every 16 months. It’s a INTERVIEW enemy, Swisscom. We met Swantee significant challenge to absorb that at Sunrise’s Vaud premises. growth. 5G will give us more capacity to handle the data flow increases. But People in Switzerland are that said, consumers will also benefit. hesitant to move to 5G because Think about 4K TV or even HD TV: with “WE ARE they don’t see the advantages. 5G, it’s immediate and truly amazing. What will this network really do for them? In addition to fast download speeds, Nearly one million households in the other main advantage of 5G is the A REAL Switzerland don’t have access to a reduced latency – the fast response fibre connection. Contrary to what time. It’s an advantage for applications you suggest, many people are actu- that require large upload volumes CHALLENGER” ally interested in a “fibre over the air” and simultaneous downloads, such service. Our strategy is to offer 5G to as video games and virtual reality. these people who live in places where Consumers will really see the differ- A pioneer of 5G in Europe, Sunrise is putting pressure on internet services aren’t very fast as a ence between 4G and 5G. Swisscom. In a bold move, the second-largest operator in priority. The first customer that we Switzerland announced the acquisition of UPC in February. set up in Switzerland is a perfect According to the first tests CEO Olaf Swantee reveals the battle plan. example of this. It was someone in conducted by bloggers, it’s the Aarau region whose only option not as fast as promised... BY LUDOVIC CHAPPEX AND BERTRAND BEAUTÉ PHOTOS : NICOLAS RIGHETTI was ADSL, which is much slower. This Have a little patience – we’re only application of 5G does not have the just beginning to deploy the network. same importance in cities like Geneva, We’re currently reaching speeds of Zurich, Basel or Bern, where fibre is around 800 Mbits per second, which easily available. Of course, this does is at least 6 times faster than 4G. not prevent us from also deploying And we’ll soon see speeds of one 5G for mobile applications. We intend or two Gbit/s. The latency time is to offer coverage in all regions of currently around 11 ms – three times Switzerland by the end of 2019. faster than with 4G. And the benefits

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are already there for TV, video game won’t happen overnight, because it and virtual reality applications. I requires perfect coverage. For example, recently spoke with a tour operator connected vehicles will need 100% who wanted to show hotels to clients of the road network covered. And it using virtual reality. 5G will make that will take time to get there. possible without having to use bulky equipment. But that doesn’t stop our compe- titor from promoting IoT. We’re more How is your business offering reserved and pragmatic. But we’re shaping up? still discussing the possibilities of IN FIGURES It’s one of our expanding markets. these technologies with several And what’s interesting is that a companies, such as Zurich airport, large part of our growth comes from for example. They are interested in +27.4% contracts with large companies such being able to use connected ma- The growth of as Nestlé, Procter & Gamble or Zurich. chines to optimise their productivity Sunrise’s gross When I joined Sunrise three years ago, and lower their energy consumption. operating income I thought that SMEs would be our (EBITDA) in Q1 2019, target customers. The other area of focus for long- reaching 175 million term development is establishing Swiss francs. Specifically in the field of 5G, private networks for big companies. what services are you planning For example, a group such as UBS to offer these companies? might need a faster network with a As I mentioned earlier, the most very quick response time in order to common commercial prospect for handle financial transactions. But 35 M 5G will be a branch of a company again, we’ll have to wait. In Swiss francs, in a location where high-speed the Zurich-based internet is lacking. That’s the case Are you implying that Swisscom company’s for La Poste, for example, to whom is selling a dream? net profit in Q1. we provide internet services. Some I’m not saying that our main competi- This figure has more of its subsidiaries don’t have high- tor is only selling marketing, but when than doubled. power infrastructure. 5G will allow I see a sign promoting the availability us to provide them with high-speed of 5G in Zurich, despite the fact that internet. network coverage is less than 80%, I can tell you that’s not our approach. We’re not selling something that we 173+ can’t provide. Our clients like working The number of cities in with us because we’re authentic. It’s Switzerland in which important to make it clear to them Sunrise is currently “Some of our what we can do. offering 5G. clients had never Traditional operators have a once changed reputation – something that reassures people. Won’t providers before” Swisscom’s corporate clients 1,611 be a little hesitant to switch With the acquisition of UPC, the mobile sector (58% for Swisscom). more, I clearly announced that we The number of Sunrise providers? prospect of a Swisscom-Sunrise So we need to challenge them. Our were going to lower our prices. employees, before its Attitudes are changing. Some of our duopoly is on the horizon. What’s teams want to win customers. We’re expected merger this clients had never once changed stopping the two largest players aware that we are the challenger. We Freenet – your main shareholder, year with UPC. 5G advocates talk about industrial providers before. And three or four from reaching an understanding have to prove that we can do better with a 24.5% stake – is against applications, such as connected months after signing with us, when on prices? than the competition. the UPC acquisition. Is that a machines or telemedicine, which I ask if we can use their name in The main reason is that even after sign of an improvised merger are more exciting possibilities. our marketing, they say yes. We’ve the merger, we will remain a real The second reason is that we will that investors don’t support? 1,876 M Yes, the Internet of Things, or also built excellent relationships challenger. We’ll only have a 14% continue to offer a progressive Freenet did not oppose the acquisi- In of Swiss francs, establishing connections with and with many well-known companies market share in B2B, a 30% share in dividend to convince investors. And tion, but said that they did not have the company’s revenue between machines, is the most such as Swiss, Rivella, Tamedia, the internet sector (compared to 53% to provide this dividend in the long the financial means to participate in 2018. talked-about application. But that Geneva airport and Zurich airport. for Swisscom), and a 26% share in the term, Sunrise needs to grow. What’s in the capital increase. We were

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surprised by this comment, which Sunrise and UPC Switzerland will be run tests and audits and we have 2018 because of 5G. But that’s implied that more discussions on a beneficial for growth, innovation and software tools that are constantly absolutely false. There weren’t deal were needed. But the Freenet efficiency. On the other hand, the being updated and that perform even any 5G tests being conducted SWISS-DUTCH RULE management was an integral part of progressive dividend seems to be checks to ensure the network is there at the time! According to an With his passionate vision negotiations over 18 months. We an attractive offer, especially in a working correctly. And legally, we’re article in the New York Times dated and a voluble, even explosive signed a contract. So appearing to country where this dividend is not protected by the contracts that 15 May 2019, many of these rumours way of speaking, Olaf Swantee call it into question isn’t ideal. In any taxed. Currently, the dividend yield is we’ve signed. were put about by Moscow because has been making his mark event, we’ve met with more than 170 around 6%. Companies that have Russia was falling behind in the on Sunrise since May 2016, investors in Switzerland and abroad, results as excellent as ours with such industry and was looking to slow when he became the CEO of the Swiss operator. After begin- and our project has been extremely a dividend are rare. With the acquisi- down other countries. I don’t know if ning his career in computing at well received. tion of UPC, we’re doubling our cash “We’re not that’s true, but I’m still very sur- Compaq and Hewlett-Packard, generation, so our capacity to return prised by the sheer amount of fake the Dutchman, now 53, joined Even though Sunrise shares impressive dividends remains high. the first nor the news that’s pretty much everywhere. Orange-France Telecom as have fallen in recent months... only company executive vice president. He The decreased share price is partly due What security guarantee does You threatened to sue if there was then named CEO of UK to work with telecoms operator EE and grew to technical reasons. Firstly, we paid a your Chinese supplier Huawei was a moratorium on 5G in the company to be a world dividend of 4.20 Swiss francs per share provide, given that the US has Huawei” Swiss cantons. Aren’t you leader. Married to a Swedish in April. Furthermore, new investors are accused it of espionage? afraid that Sunrise’s reputation woman and father of three very interested in purchasing shares It’s all political drama, not based on will suffer as a result? children born in Switzerland, but it’s normal for them to wait for the fact. The US is punishing Huawei to We’re not at that point. But it’s still Dutch-born Swantee is a Swiss citizen with a Swiss passport. Competition Commission to sign off on put pressure on China. But federal Another very reassuring fact is that very surprising that some politicians He holds a degree in econo- the merger this autumn. Also, some authorities have investigated and we’re not the first nor the only com- are selling us frequencies for a total mics from the University of investment funds, which are designed haven’t found anything to criticise pany to work with Huawei – in fact, of 389 million francs and that others Amsterdam and an MBA from for a smaller company, are being forced Huawei about. Germany and the UK 167 operators around the world want to keep us from deploying this the European School of Mana- to withdraw. reached the same conclusion. currently work with them. It has an technology. gement (ESCP) in Paris. What’s more, network security is our approximately 30% market share What could convince private responsibility and private data isn’t globally. Do you really think that However, the authorisation proce- investors to bet on Sunrise? put in Huawei’s hands. To guarantee Huawei would put that business in dures are the same as for existing On the one hand, the merger of the security of our installations, we danger? They’re actually quite careful masts and the equipment complies as a company. with the standards. So, if there is a moratorium on 5G, it’s only logical What kind of relationship do you to apply it to 4G and 3G and 2G. have with Huawei? Also, the frequencies in question UPS CABLECOM: Huawei’s 5G technology is really are well-known and are comparable AN ACQUISITION AWAITING APPROVAL cutting-edge. That wasn’t the case to WiFi frequencies. We’re not using for 2G and 3G, but with 4G and 5G it’s higher frequencies like in the US, Listed on the Swiss exchange a 24.5% stake in Sunrise, stated dominating the market. Over the years, for example. since 2015, Sunrise announced that it did not have enough funds we have built an excellent partner- in late February that it was to for the transaction. But Sunrise ship. When we have a problem, such But still, isn’t there something acquire cable operator UPC is holding fast, as it believes as a network outage, Huawei is very unspoken about the future of 5G, Cablecom for 6.3 billion Swiss it will be able to rally investors reliable and responsive. in that we’ll inevitably see higher francs. This transaction, which to its cause. Nevertheless, this frequencies to reach the full has to be endorsed by the Comco, uncertainty currently makes will make the company a key the investment somewhat 5G is currently experiencing power that has been promised? player in the high-speed internet speculative. However, Sunrise’s a wave of rejection in Switzerland No. We don’t need these high frequen- and streaming television markets, share price improved after due to its supposed adverse effect cies and I said that to the ComCom. two sectors in which Sunrise’s publishing promising quarterly on health. Does that concern you? We’re not in New York or Hong Kong presence currently pales in results on 16 May. As a result, It’s not a rational debate, but I’m where you need that kind of capacity comparison to that of Swisscom. Sunrise has revised its annual not surprised. We received the same because of the millions of people profitability projections upwards wave of criticism when we launched living in those cities. To achieve its goal, the Zurich- slightly. If the Zurich company based company is counting on reaches its goal, it expects 3G. The big difference is that now, a capital increase of 4.1 billion to pay out a dividend of 4.35 to the criticism is accompanied by fake What I can guarantee is that we’re francs, which will have to be 4.45 francs per share. In terms news spread via social media, which compliant with the current regulations endorsed by shareholders in the of synergies, it expects savings of has become much more powerful. and our technology is similar to that autumn. However, there is one 235 million francs from the fifth For example, people have written of 4G. It’s an astonishing controversy. SRCG minor issue: Freenet, which holds year after the acquisition. that birds were falling from the Actually, we should be proud to be the sky in the Netherlands in October first country in Europe to adopt 5G.

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FROM NATEL TO 5G...

2004 An increasingly With the arrival of 3G, the UMTS (Universal Mobile Telecommuni- cations System) standard, mobile telephony entered the internet era. In powerful mobile the early days, 3G offered speeds of 2012 1.9 Mbit/second under ideal con- The fourth generation of mobile telephony standards (4G) ditions – enough to read email and was launched to great fanfare in Switzerland by Swisscom webpages on a BlackBerry 7210. But in 2012. With speeds of 450 Mbit/second for 4G+, 4G al- network it wasn’t until 2007 and the launch of lows users to download large quantities of data, making it the first iPhone that mobile internet 2000 possible to watch streaming videos on a smartphone, make became truly widespread, with the internet video calls (Skype) and interact on social media. advent of apps. The maximum speed 1978 at the time was 40 Mbit/second. 1999 NOKIA 3210 PTT introduced the first mobile telephone network in, 2012 working using the AMPS (Advanced Mobile Phone System) 2004 STREAMING BEGINS standard. Known as Natel (Nationales Autotelefonnetz, BLACKBERRY 7210 450 MBIT/S or National Automotive Telephone Network), the network 10 MBIT/S made it possible for people to make telephone calls from 2020 their vehicles. In 1980, the Natel B brought true mobility, as users no longer had to be inside a vehicle to make a call. But weighing in at 12 kilos, the device wasn’t exactly what you’d call portable. The subsequent Natel C, D, and E were smaller and lighter.

NATEL 2G 3G 4G The GSM (Global System for Mobile 5G Communications) standard increased widespread access to mobile tele- phones. The Nokia 1011 (launched in Being launched simultaneously 1993) and the legendary Nokia 3210 by Salt, Sunrise and Swisscom in (launched in 1999) were particularly Switzerland, 5G is promising to successful. 2G networks were ideal revolutionise mobile telephone use. With speeds that will eventually 1980 for voice and SMS communications. NATEL B It also allowed limited access to reach 10 Gbit/second and even 30 Gbit/second, it will be possible the internet, with speeds of less 2019 than 10 kbit/second. In late 2020, 4K FILM to download a 4K film in just a 2007 Swisscom will switch off its 2G net- 10–30 GBIT/S few seconds. For consumers, this ADVENT OF technological leap will mean new work to make space for more recent APPS technologies, including 5G. 40 MBIT/S services, especially for augmented reality and gaming. But it’s industry that will draw the greatest benefit 1993 NOKIA 1011 1993 from this new network. 2007 IPHONE 1 2019

38 39 5G SWISSQUOTE JULY 2019 5G SWISSQUOTE JULY 2019 ISTOCK A look at five concrete examples As the capacities of mobile networks increase, 5G will allow a whole host of5 new uses to flourish. But beware of marketing spin.

BY BERTRAND BEAUTÉ

Phil Harrison, vice president of THE TIME FOR CARS THAT TALK TO EACH OTHER Google, on stage presenting Stadia. CLOUD GAMING The Californian giant’s streaming In the future, vehicles will be able Vehicle to Everything) standard de- manufacturers could see their game service aims to revolutionize the One of the advantages of 5G is to communicate with each other signed to run on 5G networks. But costs skyrocket if they have to gaming market its latency (the delay between and with the infrastructure around Volkswagen, Toyota, Renault and launch two systems, one domesti- (San Francisco, the request and the signal them. For example, when a light Volvo all support a Wi-Fi-based cally and the other for exports. March 2019). response), which is reduced to turns red, the car receives that solution. The problem is that its simplest expression – one information, starts to brake and these two systems are complete- From a technological standpoint, millisecond, or 10 times faster warns the car behind it, and so on. ly incompatible. independent experts agree that 5G than 4G. It’s so fast that every The dashboard computers will also will, in time, be the better technol- action seems to take place in receive information in real time ogy in terms of security, reliability, real time. The gaming industry about traffic, accidents, available signal strength and latency time. in particular will benefit from parking spaces and environmen- Cars will be able For example, cars will be able to these speeds. Currently, games tal conditions. This will help keep to engage recognise a pedestrian via their that require a significant amount traffic moving in congested cities, emergency braking smartphone and engage emer- of resources can only be played improve road safety and reduce gency braking to avoid hitting the on specific PCs. Cloud gaming is greenhouse gas emissions. pedestrian. In places with good when computing power is hosted coverage like cities, 5G will provide by a server and not on a con- While the auto industry as a whole Behind the scenes, players for geolocation in real time within one sumer’s device. This means that shares this vision for cars of the both sides are trying to convince metre. But Wi-Fi advocates say the most resource-heavy games future, it is still unclear wheth- governments to choose their tech- that a complete deployment of 5G can be played on any machine, er 5G will become the standard nology. China, home to the largest will take years and the technolo- including smartphones. So it’s that will prevail in this enormous auto market in the world, opted gies needed to launch it don’t exist no coincidence that giants like market. In fact, the auto industry for C-V2X, or 5G. But in April 2019, yet. Comparatively, Wi-Fi is already Google and Microsoft are cur- is rather divided in terms of which the European Parliament made the available and is less expensive rently developing their streaming standard to adopt. Manufacturers opposite choice, going for the Wi-Fi to develop and maintain than 5G. video game services, hoping to such as Daimler, Ford and PSA are standard ITS-G5. If the European Furthermore, operators will charge be the future Netflix of gaming. proponents of the C-V2X (Cellular Union maintains its position, auto for 5G data. STEPHEN LAM / REUTERS

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The port of Rotterdam VIDEO SURVEILLANCE: is one of the most important industrial BIG BROTHER IS WATCHING YOU sites in line for the use of 5G. Tests are currently being conducted to optimise In July 2017, a fire broke out at the More generally, 5G will signifi- logistics flows. Shell Pernis refinery in Rotterdam, cantly improve video surveillance the largest refinery in Europe. The performance, and this is not site had to be shut down. Could limited to industrial sites. During this happen today? Since 2018, the Roland-Garros tennis tourna- Shell has tested 5G video surveil- ment in July 2018, the technology lance at its Shell Pernis facilities. was used to broadcast live video Mobile robots equipped with ultra in ultra-high definition with 8K HD cameras continuously inspect resolution. With such precision the refinery’s pipelines in order to available in all video surveillance detect possible leaks. This is a dif- cameras, security guards (or algo- ficult task for humans, since there rithms, more likely) will be able to are 160,000 km of pipes, which is detect an anomaly at a location enough to circle the earth nearly or identify a fugitive much more four times. Several smart sensors quickly. This is especially true were also distributed to measure since 5G solves another problem: the behaviour of the facilities in with data transmitted directly real time and to send an alert in to the cloud and no longer stored the event of any abnormal situa- on a hard drive, images of all tion. All the collected data feeds sizes can be saved virtually into predictive maintenance algo- indefinitely. This possibility will rithms in order to reduce costs by certainly lead to issues in terms optimising maintenance work. of fundamental freedoms.

FREIGHT GOES DIGITAL

In November 2017, Swissquote The goal is to cut down on docking Magazine published a feature on time in order to allow more ships the Dutch port of Rotterdam, one to come in. of the most innovative ports in the world. Thanks to 5G technology, In general, infrastructure opera- the digitisation of this gigantic port tors (ports, airports, railways) are – which welcomes 140,000 ships closely following 5G technology, and 460 million tonnes of goods as it can monitor goods in real time each year – will happen even faster. and automate loading and unload- Since 2018, the port of Rotterdam ing processes by using autonomous is home to an industrial 5G field lab machines. Since late 2018, for – a laboratory created by KPN, Shell, example, China’s Qingdao port – the Huawei, ExRobotics, Accenture and sixth-largest port in the world with ABB in order to test potential 5G 19.3 million containers per year – is A demonstration of applications on the docks. For ex- testing a transhipment crane that the Chinese company ample, by using smart sensors, port is automated via a 5G connection, in Horizon Robotics. This firm develops authorities can collect information partnership with Ericsson and port video surveillance in real time about ship traffic and machine manufacturer Shanghai solutions for smart containers coming and going. Zhenhua Heavy Industries (ZPMC). cities, based on 5G technology. JAMES ATOA / NEWSCOM JAMES ATOA KEES TORN

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TELEMEDICINE IN THE SPOTLIGHT

A first! According to information reported by Chinese public TV BEHIND THE channel CGTN, a team of doc- tors successfully completed a remote surgery using 5G in March. A Chinese patient with SCENES OF A Parkinson’s disease received a brain stimulator, which was im- planted in his brain by a surgeon BITTER WAR located 2,500 km away. This was made possible thanks to Huawei and China Mobile’s 5G network. The surgeon could direct the ar- The fifth generation of mobile telephony is caught in a ticulated arms of a medical robot geopolitical trade war between Washington and Beijing. remotely and in real time. BY BERTRAND BEAUTÉ

Virtual medical appointments will russels, Tuesday 5 March accusing it of spying on the world for handling extremely sensitive data – exceed in-person 2019. At the corner of the Chinese government, particularly so there’s reason for concern among visits in the United Rue Guimard and Rue via its 5G infrastructure. those in high places. It’s “terrifying”, States by late 2020 du Commerce, nearly according to a comment made by US 200 people – European civil servants, Secretary of Commerce Wilbur Ross Remote consultation Btelecoms experts, journalists and in April 2018. between two lobbyists – were gathered in front The stakes are high: hospitals in Paris. AFP of a newly renovated plexiglass 5G promises to To protect the US from potential building. It was here, in the centre intrusions, Donald Trump quickly Will telesurgery, a medical of the European quarter, that the connect a multitude declared a “national emergency” dream for the past 20 years, Chinese giant Huawei was inaugurat- of vital devices – on Wednesday 15 May in order to become widespread with the sible, there are too many obsta- example, emergency paramedics ing its Cybersecurity Transparency telephones, factory officially ban foreign companies that advent of 5G? The answer is no. cles in the way of making remote can be assisted in real time by Centre to great fanfare. The space machines, hospitals are deemed a risk to the US telecoms First of all, remote surgery is not surgeries widely available. specialists at the closest hos- is open to the public, politicians and network market – a measure target- new. Back in 2001, surgeons in pital. In addition, video medical customers as a place for the Chinese and airports, not ing Chinese companies Huawei and New York operated on a patient To do these surgeries, teams consultations are currently firm to demonstrate its “commitment to mention military ZTE. And the US president isn’t stop- at Strasbourg University Hospital need medical robots that can rather rare but are expected to to cybersecurity”. applications ping there. “Washington is pressuring 7,000 km away, thanks to an replace surgeons’ hands. increase. According to Forrest- its allies, particularly Germany and ultra-fast connection using fibre These machines are extremely er, virtual medical appointments Over the past few months, the the UK in Europe, to also ban Chinese optics. Compared to the first re- costly and can only be found will exceed in-person visits in communications department for the 5G manufacturers,” says Thomas mote surgery, 5G makes it possible in the major hospitals of rich the United States by late 2020. traditionally discreet company has The stakes are high. Unlike 4G net- Coudry, a telecoms analyst for in- for doctors to intervene in places countries. Furthermore, these But the first medical applica- been hosting increasing numbers of works, which exist primarily to make vestment bank Bryan, Garnier & Co. that don’t have cables, particular- major medical hubs are full of tion of 5G is less obvious. In events like these. In early 2019, for telephones work, 5G promises to ly in military operation locations, specialists, but telemedicine is the short term, 5G will improve example, journalists were invited to connect a multitude of vital devices – While New Zealand and Australia regions devastated by natural designed to fill in for when these patient care by monitoring and visit Huawei’s facilities in Dongguan, telephones, of course, but also facto- have followed the lead of the United disasters or medical deserts. specialists are not available. guiding patients through various China. The goal is to reassure western ry machines, hospitals and airports, States, European countries are hospital services. It will also help governments that there’s nothing not to mention military applications resisting despite enormous pressure. But while the capacities prom- Regardless, 5G will accelerate older people remain independent to worry about at a time when the (high-speed connections between This March, for example, Washington ised by 5G make this type of the development of telemedi- in their own homes for longer, United States is waging a fierce cam- soldiers, vehicles and robots). This threatened Germany with reconsider- intervention technologically pos- cine. After a car accident, for with the help of multiple sensors. paign against the Chinese company, means that 5G infrastructure will be ing its cooperation in military

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intelligence if Berlin didn’t ban our relationship with Huawei,” Olaf a concerning legal framework in which it used to test smartphones. So it’s not surprising that the United On 15 May, Chinese manufacturers from its 5G Swantee, CEO of Sunrise, told our China: article 7 of the 2017 National Huawei was also accused by the US States wants to avoid China dominat- US President networks. To take the heat out of magazine (read the interview on Intelligence Law, under which all Justice Department of offering bo- ing 5G networks, because that would Donald Trump the situation, Huawei founder Ren p.32). “It’s more a political concern Chinese companies must cooperate nuses to its US employees who stole make the US dependent on Chinese placed Huawei on its blacklist, making it Zhengfei had to break his silence than a security issue. The United with national intelligence services. technology from rival companies. infrastructure. “US leadership in 5G almost impossible and grant the BBC an interview in States is using Huawei to put pres- This implication is a bit rich coming technology is a national necessity for for the Chinese February, a move he hadn’t done sure on China because their trade from the United States, given that “All these security concerns are economic growth and competitive- company to buy since 2015. “Huawei would nev- negotiations have hit a dead end.” the NSA had the unfortunate habit legitimate. You cannot be naive or ness,” said Ajit Pai, president of the US-made goods. er harm its customers,” said the of implanting backdoors in US-made paranoid about Huawei’s potential Federal Communications Commis- 74-year-old CEO before becoming On Friday 10 May, the United States routers intended for export, as un- risk,” says Thomas Coudry, a telecoms sion (FCC), at a 2018 summit at the more aggressive: “The United States announced it would increase tariffs covered by the secret documents pub- analyst for investment bank Bryan, White House. cannot crush us. The world needs us from 10% to 25% on 5,700 Chinese lished by Edward Snowden in 2013. Garnier & Co. “But banning Chinese because we are more advanced”. goods, a measure worth $200 billion, manufacturers is also a political and after negotiations failed. Beijing economic issue.” “What the US is currently doing is immediately declared it would take incredible and unprecedented in “necessary counter-measures.” As a To understand why, we need to go According to some the history of telecoms,” says an result, Chinese telecoms manufac- “All these security back to the early 2000s. When 2G industry expert. “It’s going so far as turers are in the middle of a particu- concerns are was being rolled out, Beijing decided experts, Huawei’s to offer financial support to foreign larly brutal trade war. legitimate. You to develop its own standard rather 5G products will telecoms operators.” This is be- than adopting the European GSM. It be a year ahead cause replacing Chinese companies To justify its policy against Huawei, cannot be naive or wasn’t an absurd decision, but rather would be very expensive for those Washington is claiming a matter of paranoid“ a long-term vision that allowed its of its competitors operators. Huawei has very strong “national security”. But is it really? Thomas Coudry, a telecoms analyst companies to learn the telecoms for investment bank Bryan, Garnier & Co and long-standing relationships As of now, the White House hasn’t business. In less than two decades, with Deutsche Telekom in Germany, provided any substantial evidence China became the top telecoms mar- Sunrise in Switzerland, BT in the of possible backdoors in Huawei ket in the world, with national cham- United Kingdom and Telecom Italia infrastructure. The US government is But Huawei isn’t completely inno- pions Huawei and ZTE booming and In the short term, banning Huawei in Italy. “We are very satisfied with condemning what it considers to be cent. In 2010, for example, Motorola becoming global leaders. According will benefit two other global 5G pressed charges against the company to IHS Markit, Huawei now dominates leaders: Finland’s Nokia and Sweden’s for bribing a dozen or so of its em- the telecoms equipment sector, with Ericsson. The two Scandinavian ployees. One was stopped at Chicago a 31% share of the global market groups already generate significant airport, ready to leave for China with in 2017, just ahead of Swedish firm profits in the United States, where loss of €59 million (read the company 1,000 pages of sensitive documen- Ericsson (27%) and Finnish company Chinese equipment is banned. “In profiles on p. 48). tation in his luggage. More recently, Nokia (22%). the rest of the world, Huawei, Nokia in 2014, T-Mobile initiated proceed- and Ericsson are waging a gruelling This shake-up piqued the appetites ings against the Chinese company And the Shenzhen-based group, battle,” says Chevallier. of two other players that hope to for stealing data on its robot Tappy, whose revenue reached $107 billion benefit from the situation. One in 2018, hopes to profit from 5G to Currently, the Swedish group seems is South Korean conglomerate gain even more market share. Its best positioned to take advantage Samsung, whose network branch research centres are hard at work, of the lack of trust in Huawei. “The completely missed the boat on 4G, thanks to the $2 billion invested first 5G deployments in the world (in and the other is US-based Cisco, in this new technology since 2009. the United States and South Korea) which is lying in wait. In a February According to some experts, Huawei’s were completed with European 2019 report, Cisco is presented as 5G products will be a year ahead of equipment from Ericsson,” says a future 5G leader by 2022 – the date its competitors and will be priced up Chevallier. But it may not be enough when the technology will truly take to 20% lower. Its goal is to become to revive an industry that has taken off. According to figures from the US indispensable, if that’s not already a battering in recent years. “Their company, 5G connections will only the case – Huawei claims to have put margins dropped considerably when make up 3% of mobile connections Chinese President more than 1,500 networks into ser- Huawei came on the market,” says in the world in 2022, compared to Xi Jinping (left) vice around the world. “The telecoms Chevallier. This highly competitive 54.3% for 4G. The real switch-over is not missing an industry is a key industry for national environment led to Nokia’s acquisi- will occur after that date, and Cisco opportunity to support Huawei. sovereignty,” says Sylvain Chevallier, tion of French-American company hopes to benefit from the timing. To Here in London in partner and head of telecoms at Alcatel-Lucent in 2016. And figures help make up for lost time, the com- October 2015, with BearingPoint. “It’s important for show that telecoms manufacturers pany will be able to count on the company president states to maintain their ability to are still struggling to turn a profit. unwavering support of the Ren Zhengfei. innovate in this industry.” In the first quarter, Nokia recorded a US government.

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#7 #Qualcomm The king of 5G modems PAU BARRENA / GETTY IMAGES PAU COMPANIES THAT FOUNDED 1985 It was a major win. In mid April, tino group, which would bring HEADQUARTERS Apple and Qualcomm ended their in $8 or $9 per every iPhone SAN DIEGO (US) legal battles that had been going sold. While that price seems EMPLOYEES on for several years. While the high for Apple, it’s most likely HAVE THE RIGHT 35,400 terms of the peace agreement the company’s best solution. In 2018 REVENUE $22.73 BN were not published, it is with- fact, without this agreement, out a doubt a huge success for Apple may not have been able CAPITALISATION FREQUENCY $99 BN Qualcomm, whose share price to launch its iPhone 5G before QCOM soared 30% following the an- late 2020 – its partner Intel In the short term, the deployment of 5G will nouncement and has yet to fall. was running behind on the mainly benefit telecoms equipment manufacturers 5G front. According to figures circulating and chip makers. We feature some of the best. in the media, Apple agreed to Qualcomm, which was already a

BY BERTRAND BEAUTÉ pay $6 billion to its supplier to market leader for 4G cellular mo- end the commercial disputes. dems and conquered nearly 50% But this sum is only a small of the global market according percentage of the jackpot that to firm Strategy Analytics, is Qualcomm won. While the chip now the leader in 5G chips. Its manufacturer’s products were new modem, SnapDragon X50, banned in iPhones (which used was already chosen by ZTE, Intel chips instead), the com- Oppo, Vivo, OnePlus and Xiaomi. pany could once again sell its Most analysts recommend pur- semi-conductors to the Cuper- chasing shares. #Broadcom The RF filter expert

FOUNDED Broadcom is thrilled. With the deployment of 5G, 1961 its products seem destined for success. The US HEADQUARTERS company produces RF (radio frequency) filters SAN JOSE (US) for smartphones. The filters choose the correct EMPLOYEES range of frequencies. This type of component is 15,000 2018 REVENUE playing an increasingly vital role in the move to $20.5 BN 5G. While a current 4G telephone manages ap- CAPITALISATION proximately 40 frequency ranges, it is expected $115 BN

to double for 5G. AVGO As a result, the global filters market will take off, reaching $22.5 billion in 2023, compared to $8 billion in 2017, according to the firm Yole Développement. As a supplier to Apple and the The Qualcomm global industry leader, Broadcom is particularly booth at the Mobile well positioned to take advantage of this market. World Congress held in Barcelona this While most analysts recommend purchasing February made a shares, Broadcom must compete with Qualcomm, strong impression. The Qorvo, Skyworks Solutions and Murata. company presented its latest innovations in the 5G sector.

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AND ALSO... #ATC The tower manager CISCO: THE US LEADER SHAN YUQI / KEYSTONE When it comes to 5G infrastruc- ture, Cisco is far behind Huawei, FOUNDED Ericsson and Nokia. But the US A long, calm river: since 2002, the share price 1995 company hopes to become an of American Tower Corporation (ATC) has con- HEADQUARTERS industry leader by 2022, when tinually increased, going from $1.5 in September BOSTON (US) the “real” 5G will be deployed 2002 to more than $200 today. And it will likely EMPLOYEES with speeds of 10 Gbit/second. climb even more. For technical reasons, 5G net- 5,000 It’s a difficult challenge, but works need many more relay antennas in place 2018 REVENUE Cisco can count on support from $7.4 BN the White House, which consid- than for 4G. ATC is no other than the global CAPITALISATION ers 5G to be a national priority. leader for the sites that host the antennas. The $89.5 BN EMPLOYEES: 74,200 company builds towers and then rents them to AMT 2018 REVENUE: $49.33 BN operators that install their antennas on top. The CSCO US company now has more than 170,000 com- munications sites across 17 countries, includ- ing 41,000 in the United States. Most analysts INTEL: OUT OF THE RACE recommend keeping shares, as they are already well valued. Following the partnership At the Hannover Fair between Qualcomm and Apple, in April, Ericsson Intel announced in April 2019 introduced a spider that it was leaving the smart- robot powered by the 5G network. phone market. The group will continue to supply its 4G chips used in the iPhone 7 but its 5G modem, dubbed XMM 8160 and expected in 2020 to equip the #Cellnex future iPhone, will not be released. Nevertheless, Intel won’t com- Europe’s tower leader pletely abandon 5G. It will focus on developing 5G chips for PCs #Ericsson – a sector that the company has FOUNDED more control over compared The Swedish revival The news broke in early May. After Sunrise 2015 to the smartphone industry. decided to sell off its telecoms antennas HEADQUARTERS EMPLOYEES: 107,000 business to Cellnex, Salt – another Swiss BARCELONA (ES) 2018 REVENUE: $70.8 BN INTC FOUNDED operator – sold its fleet of 2,800 antennas EMPLOYEES 1,400 Ericsson employees have ­Ericsson to deploy its network 1876 for €700 million. earned their Aquavit. After a in Switzerland. The Swedish HEADQUARTERS 2018 REVENUE €898 M MEDIATEK: 5G CHIPS long empty period and a diffi- company is now the global STOCKHOLM (SE) The company now has 45,000 towers across cult restructuring, the Swedish leader in deploying 5G infra- EMPLOYEES CAPITALISATION 95,400 six European countries (Spain, France, Italy, €8.89 BN In December 2018, Taiwanese telecoms supplier has found structure. It directly benefited Switzerland, Netherlands and the UK), compared chip manufacturer MediaTek 2018 REVENUE CLNX presented its first 5G modem, success once again. In the peri- from decisions made by the SEK 210.8 BN to only 7,000 in 2014. Comparatively, its com- od from January to March 2019, United States and other coun- petitor American Tower Corporation (ATC) has the Helio M70. The group mainly CAPITALISATION collaborates with Chinese smart- the group recorded a profit of tries to ban Huawei infrastruc- SEK 299 BN 170,000 sites around the world, but only 4,500 phone manufacturers, such as 2.4 billion kroner (€230 million). ture in their countries. ERIC in Europe. Most analysts recommend purchas- Oppo and Vivo, and is expected ing Cellnex shares. to profit from the boom of 5G It’s an incredible performance, In Q1 2019, Ericsson’s sales mobile phones. especially since the company increased 43% in the US mar- EMPLOYEES: 74,500 lost 725 million kroner during ket compared to Q1 2018. Most 2018 REVENUE: TWD 275.5 BN the same period a year earlier. analysts advise to keep shares. The results were buoyed by The fierce competition with operators investing in 5G such Huawei and Nokia for the 5G as Swisscom, which chose market could weigh on margins.

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MURATA: JAPAN’S FILTER EXPERT #Nokia A supplier to Apple, Japanese The patient Finnish company group Murata makes RF (radio frequency) filters, which are particularly important for 5G FOUNDED to work properly. The company 1865 One person’s misery doesn’t in mobile telephony changed is expected to benefit from the HEADQUARTERS necessarily mean joy for anoth- course to focus on the tele- #Qorvo boom of this technology. ESPOO (FI) er. While Nokia was expected coms infrastructure market The other radio EMPLOYEES: 77,500 EMPLOYEES to benefit from the arrival of and acquired Alcatel-Lucent in 2018 REVENUE: ¥ 1.575 BN 102,800 frequency specialist 6981 ANDREU DALMAU / KEYSTONE ANDREU DALMAU / 5G and the US ban on Chinese 2016. Since then, the company 2018 REVENUE €22.56 BN suppliers (Huawei and ZTE), has suffered from a sluggish FOUNDED the Finnish supplier is actu- demand for 4G equipment. The 2015 SAMSUNG: A GIANT AWAKENS CAPITALISATION €24.17 BN ally going through a difficult move to the next generation In early April, US radio frequency parts manu- HEADQUARTERS GREENSBORO (US) In February, French telecoms NOKIA period. In Q1 2019, the company is expected to spark a new facturer Qorvo announced it was acquiring recorded an unexpected loss cycle for Nokia, which already EMPLOYEES operator Orange surprised many Active-Semi International. With this acquisition, 8,600 by choosing Samsung to develop of €59 million, compared to a has more than 30 contracts Qorvo hopes to “create new growth opportu- 2018 REVENUE its 5G network. Very far behind its profit of €239 million in the signed around the world for 5G nities in 5G”, according to the press release. $3.09 BN competitors Nokia, Ericsson and first three months of 2018. infrastructure, particularly with As a wireless network specialist, Qorvo provides CAPITALISATION Huawei, the South Korean com- operator Salt in Switzerland. radio frequency solutions (antennas, filters, $7.85 BN pany is investing heavily to break into this market. But Samsung’s Analysts polled by Reuters amplifiers) for WiFi, 4G and 5G modems designed QRVO were expecting total profits to But so far, Ericsson is the best Network division still has a long for smartphones. way to go. According to Dell’Oro range between €175 million and positioned to take advantage Group, the company only has a €457 million. After selling off its of Huawei’s setbacks, and The company is one of Apple’s suppliers. 3% share in the global telecoms telephone business to Microsoft analysts remain cautious about Active-Semi International produces circuits infrastructure market, compared in 2013, the former global leader Nokia shares. designed to manage the power supply and to 28% for Huawei. charge of batteries. These products improve EMPLOYEES: 320,000 2018 REVENUE: $219 BN battery consumption in smartphones and con- 005930 nected objects. As energy efficiency becomes increasingly important, especially for objects connected via 5G, Qorvo estimates that the SKYWORKS: acquisition will increase its market opportu- THE ANTENNA TUNER nities to reach more than $3 billion. Due to the 5G deployment, Goldman Sachs revised its Like its competitors Murata, Qorvo and Broadcom, Skyworks Solutions recommendation from “neutral” to “buy”. develops RF electronic compo- nents for smartphones. The US company is well-known for its range of Sky5 modules specifical- ly used for 5G. EMPLOYEES: 8,400 2018 REVENUE: $3.868 M SWKS

ZTE: THE OTHER GIANT

Nokia CEO Rajeev Another Chinese firm, ZTE, is ac- Suri at the Mobile tive in 5G networks. At the Mobile World Congress World Conference in Barcelona in in Barcelona. February, it won the 2018 Global 5G Infrastructure Technology Leadership Award”. But hit by US sanctions, the company is struggling. EMPLOYEES: 75,000 2018 REVENUE: CN¥ 85.51 BN 00006353

52 53 5G SWISSQUOTE JULY 2019 5G SWISSQUOTE JULY 2019 SMARTPHONES MANUFACTURERS ARE RACING TOWARDS 5G

After a tough year, mobile phone manufacturers are counting on 5G to boost sales utting the cart before the “The arrival of 5G could boost this which may even shrink by almost 5% BY BERTRAND BEAUTÉ horse? While no coun- very mature sector by accelerating in 2019, according to estimates try in the world has yet the need to upgrade devices,” says from IDC. launched a 5G network, Sylvain Chevallier, a partner in charge all smartphone manufacturers (with of telecoms at consulting firm APPLE IS THE EXCEPTION Pthe notable exception of Apple) BearingPoint. But this transition On the list of brands announcing made the most of the global renown could happen very gradually. “Given their new 5G smartphones, one of the Mobile World Congress, held the services available with a good notable company is missing. Apple in Barcelona in February, to unveil level of 4G coverage, the advantages won’t launch a 5G iPhone before their first devices that are com- of 5G aren’t very clear for consum- 2020, unlike its main competitors. patible with the technology. But ers,” says Julien Leegenhoek, a Is this a risky move? Not necessarily. why were companies so excited to technological assets analyst at The Cupertino firm has prior experience unveil their smartphones when the Union Bancaire Privée (UBP). “How in this type of situation. During 5G market doesn’t even exist yet? many people need an ultra-fast the transition from 3G to 4G, Apple “Samsung and especially Huawei connection on a daily basis and are also waited a year before unveiling are also telecoms equipment manu- willing to pay more for it? For the time a compatible model, and did not facturers which design antennas being, demand for this type of encounter any blowback. As for the and other infrastructure neces- service seems pretty low.” move to 5G, Apple’s hesitation stems sary for 5G,” says telecoms expert primarily from the legal issues it has Pascal Martin. “For them, launch- been embroiled in in recent months. ing new devices is a way to push For its 4G models, Apple relied on operators to deploy 5G as fast as Intel – but Intel wasn’t able to supply possible and as a result make their 5G chips until 2021. investments in R&D profitable.” “The advantages of 5G aren’t very To break the stalemate, Apple For other brands, such as LG, Oppo clear for consumers“ had no choice but to reconcile this and Xiaomi, the move to 5G is more Julien Leegenhoek, a technological assets April with Qualcomm, its former of a marketing strategy: “It allows analyst at Union Bancaire Privée processor supplier, with whom it these groups to present themselves had been in a legal battle since as innovative, at the cutting edge of 2017. The US company is the only technology,” says Martin. “There’s one capable of providing Apple the same approach with foldable with the essential 5G modems, smartphones: they are flagship as there are no other contenders models that are designed to make According to consulting firm (Huawei is banned in the United the brand stand out.” In short, they TrendForce, only 5 million 5G States and Samsung produces its 5G boost sales in a slumping market. smartphones are expected to be own components). By signing a new According to analysts International sold worldwide in 2019, equivalent contract with Qualcomm, Apple Data Corporation (IDC), 1.4 billion to 0.4% of all mobile telephone accelerated the arrival of the 5G smartphones were purchased globally sales. This could increase to 7% of iPhone and stabbed Intel in the in 2018, down 4.1% over one year – total sales by volume in 2020 and back. Outpaced, Intel announced the worst year in the history of 18% in 2022. That’s not enough to a few days later that it was pulling the industry. revive the global smartphone market, out of the smartphone market.

54 55 5G SWISSQUOTE JULY 2019 5G SWISSQUOTE JULY 2019 IS 5G DANGEROUS? The ultra-connected future promised by 5G has sparked growing concerns. Some fear that this technology could lead to health problems. Here’s the latest on what science says.

BY BERTRAND BEAUTÉ

n Friday 10 May, about “Operators are trying to make us research now when operators have a thousand people believe that 5G has no risks, that already launched 5G and the network showed up to support it’s exactly like 3G or 4G. But that’s is growing every day. Shouldn’t we the citizen collective not true,” said Olivier Bodenmann, a have studied the potential effects “Stop 5G”, marching next to the Vaud engineer who is very active in beforehand?” asked Bodenmann. Hundreds of people OFederal Palace on the Waisenhaus- the Stop 5G movement. “This tech- “Furthermore, the impartiality of the protested against platz in Bern. They were seeking the nology has never been tested. So the government is questionable, consid- 5G on 10 May in immediate adoption of a moratorium people will be guinea pigs without ering it has already sold 5G frequen- Bern because of the harmful effects that on the development of 5G antennas. our consent.” cies to operators.” they believe could This new demonstration is proof of a engender growing wave of dissent against the So what’s the truth? Over the last this technology.

latest generation of mobile telephony 30 years, more than 25,000 scientific WERMUTH / AFP STEFAN in Switzerland. At the time that this More than 25,000 articles have been published on the article was written, 61,710 people scientific articles impact of radio frequencies used by was presented as the largest study humans, especially because the rats decided to classify radio waves as signed the petition “against 5G” and a mobile telephones. “Some believe ever done on the subject. Conducted received waves all over their bodies “possibly carcinogenic for humans” survey conducted in mid April by the have been published that this research is insufficient, but over nearly 10 years for approximately which has never been the case for in 2011, even though it believes “no magazine L’Illustré showed that 54% on the impact of the scientific knowledge acquired on $30 million, the study shows that telephone use.” significant risk increase has been of Swiss residents feared that 5G radio frequencies this subject is now much more than male rats exposed to radio frequen- proven in adults or children, regard- waves could be harmful to their health. used by mobile we have on most chemical products,” cies of 900 MHz, used by 2G and 3G, One of the largest studies on humans, less of the type of cancer”. said WHO, before affirming: “As of now, have a higher chance of developing known as “Interphone”, was published Operators are dismissing the con- telephones no undesirable health effects attrib- certain types of brain cancers. in the International Journal of Epide- Is 5G different than previous gener- cern. “We’ve already done this,” said utable to prolonged exposure to radio miology in 2010. The results showed ations? More toxic? “In Switzerland, Urs Schaeppi, CEO of Swisscom at a frequencies have been confirmed.” But surprisingly, the female rats that no increased risk of tumours the frequencies used for 5G are very press conference on 10 April. “Some were spared. Even more surprising is was observed after using a mobile similar to those for 4G,” said physician people were asking the same ques- To try to calm the uproar, the govern- This conclusion was refuted by that the life expectancy for male rats telephone over 10 years. Some of the Pierre Zweiacker, author of Vivre tions about 3G. And no health risks ment tasked the Federal Office for opponents who bring up several exposed to the radio frequencies was data suggest an increased cancer risk dans les champs électromagnétiques have been shown.” Olaf Swantee, CEO the Environment (OFEV) in September research articles, some of which higher than the control group... “We for people who use mobile phones [Living in electromagnetic fields] and of Sunrise, told us exactly the same 2018 to conduct a study on “the are worth citing. In November 2018, believe that the link between radio the most, but due to bias and errors, former head of the Electromagnetic thing (read the interview on p. 32). risks of launching 5G networks”. for example, the very official US frequencies and tumours in male rats no conclusion can be made. Faced Compatibility Laboratory at EPFL. In short: keep moving, nothing to The results will be published this National Toxicology Program (NTP) is real,” wrote the authors. “But these with this uncertainty, WHO advised “From this perspective, the situation see here! summer. “It’s strange to just be doing published the results of a study that results cannot be transposed to to limit exposure to radio waves and will be very similar to what we know

56 57 5G SWISSQUOTE JULY 2019

THE ELECTROMAGNETIC SPECTRUM

Mobile telephone Householdcurrent FM radiowaves (2G, 3G, 4G and WiFi Microwave oven 5G in the future?Infrared Visible light Ultraviolet (tanningX-rays lamps) (medicalGamma imaging)(radioactive rayssources) Videoinduction screens,burners cooking 5G) 50 Hz 20 kHz 50 kHz 30 EHz 30 PHz 3THz > 2.5 GHz 3.8 GHz 400 THz 770 THz + 30 EHz 20 kHz > 30 PHz > 400 THz > 750 THz > 700 MHz > 2.4 GHz > 5 26 GHz > 100

The multiplier prefixes (kilo, mega, giga, tera, peta and exa) are separated by a factor of 1,000. The X-ray wave thus has a frequency approximately ten million times greater than that used in mobile telephony.

today. So 5G will not be more danger- Another issue brought up by 5G oppo- government ensure that radio ous than 4G.” nents is the number of antennas. Cur- frequency levels are below the rently, approximately 19,000 locations authorised limits? Indeed, the frequencies currently host nearly 35,000 relay antennas in used in Switzerland for mobile Switzerland, i.e. one antenna for every “We don’t know how to measure telephones (2G, 3G and 4G) range 230 residents. “With 5G, the number the emissions from these antennas, from 800 to 2,600 MHz. 5G extends of relay antennas will increase be- but they’re being built regardless,” this range slightly, from 700 to cause as wave frequencies get higher, said Bodenmann. “I worry that Inscrivez-vousInscrivez-vousInscrivez-vous 3,600 MHz. But it is a known fre- their reach decreases,” said Zweiacker. measuring methods will change gratuitement gratuitement gratuitement quency, as WiFi frequencies go up “Nevertheless, the legal limits remain so that 5G stays within the legal etet etdécouvrez découvrez découvrez to 5,000 MHz (see infographic). unchanged. So exposure will still be limits.” “When 3G (UMTS) and 4G leslesles avantages avantages avantages du du du club! club! club! below recommended levels.” (LTE) were introduced, measuring mondovino.ch/mondovino.ch/mondovino.ch/ However that is likely to change. In the methods could only be developed avantagesavantagesavantages current spectrum, 5G speeds cannot Implemented in 1999, the Ordinance once these technologies were exceed 2 Gbit/s. But promoters of this on Protection against Non-Ionizing already in place, which took several technology have promised speeds of Radiation (ORNI) limits antenna months each time,” reassured the 10 Gbit/s to 30 Gbit/s. To reach that emissions to 4 to 6 volts per metre federal government in its letter to speed, it will be necessary to use “in (V/m) and exposure, which is what the Cantons. the longer term an even higher range humans receive, to 28 to 61 V/m LeLeLe clubclubclub desdesdes of frequencies (the range of tens depending on the frequencies. But deep down, perhaps people of gigahertz), also called millimetre For years, operators have lobbied are angry for a different reason: waves”, wrote the federal government intensely to raise these limits. They “I’m not against the technology,” in a letter to the Cantons on 17 April haven’t been successful yet. said Bodenmann. “But what’s the amoureuxamoureux dudu vinvin 2019. While no timeline has been set, purpose of always going faster? 4G amoureux du vin the prospect is concerning. “Millimetre But the issue still stands: currently is generally sufficient for the vast frequencies are much more unknown in Switzerland does not have a system majority of the population. 5G was PlongezPlongez dans dans l’univers l’univers de de Mondovino Mondovino the telephone industry,” said Zweiacker. to measure 5G waves, particularly invented to make us consume more, Plongez dans l’univers de Mondovino So new studies will have to be done to due to the fact that adaptive anten- force us to buy new smartphones etetet profitez profitez profitez des desdes conseils conseilsconseils de dede nos nosnos experts! experts!experts! prove they are harmless, even though nas will be used, which direct waves and connected objects... without these frequencies are already used in towards users, whereas tradition- worrying about the impact of radio other technologies such as radar and al antennas just radiated waves waves on our health. It makes radio navigation. everywhere. Therefore, how can the no sense.”

58

ENERGY SWISSQUOTE JULY 2019 ENERGY SWISSQUOTE JULY 2019

The mysterious conglomerate is gradually revealing more about itself before going public. It’s the largest oil group in the world, making more profits than all its competitors combined. We take a closer look. BY JULIE ZAUGG

n late March, Saudi Aramco announced a bond issue worth $12 billion. To present this 3 FIGURES I offer, which was entrusted to JPMorgan Chase and Morgan Stanley, the Saudi oil giant organised a pro- motional tour in eight cities across $111 BN the US, Europe and Asia. In London, Saudi Aramco’s net revenue in investors were welcomed in upscale 2018 – more than Royal Dutch meeting rooms in the Corinthia Hotel. Shell, ExxonMobil, Chevron, In New York, the CEO of JPMorgan Total and BP combined. Chase Jamie Dimon made an appear- ance. The finance world didn’t need

A major oil and gas any persuading: Saudi Aramco bonds production field attracted bids of $100 billion. of Saudi Aramco, 13.6 M located in the Empty Investors were drawn in by a The number of barrels that Quarter desert, near the United Arab 469-page prospectus, published the Saudi firm extracted per Emirates border. before the bond issue. The document day in 2018. As a compar- SAUDI ARAMCO : NEWSCOM / BARRY IVERSON PHOTOGRAPHY provides the first look behind the ison, ExxonMobil produced scenes of the world’s largest oil 3.8 million barrels per day. group. “The group’s oil production is multiple times greater than all of its THE GIANT competitors combined, it has access to immense reserves and its opera- tional costs are much lower than its $1,500 BN competition,” says Norman Valentine, The current valuation of Saudi research director at energy consult- Aramco, which is expected to PREPARING ing firm Wood Mackenzie. go public in two years, accord- ing to Bernstein Research. The Saudi firm, which produces approximately 10% of the world’s crude oil, generated $360 billion in FOR ITS IPO revenue last year. It has 257 billion barrels in its reserves, and its

60 61 ENERGYXXXX SWISSQUOTESWISSQUOTE JUILLET JULY 2019 2019 ENERGY SWISSQUOTE JULY 2019

enormous Ghawar field is also the cccccccc “The government doesn’t hesitate “The volatility of oil prices is world’s largest: this field alone to pressure the company to generate another risk for the company,” says xxxxx generates 3.8 million barrels per day more money,” adds Kamel. It also Valentine of Wood Mackenzie. In – equivalent to US giant ExxonMobil’s sets its production levels based on 2016, when prices fell to $32 a total daily production across all “energy sovereignty objectives and barrel, Saudi Aramco made just fields. Furthermore, extracting one other considerations”, according to $13.3 billion in profits – 12% less barrel costs Saudi Aramco only the bond issue prospectus. than it made in 2018. Furthermore, $7.50, compared to around $30 for demand for black gold will likely competitors, which makes it fall over the next decade as govern- extremely profitable. ments begin initiatives to fight climate change. “This context will “Its very low production costs are Indeed, the crown reduce oil prices,” says Kamel. the result of Saudi Aramco’s monopoly prince hopes to on Saudi oil,” explains Jim Krane, To mitigate this risk, the Saudi from the Center for Energy Studies finance his big conglomerate is looking to diversify at Rice University in Texas. projects for futuristic its sources of revenue. “It is seeking cities with revenue to double its gas production over the from Saudi Aramco next 10 years and increase its refining capacity to 10 billion barrels per day, AMERICAN ROOTS but it is also aiming to process three billion barrels into petrochemical Saudi Aramco owes its products, such as plastics,” says Alan beginnings to US oil compa- Because of this association, the Gelder, a refining specialist at Wood nies. In 1933, Standard Oil company could suffer from political Mackenzie. Funds generated by its of California received an oil instability generated by the current bond issue will help finance the lease from the Saudi gov- transition to the third generation of acquisition of 70% of SABIC, a Saudi ernment, 50% of which was The Ras Tanura oil the Al Saud dynasty led by Mohammed petrochemical group, for $69 billion. transferred to Texaco three refinery, largest in bin Salman, according to Krane. years later. In 1938, the two the world, owned and partners – operating under operated by Saudi Indeed, the crown prince hopes to “Saudi Aramco has recently invested the name California-Arabian Aramco, situated in finance his big projects for futuristic in refineries located in South Korea, Standard Oil – discovered the eastern oil-rich cities and luxury tourist complexes Malaysia, China and India – countries large oil reserves, sounding province on the along the Red Sea with revenue where the demand for oil will continue the starting gun for the Saudi shores of the Gulf. NEWSCOM / BARRY IVERSON PHOTOGRAPHY from Saudi Aramco. to grow in the coming years,” Gelder oil industry. In 1944, their joint venture was renamed Arabian adds. Last year, the group acquired American Oil Co. (Aramco). “The group also enjoys another tions,” explains Ayham Kamel, head a gigantic refinery and petrochemical Four years later, Standard advantage: crude oil from this region, of Eurasia Group’s Middle East and complex in Johor on the Malaysian Oil of New Jersey (the future concentrated near the Gulf, is North Africa research team. Between peninsula. In February, it signed a Exxon) and Socony Vacuum naturally pushed to the surface by 2015 and 2017, the oil giant contrib- ANALYST’S ADVICE $10-billion contract with Chinese (the future Mobil) purchased significant underground pressure, uted more than 70% of Riyadh’s arms company Norinco to develop a 30% and 10% of Aramco’s shares respectively. In 1950, and it contains very little water, which income, according to figures from similar site in Panjin, in north-eastern the firm began to share its makes extraction easier.” And since Fitch Ratings. Last year, Saudi Aramco “A PROFIT-MAKING MACHINE” China. It has also begun exporting its profits with the Saudi state, the oil fields are located on land paid $102 billion in taxes to the Saudi gas in liquid form. “Its first liquefied pressured by King Abdu- owned by the state, the company government, as well as a dividend Even though it hasn’t gone assets, compared to 30% for natural gas (LNG) cargo was sold in laziz. Between 1973 and 1976, doesn’t need to acquire the land of $58 billion. public yet, Saudi Aramco is BP, for example. The company’s late April,” says Gelder. Aramco was gradually na- or pay commission to its owners. closely monitored by analysts. main risks are geopolitical, due tionalised, with support from “It’s a veritable profit-making to its location in Saudi Arabia. The next step for the conglomerate the United States and Israel machine,” says Rehan Akbar “This context is why we have during the Yom Kippur War. Too good to be true. And yet, will be to go public. Initially announced Saudi Aramco’s profitability is not of Moody’s. Indeed, the Saudi given it an A1 ranking (ed. note: in 2016, it has been pushed back True to its American origins, firm enjoys a phenomenal which is a lower ranking than the company has retained perfect. Each barrel extracted The Saudi firm cash flow when oil prices are the big Western oil compa- several times. “The IPO is now its liberal values. Many of its in 2018 only brought in $26, whereas generated high. “Even when prices are nies),” says Akbar. The analyst planned for 2021,” says Valentine. employees live in residential firms such as Shell and Total recorded low, the company remains believes that oil will continue Only 5% of its shares will be up for complexes filled with restau- profits of $38 and $31 per barrel, $360 billion in profitable, unlike many of its to generate the majority of the sale, for a value of $100 billion – rants, cinemas and basketball competitors that are faced with company’s revenue, at least in courts. There are also several respectively. “Saudi Aramco’s tax bill revenue last year but it will be the largest IPO ever is extremely high because the Saudi higher costs,” says Akbar. Saudi the near future, although re- listed. Stock exchanges will be sure women in executive positions. Aramco also has a very solid fining, petrochemical products government depends almost entirely balance sheet with low debt: and gas account for a growing to compete fiercely to try to land on the company to finance its opera- it makes up just 5-15% of its percentage of its income. this big listing.

62 63

INTERNET SWISSQUOTE JULY 2019 INTERNET SWISSQUOTE JULY 2019

Mr Bags, a Chinese star streamer who loves handbags. He has partnered with big industry names, such as Montblanc and Longchamp. Professional livestreamers In China, many livestreamers receive virtual gifts sent by their fans. Some are even brand ambassadors. Now streaming platforms are looking to cash in.

BY JULIE ZAUGG, HONG KONG

he tension is unbearable. strating eel fishing and professional Shen Man, a Chinese live- gamers devoted to Honor of Kings, a streamer who spends her Chinese video game. Some film live, Tdays talking with fans and singing while others post short videos – less songs on videos posted to the YY than one minute long – that are platform, is participating in the pre-recorded. platform's annual contest. The event will crown the internet star that receives the most paid votes. “I'm not calm... Hurry up and vote!” said Each of these the 21-year-old woman with long platforms has black hair and a tense smile. Shen

around 100 to 300 ROBERTRO FRANK Man, who earns $40,000 per month million active users from her videos, will end up earning $186,503 from her fans. And she’ll per month win the contest. to 40 million yen (6 million francs) biggest names (see also Analyst's FACTORIES OF LIVESTREAMERS per year, but the majority of live- Opinion on p. 69), along with Inke and This scene is one of many in the “It's a very lucrative industry that streamers make just enough money Meipai, both listed on the Hong Kong The livestreaming industry Some of these firms take has become so important in a percentage of revenue from documentary People's Republic of is worth more than 5 billion yen to live on. exchange, and Huajio, which is pre- China that there are now in- their stars (10–20%) while Desire, which delves into the lives of (757 million francs) and whose paring its IPO. Huya and Douyu are cubators to cultivate internet others provide a monthly several internet stars. The Chinese annual growth is approximately The first platforms – YY and Six focused on gamers, whereas Douyin stars. “These agencies find and salary. Ruhnn, which raised livestreaming industry is a strange 15%,” said Yuwan Hu, analyst at Rooms – began around 2008. They and Kuaishou are popular for short train talent, provide video con- $125 million in early April world. There are young women with Daxue Consulting. In 2018, live- were quickly joined by a whole host videos and Bilibili is the choice for tent and manage careers,” said during its Nasdaq IPO, is one porcelain skin who sing playback streaming had 425 million users, of other sites and apps. There are anime fans. Zhicong Lu, a researcher at the of these livestream factories. University of Toronto. “Agencies It represents 113 stars, who vocals in a studio decorated to look while the short videos segment had now more than 200 platforms in the even buy followers and virtual generated sales equivalent like a bedroom, migrant workers 520 million, according to Hu. The country. YY, MOMO and Yizhibo, all “Each of these platforms has around gifts for their stars, in order to 2 billion yen (303 million telling dirty jokes, farmers demon- most well-known stars can earn up listed on the Nasdaq, are some of the 100 to 300 million active users per to boost their popularity.” francs) in 2018.

66 67 INTERNET SWISSQUOTE JULY 2019 INTERNET SWISSQUOTE JULY 2019

month,” said Hu. Douyin (ed. note: known as Tik Tok outside of China) WESTERN LIVESTREAMING LAGS BEHIND actually has more than 500 million.” Livestreaming is far less ad- States, along with public events Some are testing innovative formats, vanced in the west, but there streamed in real time and “pri- such as Huajiao, which just created a are still some well-known vate” streams which are only virtual reality livestream channel. platforms: Periscope, Facebook seen by close friends. “In China, Live, YouTube Live and Insta- this genre barely even exists,” gram Stories. “The one with said Lu. “Most livestreamers are the most users is Twitch, which broadcasting to an audience of specialises in videos of gamers,” strangers.” The sources of reve- Style blogger said Zhicong Lu, a researcher nue are also different. Live- Becky Fang sold at the University of Toronto. streamers in the west generate This genre dominates the seg- most of their revenue from sub- 100 turquoise Mini ment in Europe and the United scriptions that fans pay for. Coopers in five minutes names of the most generous donors to support their favourite livestream- are displayed in the corner of er,” said Zhicong Lu, a researcher To generate revenue, the platforms the livestream. at the University of Toronto who run adverts within the videos as has studied the phenomenon for a link or a banner. But for the most The platform receives a commission several years. A livestreamer in part, they rely on virtual gifts paid on virtual gifts, which can be between action for the Douyu. for by fans. Stickers of roses, beers 30% to 70% based on the notoriety Another source of revenue is brand com platform, here at a square in Wuhan and little hearts pop up on the of the streamer. The star can then partnerships with internet celebrities. City, Hubei Province, screen as livestreamers receive convert the rest into real money. “Web stars will produce specific on 31 December, 2018.

them, and viewers pay on average Annual competitions, such as the content designed to promote a brand's KEYSTONE / MAXPPP a handful of yen for each stick- one described in People’s Republic of products,” said Cyril Drouin, head er. “But some gifts can be up to Desire, make it possible for live- of e-commerce strategy at Publicis 3,000 yen (454 francs),” said Hu. streamers to earn a lot of money in in China. In 2017, Jaeger-LeCoultre (760 francs) for lesser-known stars A virtual Porsche costs 666 yen a short time. “During these events, partnered with Papi Jiang, a comedian ANALYST'S OPINION to 1 million yen (151,000 francs) (100 francs) on Inke. To encourage it's not unusual to see fans spend with 27 million followers on Weibo, for big stars,” said Drouin. Here too, fans to spend more money, the 800 or 1,000 yen (120 to 150 francs) to film a video about its new Reverso platforms receive a commission. watch line. GROWTH, COMPETITION AND CENSORSHIP In 2017, sales generated through brand partnerships reached 33 billion The future of livestreaming is fall in and out of favour with Similarly, Mr Bags, a streamer bright for investors as well. the public. They also haven’t yen (5 billion francs), according who loves handbags, partnered Due to the sheer number and found a truly profitable way to to consulting firm Frost & Sullivan. with Givenchy, Longchamp and loyalty of their users, platforms make money, like many other Montblanc. He even produced a YY, MOMO and Bilibili are most social networks. Some streamers have even started capsule collection with Tod's. Style favoured by analysts. Yizhibo to sell products through platforms blogger Becky Fang was recruited is another platform to follow, Furthermore, the fact that these integrated with e-commerce sites since it is integrated with Weibo companies are up against by Burberry, Giorgio Armani and (Chinese Twitter) and hosts censorship from the government Taobao and JD.com. “The products Tiffany & Co. In 2017, she sold many celebrities, giving it a doesn't help. The Chinese gov- are shown and described during the 100 turquoise Mini Coopers in five competitive advantage. Huya is ernment shut down 400 apps livestream and viewers can buy them minutes after promoting the car also promising: despite a loss last year, accusing them of host- directly via a link superimposed onto on her WeChat account. “In China, of $282 million in 2018, its share ing content that was “violent, the video,” said Jun Wen Woo, an consumers are very suspicious, price has gone up 55% since it pornographic, or promoting online video expert at IHS Markit. went public a year ago. gambling and other immor- because there is a lot of counter- al values”. On the Kuaishou feiting and frequent food scandals,” But like Huya, most streaming platform, tattoos and expletives It’s an interactive experience that said Drouin. “This form of promo- platforms in China are in the are now banned. “The platform allows consumers to ask the streamer tion reassures consumers, because red. Douyu, which just request- had to hire hundreds of censors questions and get a real idea of what it's coming from personalities that ed an IPO on the New York to monitor all its content,” the product is like. Kuaishou, Yizhibo consumers trust.” exchange, lost $127 million in said Lu. A very popular video and MOMO have also started integrat- 2018 and Inke lost $36 million genre, where young women eat in 2017. This industry is fiercely bananas in a suggestive manner, ing e-commerce functionality into In exchange for their services, competitive. Platforms are also was also banned, as well as their livestreams. Cosmetics, infant streamers receive payment from subject to the risk that the celeb- a series of livestreams filming formula and produce all sell quite well DR brands that ranges “from 5,000 yen rities hosted on their sites will teenage mothers. this way.

68 69 FREE TIME SWISSQUOTE JULY 2019

FIREFOX SEND TO READ, SECURE FILE SHARING This new application from Mozilla, SMART PORTFOLIOS TO DOWNLOAD Free the developer behind the Firefox browser Google Play and messaging client Thunderbird, allows users to send encrypted files securely from end to end in just a few clicks. With a maximum size of 2.5 GB THE SIMPLE WAY TO AN ECONOMIST WALKS per file, the app easily covers most INTO A BROTHEL file-sharing needs. AND OTHER UNEXPECTED PLACES TO UNDERSTAND RISK By Allison Schrager ( Portfolio, 2019 ) GEEKBENCH 4 GROW YOUR MONEY WHAT’S UNDER THE BONNET ? What’s riskier: making an action film As the name indicates, Geekbench is or a horror one? What’s the best time Free designed for users who like to measure to get to the airport? By answering these CHF 30.- Google Play the performance of their devices, including questions and many others, New York App Store smartphones and computers. From RAM economist Allison Schrager presents usage to graphics cards and stress tests five principles for better managing on all types of CPUs, Geekbench 4 has risk in economics, a topic to which she everything covered. has dedicated much of her career. This fascinating and enjoyable read provides clear examples and numerous interviews +20.4% with figures dealing with questions of risk, from a US general in Iraq to the ELK 3-YEAR NET PERFORMANCE Manhattan paparazzi. FAST CURRENCY CONVERTER An incredibly useful and easy-to-use Free, app, Elk converts sums of money into with paid various currencies in the blink of an upgrades eye. The concept? Rather than requiring App Store FIREFIGHTING precise sums entered by hand, the Automated Investing. Professionally Managed. THE FINANCIAL CRISIS AND ITS app provides a set of pre-established LESSONS and up-to-date amounts that serve as Open your account at internaxx.com By Ben S. Bernanke, Timothy F. Geithner, benchmarks. The free version includes Henry M. Paulson Jr. a few basic currencies, but the paid version is necessary for more exotic ones. (Profile Books Limited, 2019)

What better than a report by the decision-makers themselves to help understand the underlying causes of SPEEDTEST CHF 20.- the 2008 crisis? That’s the subject THE INTERNET SPEEDOMETER of this highly-anticipated book, authored When it comes to connection speeds, by former Fed president Ben Bernanke Free both wired and mobile internet pro- with the support of former Treas- Google Play viders tend to advertise much greater ury secretaries Timothy Geithner and App Store performance than what users really Henry Paulson. Examining the causes of experience. Speedtest can quickly veri- the crisis in great detail, the three authors fy actual connection speed though a explain their actions that, according to series of tests with conclusive results. All investments carry a degree of risk. Past performance is not a reliable indicator of future them, prevented the crisis from becoming results. Net 3-year cumulative return on a €100,000 investment in Internaxx Smart Portfolios (Euro a second Great Depression. The authors Growth Profile): 20.4% (as at 28/02/2019). Net cumulative return since inception (14/10/15): 20.8% (as at hope that this enlightening read will be useful for their contemporaries and 28/02/2019). Internaxx Bank S.A. Luxembourg, RSCL B78729. Bank licensed in Luxembourg and subject successors alike. to the supervision of the CSSF.

70 RUBRIQUEAUTO SWISSQUOTESWISSQUOTE MARS JULY 20162019 AUTO SWISSQUOTE JULY 2019

(longitudinally-mounted engine, tion in terms of legibility, and this the potential of the chassis clearly Xxx rear-wheel drive or optional four- touch of authenticity is sadly missed. exceeds that of the engine, which is wheel drive). Its sleek, tapered lines On the road, we preferred to look at somewhat unassuming. That is not are easy on the eye and promise an the remarkable head-up display, even to say that the 190 hp, 400 Nm two-­ impressively low drag coefficient of if it meant displaying the speedom- litre diesel engine is disappointing in 0.23 CdA, although this is somewhat eter or other power meters on the terms of standstill and in-gear ac- mitigated by the sporty additions and central touch screen. celeration – quite the opposite – but the wider tyres of our 320d xDrive. it doesn’t deliver the kind of feeling The same blue used on the four-pis- and character that you might expect, ton front brake callipers is also found given its evocative physical pres- on the striking edging around the ence. This 320d xDrive Pack M, with laser headlamps! Fans of Game of This 320d xDrive Adblue low-emissions technology, is Thrones will need to keep their cool is unquestionably unquestionably a good long-distance when they cross swords with this king machine (observed fuel economy of the night! Devastatingly efficient in a good long of 5.5 litres on Swiss motorways the dark, its adaptive LED headlights distance machine and nine litres per 100 km in sports are nevertheless harmless. mode). However, with the price of the tested version approaching an At the rear, the lights are reminis- eye-watering 85,000 Swiss francs, cent of the i8, underscoring a large The archetypal dynamic saloon with there are ways of opting for a livelier 480-litre boot that comes with agile handling, the 3 Series lives version if you are prepared to forgo hands-free opening. The three-way up to expectations on the road. As- some bits of kit. For example, the split-folding rear seats are a plus, sured through corners, well-balanced famous six-cylinder engine comes but the aesthetic effect is spoiled by and with incisive handling, it brakes with the 330d in a 265 hp (diesel) the visible beige panel. Inside, there hard whilst ensuring passenger version or with the M340i in a 375 hp is an undeniably high-end feel, boost- comfort with adaptive dampers com- version. In any case, captivated by its ed by the outstanding “M” seats. The bined with the various driving modes. rock-solid image, customers are un- early, rather austere generations of When you add the flawless traction likely to baulk too much at spending the 3 Series are long forgotten. The provided by the xDrive AWD system big on such a first-rate car. That’s AUTO latest incarnation comes with an to this rather flattering picture, the magic of the 3 Series. imposing array of buttons, screens Serial winner and sensors, all seamlessly inte- grated into a sophisticated decor. It BMW has restored its mid-range model back to its former glory. The new takes a while to get to grips with all 3 Series features the same agile, dynamic handling that established the car’s the features, but the “BMW Intelli- reputation, with undeniably premium styling. We tested it. gent Personal Assistant” provides the answers to any mysteries. The driver-turned-magician can use the BY RAPHAËL LEUBA side cameras to create the illusion of being everywhere at the same time and turn the audio volume down with a simple flick of the finger! We come back down to earth by switching the fter substantially diversifying Faced with the difficult task of diesel engine on. Its gravelly noise is A its line-up with various SUVs, updating its longstanding model, softened by the car’s double glazing, BMW 320D XDRIVE minivans and even a range of elec- BMW’s designers have come up with and almost disappears entirely once tric vehicles, BMW has got back to a design that meets expectations. we move off. A trusted partner for ENGINE : work on its talismanic series, the Despite adding a few centimetres to many years, the eight-speed ZF au- ALFA ROMEO GIULIA FOUR-CYLINDER, TURBO DIESEL, 1995 CM3 classic 3 Series saloon. The range, its length (+8.5 cm to 4.71 m), this tomatic gearbox is now updated with A benchmark among D-segment sports HORSEPOWER : launched in 1975, remains a main- seventh generation – G20 – remains proactive settings. It goes almost THE ALTERNATIVE cars. Focusing more on the essentials, 190 HP AT 4,000 RPM stay for lovers of “active” driving. easily identifiable. The M Sport trim, unnoticed, demonstrating its effi- the “berlina” sculptural design shies ACCELERATION : Ever faithful to BMW’s golden rules, the version we tested, certainly looks ciency. The fully pixelated dashboard away from excessive high-tech equip- 0 TO 100 KPH: 6.9 SECONDS this Series 3 possesses a good mix impressive. It compares very well leaves us somewhat lukewarm in an ment. Is that really such a bad thing? PRICE : of style, practicality and perfor- with the Alfa Giulia and the Jaguar era where even fridges have a digital 2.2 JTD Q4 Veloce 210 hp STARTING AT CHF 56,000 mance, both in terms of handling XE, to name only two competitors screen. It must be said that BMW’s From CHF 56,000 and technological features. with the same engine architecture analogue dials were close to perfec-

72 73 TRAVEL SWISSQUOTE JULY 2019 TRAVEL SWISSQUOTE JULY 2019

The historic centre of Valparaíso.

efore arriving in TRAVEL Valparaíso, visitors from the West land in Santiago, as there is CHILE Bno airport in the coastal city. The The hills of immense capital city, nestled in a valley between two cordilleras, cloaks its charm under clouds of fog Valparaíso: just South and glass skyscrapers. Nonetheless, America Santiago is worth a stop, if only to wander the colourful streets in the a step away Bella Vista neighbourhood. Students VALPARAÍSO practice their swings in public squares. Busy businessmen have lunch in the from paradise Plaza Baquedano diners. At night, when Chile’s urban gem is an antique theatre that looks out onto you’re practising your folk songs at the ocean, inviting visitors to upend their sense of direction as they wander through its streets.

BY SALOMÉ KINER ISTOCK

74 75 TRAVEL SWISSQUOTE JULY 2019 TRAVEL SWISSQUOTE JULY 2019

seventh heaven were divided recommended), you may come across poems by heart to enjoy the guided a succession of frames offering The district of Cerro Alegre, a labyrinth into forty-four hills. It’s difficult to La Sebastiana. A jewel perched on tour of Neruda’s former hiding place. various views of the seascape. The of colourful streets. describe the hallucination that a hill, it is one of Pablo Neruda’s Keeper of madcap items, lover of documentary film that retraces his visitors experience the first time three houses in Chile, along with La old maps, master prankster and king life also gives an overview of Chile’s they see the steep, multicoloured, Chascona in Santiago and Isla Negra of cocktails, Neruda also loved the political history in the 20th century. untamed hillsides of Valparaíso. From where he is buried. You don’t need ocean. He loved it even more from the Mirador Paseo Yugoslavo, expe- to know all the Nobel Prize winner’s land: the windows of his house are The riches of the Pacific can be found rience breathtaking architectural in the alleys of Caleta Portales. vertigo as the city descends into the San Pedro, patron saint of fishermen, ocean like a gull on its prey. After- watches over this fish market that El Cajón del Maipo, wards, head to the Palacio Baburizza, an excursion near dates back to 1930. The reineta, a an Art Nouveau building that is now Valparaíso. white fish and queen of the grill, will home to a fine arts museum. have you salivating at the makeshift stalls. The street vendors’ faces are tanned by salt, sun and seaside life, and their voices mix with cries from seagulls perched on the roof of the It’s difficult to market. Fillet preparers, in a tidy row, describe the halluci- work in a fascinating choreography. nation that visitors Below, under the dock, a colony of sea lions flap on the beach, waiting experience the first for a tasty morsel to be tossed down. time they see the With its plastic chairs and weathered steep, multicoloured, façade, El Rey del Pescado Frito is untamed hillsides the best place to savour fried food alongside locals in the port. of Valparaíso

You can reach this exceptional van- tage point via the El Pera funicular. The Pacific coastline

ISTOCK The jolting carriages, considered is unmissable with historic monuments dating from the its stunning sunsets last century, are the only ones still the local bar, hunger will strike. Head functioning out of the 30 that used over the water

to the street stalls and order a com- to run in the city. The neighbouring SHUTTERSTOCK pleto, a Chilean hot dog covered in Reina Victoria funicular ends at the GETTING THERE HIKING IN THE VALPARAÍSO REGION From Geneva or Zurich, flights avocado purée, traditionally followed terrace of the Fauna, an ideal spot to Santiago with a stop in Madrid by a mote con huesillos, a dessert for having lunch while taking in views start at 900 Swiss francs per drink made of wheat grains, caramel- of the bay and freight ships. Many travellers visit Chile’s Visitors can discover terrain re- The Pacific coastline is unmissable person. ised syrup and dried peaches. It may cities before discovering the sembling moonscapes, as well as with its stunning sunsets over the sound strange, but try it – you’ll love it. At Fauna, try the ceviche (a marinat- country’s natural sites packed barren, tobacco-coloured, emer- water. While gazing at the sun as it To get to Valparaíso, you have two ed raw fish speciality) with a pisco with exceptional phenomena. ald and vine-covered landscapes sinks into the sea, you can also make options: rent a car at the airport The next day, walk up Cerro San sour, a Peruvian cocktail that has From Cape Horn to Torres del and dust-covered roads that are out the Concon dunes and the beach- Paine national park, Patagonia visually striking even before you and take route 68, or take the bus Cristobal, a hill at the top of which become popular in Chile, with each is globally renowned as a haven step foot on them. A paradise for es of Viña del Mar, a coastal resort for a round trip of approximately you’ll find a statue of the Virgin Mary. bar offering its own take on the drink. for adventure-seekers. Many kayaking, rafting and climbing, neighbouring Valparaíso and acces- 20 francs. From there, admire the divine pano- From there, the cerro Alegre neigh- less extreme excursions are also El Cajón del Maipo can be ex- sible via public transport. “Valpo” recorrido.cl rama of buildings and stadiums... bourhood is an open-air museum, available in the Valparaíso and plored either on foot or on horse if seems both ancient and modern, but hidden under a layer of smog. On the best experienced by strolling through Santiago region known as El you wish to reach the Las Animas might not be ideal for fans of un- funicular back down, Valparaíso’s the tiny winding roads as you admire Cajón del Maipo. This canyon is waterfalls or San José volcano. tamed landscapes. Those discerning located at the foot of the Andes, on The most fearless explorers will PLACES TO STAY horizon and the Pacific Ocean will the street art frescoes and the the border of Chile and Argentina, climb the San Francisco glacier. folk can head to the hillside village Boutique Hotel Acontraluz seem within touching distance. apparent chaos of houses stacked in the Maipo river basin where of Quintay to dine with their feet in for its beautiful décor and Activities and organised tours: and mixed together as far as the eye several tributaries meet. cajondelmaipo.com the sand, visit the former whaling terraces overlooking the bay. The name of the city – pronounced can see. Following the hand-painted factory-turned-museum and watch Starting at 150 Swiss francs per night like a song – means “paradise”, as if signs (digital assistance is strongly the waves break on the cliffs. hotelacontraluz.cl

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SWISSQUOTE JULY 2019 BOUTIQUE SWISSQUOTE JULY 2019

ELECTRIC JETSURFING BOUTIQUE A new sport for gliding aficionados, the jetsurf is a motorised board that can glide on a flat sea, lake or other surface without large waves. The latest from Czech leader Jetsurf, the board is unique in SUMMER BREEZE AND SHADE that it uses an electric motor. At 180 cm long and only 15 kg, the board can reach up to 50 km/h and has a range of 35 minutes non-stop. With its leaf shape inspired by nature and off-centre stand, the jetsurf.com Leaf for Life moveable parasol From CHF 11,000.- absorbs wind energy, and its shape is designed to not blow away. Ideal for the beach and boating, this sunshade is equipped with a 16W flexible solar panel and a USB port for recharging electronic devices. The umbrella‘s material A SUITCASE FOR THE GLOBETROTTING CYCLIST also has double UV protection. leaforlife.com Travel the world with your bicycle: German manu- CHF 135.- facturer B&W‘s XXL suitcases are designed to transport a range of bike models. Equipped with a top shell that can be removed to make packing eas- ier, a patented self-tightening buckle system and adjustable pull-handles, the newest bike box can hold an entire bicycle with a frame size of up to 62 cm. b-w-international.fr A WELL-MAINTAINED SLOPED LAWN CHF 360.-

With four motorised wheels, Husqvarna‘s Automower 435X AWD mows lawns by navigating around obsta- 39,000 GOLF COURSES ON YOUR WRIST cles and even mows sloped areas at a 70% incline. The all-terrain robot can be controlled remotely via Equipped with multiple technologies including a GPS, accel- smartphone or by voice using the Alexa personal as- erometer, gyroscope and microphone, the new TAG Heuer sistant. In addition to its range of 1 hour 40 minutes, Connected Modular 45 Golf Edition provides golfers with it can detect objects using ultrasound and stop 3D maps of 39,000 courses around the world, as well as automatically if there is an object in its path. a complete analysis of the golfer‘s performance via an app. husqvarna.com The 45 mm watch has a white band with green stitching CHF 5,650.- and a black ceramic bezel laser-engraved with the numbers 1 to 18, for the 18 holes on a course. tagheuer.com CHF 1,950.-

SUSTAINABLE BAGS FAST PIZZA AT HOME

California-based outdoor sports brand The North Face Designed by the English inventor Tom Gozney, the Roccbox has partnered with London designer Christopher Raeburn can cook a pizza in 60 seconds flat. With gas and wood to create a collection of bags made from recycled tents. burners combined with a highly refined insulation system, Whether a tote bag, backpack or shopping bag, each this portable oven can reach up to 500°C in just 15 minutes. model is unique, with straps emblazoned with the motto Light and compact, it is easily transportable thanks to its of the UK-based designer who specialises in upcycling retractable feet. It can also be used as a barbecue grill. military apparel: “Remade, Reduced, Recycled”. gozney.com thenorthface.ch CHF 645.- From CHF 115.-

78 79 J’AI TESTÉ... SWISSQUOTE JUILLET 2019

J’AI TESTÉ DÉGUSTER DE LA TOMME VAUDOISE À 125 MÈTRES DU SOL PAR MARTIN LONGET

Swissquote Magazine a gravi la plus haute antenne de Suisse, à Sottens, dans le canton de Vaud. Une aventure qui allie découverte du patrimoine et sensations fortes.

a terre paraît bien loin à cette francs par personne – où l’on prend L’ascension n’est pas de tout repos, hauteur vertigineuse. Surtout son temps. Compter environ quatre le grimpeur novice pétrifié par L au bout d’une très longue heures en tout, et en petit comité le vide ayant le réflexe de se cris- échelle verticale qui n’en finit plus (six personnes maximum), pour per sur les barreaux de l’échelle de monter – ou de descendre, c’est découvrir l’antenne et son histoire, au lieu de s’aider de ses jambes. selon. « Vas-y, encore quelques et déguster des produits régionaux Résultat : ça tire sur les bras et on mètres », m’encourage mon guide, perché dans le vide, tout en se ré- se crispe davantage. ancien pompier professionnel de galant des anecdotes, nombreuses la ville de Lausanne. Encore un et souvent truculentes, qui se Enfin parvenu à 100 mètres de dernier effort et me voici arrivé au racontent sur ce géant de métal. hauteur, c’est la pause apéro (sans sommet, à 125 mètres à pic au- alcool) sur une petite plateforme, dessus du sol. La vue sur la cam- L’aventure commence dans les avant d’attaquer la dernière ligne pagne environnante est magnifique, locaux de Gecko, le temps de droite. L’occasion d’admirer le pay- même en ce temps maussade. s’équiper d’un baudrier et d’un sage et de penser qu’on commence GECKO ESCALADE casque et de faire connaissance à se faire à l’idée du vide, presque avec l’équipe. Après une petite malgré soi. Une impression vite formation technique accélérée, démentie par la dernière vingtaine Le concept : une qui a l’avantage de nous rassu- de mètres qui nous sépare du ascension conviviale rer complètement sur les me- sommet : la structure devient de sures de sécurité, drastiques, plus en plus étroite et tangue sous où l’on prend mises en place par la société l’effet du vent, ou de notre propre son temps d’escalade, nous voici partis à la poids. Peu rassuré, on escalade les conquête de la tour, tout à coup derniers obstacles pour atteindre très imposante vue d’en bas. le sommet de l’antenne. Accroché Structure unique en Suisse, l’an- à la structure par une simple corde, tenne de Sottens était la pièce Première impression : ça monte on a l’impression de flotter dans le maîtresse de l’ancien émetteur vraiment très vite, et on se retrouve ciel. Sensations garanties. national construit en 1931, qui a en quelques secondes ou presque diffusé pendant des décennies les à une hauteur déjà imposante. On Le retour se fait à pied ou en A unique world. An unforgettable time. ondes de la radio télévision suisse comprend alors qu’il faudra com- rappel, à choix. Ne reculant Imagine a place which offers almost everything except appointments, stress and the hectic pace of sur la terre entière ou presque : on poser avec cette sensation de vide devant aucun défi, nous avons pouvait la capter jusqu’à Dakar, à absolue, qui nous accompagnera opté pour la formule « offen- every day life. There is such a magical place – the Grand Hotel Heiligendamm with its six classical 4’200 kilomètres de là ! Mise hors jusqu’à la conquête du sommet. sive », qui consiste à enjamber style buildings, also known as the ‚White Town by the Sea‘. service en 2010, on peut désormais « Cette première étape est cruciale, la barrière de la plateforme la gravir grâce à un programme si on la surmonte on arrive toujours située à 100 mètres de hau- développé par Gecko Escalade, dont au bout », commente mon coach du teur et à se laisser suspendre Grand Hotel Heiligendamm · 18209 Bad Doberan-Heiligendamm · Germany les locaux sont situés à quelques jour, qui précise que les cas d’aban- et descendre lentement dans le Telefon: +49 38203 740-7676 · [email protected] · www.grandhotel-heiligendamm.de centaines de mètres de l’antenne. don sont extrêmement rares. Quant vide, en attendant de toucher Le concept : une ascension convi- aux autres, ils sont tous redescen- le sol. Qu’on est, soyons hon- viale – facturée entre 160 et 275 dus sains et saufs... nête, pas fâché de retrouver.

80 10173_1905_CODE_1159_SWISSQUOTE_MAGAZINE_200x260_ENG.indd 1 THEM. YOU MUSTFIRSTMASTER TO BREAKTHERULES, AUDEMARS PIGUET BOUTIQUES ZURICH | GENEVA ru ate of Proud Partner 22/05/2019 16:01

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SWISSQUOTE N°3 JULY 2019 5G: THE RACE IS ON WWW.SWISSQUOTE.COM