Pascal Grieder, the CEO of Salt, kicked off the AIC’s luncheon series for 2020 as our guest speaker on February 7 at the Métropole Hotel in Geneva. With a wide smile and trendy sneakers, Mr. Grieder spoke with confidence about the company he joined less than 18 months ago and the controversial topic of discussion: the deployment of 5G in Switzerland.
Salt (written as “Salt.” – with a period) was only created in 2015, through the purchase of Orange which began in 1998. It employs over 800 people and is headquartered in Renens, near Lausanne. Originally focusing on mobile telephony, Salt launched a fixed offer (including internet, television and telephone) last summer at prices defying all competition. It’s clear that Salt intends to be disruptive in the market, and Mr. Grieder told the audience with pride and some defiance that “Salt has the fastest internet on the planet.” He also mentioned that Salt is the first operator ever to work with Apple on a TV solution.
Grieder then jumped into a short history and explanation of 5G, the fifth generation of mobile technology which has experienced setbacks in Switzerland up to now. With a background in electrical engineering and technology management, there’s no hiding his enthusiasm for this new technology. He explained that the industry was operating under the same guidelines since 1999, and that the current 4G technology is reaching the end of its capacity to support traffic growth, particularly due to video. By 2023, he stated, we will need to move to 5G or we will hit a “glass ceiling.” The network will start to strain and then deteriorate in Switzerland, potentially leaving us behind our neighbors in terms of mobile services.
His case for 5G is appealing. He first explained that 5G is good for rural areas, which are particularly poorly served by networks. With 5G, there is no need to dig trenches and install cables, but simply one antenna which could serve a large, rural area. He then presented a case study with particular interest for football fans: real-time tracking of football games and players through augmented reality. A viewer could get close-ups, statistics and much more thanks to AI, enabled by the speed available with 5G.
However, he recognizes that segments of the Swiss population are vehemently against its deployment, citing health issues primarily. He stressed, however, that there is no evidence of 5G being dangerous for our health. Citing a study by The Federal Department of Environment, Transport, Energy and Communications, he said that 5G is more energy efficient and will not increase emissions, which are capped by federal law at 10 times lower than the WHO guidelines. Furthermore, there is nothing fundamentally different between 5G and its predecessors (4G, 3G, etc.), which have been around for 20 years. Finally, 90% of radiation exposure comes from our phones, not the antennas.
To anticipate any audience skepticism of his objectivity, he said that Salt stood to make more money by not deploying 5G since they could avoid investing in its infrastructure. However, he did mention that Salt has already invested CHF 100 million in the license fee for 5G, which they have yet been able to use.
The audience of nearly 50 people had many questions and the discussion was lively, which denoted to the controversial and topical nature of 5G.
Paige Holt, February 7, 2020