"The price erosion in Switzerland will continue and we will not be able to offset the whole of this revenue decline on the cost side," he said. "If we tried to do so we would manage our company in a very short-term way, endangering its competitive position in the future." On the positive side, revenues increased 3.2 per cent at Swisscom's Italian subsidiary Fastweb, from SFr2.7 billion in 2008 to SFr2.78 billion last year. A further leap in income from the broadband operator this year is expected to stabilise the group's financial situation.