"We want to achieve good returns in Switzerland, and in addition we want growth. Because in Switzerland that is possible only to a limited degree, we must grow abroad," Rauh was quoted as saying in an interview with Swiss biweekly financial paper Finanz und Wirtschaft.

Swisscom is set for a partial privatisation of up to 49.9 per cent of its shares later this year.

"In terms of our core competencies, we have an excellent position in the mobile sector. For that reason we will seek to emphasise investments in countries without a good fixed-line network," he added.

He said this would include especially emerging markets.

Rauh also said that Swisscom would seek to consolidate its presence abroad with cooperations in companies in which it is able to hold a majority stake.

"There willbe more of this, because restrictive national laws are being abolished. We are experiencing that now in Malaysia," he said.

Swisscom is expected to increase its 30 per cent stake in Malaysian cellphone operator Mutiara Swisscom Bhd by the end of this year.

Swisscom is also a partner in Unisource, a joint venture which includes Dutch PTT Telecom, and Sweden's Telia.