Who said free market? Swisscom is 51% government. A government-ish entity is IMHO the most efficient way to do this.

You can't have 2 road networks, highway systems, or railway networks. You can have, but it is pointless to, 2 water systems or 2 electric grids. Or fire brigades, or police. (criminal, not mall cops) Same applies for fibre in the ground. "Free market" doesn't work when you can't effectively compete.