Earlier this year, Swiss lawmakers passed legislation designed to oblige monopoly provider, Swisscom to unbundle what is known as the "local loop".

Currently, consumers in Switzerland can choose their telecoms provider, but must still pay a monthly fee to Swisscom for the use of the telephone cables connecting their house to the nearest sub-station.

The Federal Court's ruling, which stated that existing telecommunications law cannot be used to force Swisscom to allow competitors to access the local loop, also flew in the face of a decision by the Swiss Federal Communications Commission this year to force the provider to open the 'last mile' to competition.

The Swiss Parliament must now consider amending the country's existing telecoms laws, if the government intends to continue its push towards full liberalisation of the sector.