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CEO of Swedish Three expects rollout in 8 weeks

April 15, 2003

CEO of Hi3G Chris Bannister said in a press interview that Sweden would be able to show that 3G services can attract a big following very soon.

"I have seen the faces of the people trialling our 3G phones and it gives me a lot of comfort," he said. Within eight weeks, Mr Bannister expects to launch 3G services in Sweden. The market will be next in line after Austria, with Hutchison 3G Austria yesterday saying it would begin offering 3G services on May 5.

Person-to-person video, real-time information, and video clips of goals from soccer and ice-hockey matches are Mr Bannister's recipe for success. Professionals aged 25 to 40 are the target.

He expects Hi3G will be first to the market. Sweden has three other 3G providers: TeliaSonera, Tele2 and Vodafone, and the first two are not planning to launch 3G services until next year.

Hi3G is 60 per cent-owned by Hutchison Whampoa of Hong Kong and 40 per cent by Investor, the holding company of Sweden's Wallenberg family. Its service will be marketed under the name of "Three" and the first customers will almost certainly be drawn from the big cities. Hi3G has its own 3G network in Stockholm, Gothenburg and Malmo and is working with Vodafone to build a network outside of these areas.

All operators have found it hard to get building permission for 3G masts in some areas, delaying the roll-out process. Mr Bannister still cautiously promises that the user "experience will be acceptable".

With a budget of Dollars 2.3bn, Hi3G is less burdened by debt than some European counterparts, which have paid billions of euros for licences since Sweden auctioned off 3G.

Pricing has yet to be decided, but Mr Bannister shuns handset subsidies. "Pricing will be part of the mix, but I don't anticipate a price war," he says.

Hi3G also has a 3G licence in Denmark, but services there will not start until 2004 or even 2005. Mr Bannister also hopes to provide 3G in Finland and Norway.

It is one of the bidders for Telia Mobile in Finland, which the Swedish company has been forced to sell following its merger with Sonera of Finland. Telia Mobile has a 3G licence.

There's still a lot of scepticism about demand for 3G, which Mr Bannister blames partly on the traditional telecom operators themselves. "In three years no-one will say that 3G isn't the best technology because all the incumbents will be using it. Incumbents have to paint a bleak picture because they are not ready."

 


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