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Hutchison Doing Well In Italy

April 30, 2003 - source: BWCS

The CEO of Hutchison Whampoa’s Italian 3G subsidiary has revealed that he expects the company to generate revenues of €200 million in Italy this year. Vincenzo Novari went on to tell reporters that he sees the company breaking even in two to three years time. H3G Italia, which is 88%-owned by Hong Kong-based Hutchison, launched its first commercial UMTS services in Italy last month and has so far attracted around 50,000 customers. The operator has previously said that it is hoping to have at least one million customers in Italy by the end of the year and is looking set to meet this target as it is already signing up around 1,000 to 1,500 new customers every day.

Hutchison hopes to attract a similar number of customers at its UK subsidiary, which also launched services last month. However, the first results have been disappointing, with just 10,000 customers signing up for the service, which is being offered under the name ‘3’, and subscribers have also complained of technical problems.

Yesterday it was reported in the local press that the UK division’s commercial director, Keith Bradley, has been axed from his post and is being transferred to one of Hutchison’s toy manufacturing companies in Hong Kong. Hutchison 3G UK recently failed to attract a £150 million loan from minority shareholder KPN of the Netherlands and the parent company has had to step in to cover the shortfall.

 


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This book discusses 3G services from the view of what is needed for the service to provide value to the user, what is the value proposition for the user, how will money be made out of delivering the service, and discussions on how revenue sharing propositions might work to benefit content providers and network operators. 3G operators should take note of this highly recommended book.

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