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3 Australia going strong

August 12, 2003

Mobile phone users may be rushing its 3G network, but Hutchison Telecommunications (Australia) said it was not boosting its profit forecasts.

For the first half of 2003, Hutchison reported a $129.36 million loss compared with a $72.7 million loss in the previous corresponding period.

It incurred start-up losses in its 3G operation, but the 2G Orange branded business continued to deliver solid revenue growth.

Chief executive Kevin Russell said the launch of the 3G service '3 Australia' in April had been surprisingly successful - on Monday the company had 43,650 subscribers, and it expected the number would top 50,000 within three weeks.

The result was particularly strong given 3 Australia did not launch in Brisbane, Adelaide and Perth until July 1.

"Initial takeup has been surprisingly very strong but we've a long time to go before we're comfortable," Mr Russell said.

Hutchison has budgeted around $3 billion to build its 3G network in Australia by the end of 2006.

According to analysts, Hutchison still has a long way to go before recouping its $3 billion investment in building a 3G network in Australia.

Rival carriers Optus and Vodafone have said they would not release 3G until at least 2005, while debate continues about whether Telstra Corp's 1XRTT technology qualifies as 3G.

 


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