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Hutchison 3G denies job cuts

December 11, 2002

Hutchison 3G UK dismissed claims by a newspaper that it would cut 10% of its workforce in the UK. In fact, the operator is recruiting heavily for the launch of its 3G mobile phone network, it said.

The Daily Express reported that Hutchison would axe 250 jobs with many of them coming from Hutchison's product and marketing team.

A spokesman for Hutchison reiterated the company's plan to restructure part of the firm ahead of its 3G launch. Some redundancies were possible, he added, but dismissed the figures stated in the Daily Express.

Meanwhile, Dutch telecom group KPN may be forced to meet its financing obligations in Hutchison 3G UK, despite writing off its UK investment. KPN holds a 15% stake in Hutchison and according to Dutch newspaper Het Financieele Dagblad, KPN is bound to invest up to €235 million in Hutchison's networks.

Hutchison released its 3G mobile phone tariff yesterday price at £59.99 per month and £99.99 per month, but refused to say the details of the bundles. Three handsets would be available at the launch ranging from £399 to £449. Analysts say the price plans and handsets are too expensive, aiming at the heavy mobile users.

A Hutchison spokesman said the service is unlikely to launch in the UK by the end of the year.

 


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