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Hutchison seeks 3G handset help

December 18, 2003 - source: BWCS

UK 3G operator, 3, says it will offer six new handset models next year in a bid to boost flagging sales. The company, which is 80% owned by Hutchison Whampoa and 20% by NTT DoCoMo of Japan, said it is considering signing deals with two new handset suppliers, in addition to NEC and Motorola. So far, 3 has recorded around 210,000 customers in Britain, a long way short of the one million it targeted by the end of this year.

The operator, currently labeled with the tag “struggling” in most press articles, has declined to say which vendors it may be considering. 3’s marketing director, Graeme Oxby, seemed to offer a large clue when he said recently that “One or two other Asian vendors are making real progress.” Matsushita, which sells Panasonic phones, and Korean company Samsung are rumoured to be under consideration.

Oxby was speaking at a press conference designed to show off 3’s progress to date. The operator now has over 5,000 base stations and claims coverage of 73% of the UK population. However, the launch of 3G services in the UK and Italy, where Hutchison has also begun offering 3G services, have been dogged by technical problems, handset shortages and high prices. In addition the company has so far failed to launch its much-vaunted pre-pay service, due, it claimed, to a lack of suitable handsets.

Executives at 3 will be hoping for some more cheering news in the New Year. At least Li Ka-shing, the company’s billionaire owner continues to show faith in the services. Hutchison Whampoa, the Hong Kong based conglomerate which he owns, recently raised its investment targets in 3G around the world to euros 18 billion (US$22 billion).

 


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