StarHub 3G trial focuses on content

December 7, 2004

Singapore's StarHub has started 3G mobile phone consumer trials and is set to rollout commercial service by the first half of 2005. Two hundred participants will test the service over a two month period.

The company is relying on content to differentiate its 3G services from those of its rivals SingTel and MobileOne.

"In the 3G trial, we focus on content. We believe content is one of the key drivers of 3G services," said Chan Kin Hung, head of StarHub's mobile services.

StarHub will use its partnership with Cable TV to provide trailers of TV programmes, and live streaming of news, music videos and video clips.

In additional, users will be able to watch sports clips, especially English Premiership football.

StarHub has committed $70 million this year to rolling out its 3G service and is expected to spend another $130 million over the next three or four years to expand its network infrastructure. (£1 = SG$3.18)

StarHub's chief executive officer Terry Clontz does not expect 3G services to boost revenue immediately until more affordable handsets are available.

"We really do believe it will take a while for the 3G handsets to be available in sufficient quantities and at the right price points, and to get a diffusion of those handsets in our customer base such that we begin to see demand pick up for 3G services. We will see a lot of that beginning next year, and begin to see some substantial critical mass buildup in 2006, 2007," said Clontz.

He said it could take as long as two and a half years before 50% of mobile phone users get a 3G handset.