Hutchison's H3G unveils Italian 3G plans

date: 23rd February 2001, source by: Reuters

Hong Kong conglomerate Hutchison Whampoa Ltd has unveiled plans to spend $5.26 billion over the next four years to develop its Italian third generation mobile phone network, the Financial Times reported on Friday.

Hutchison's venture, H3G, did not yet have a second generation mobile communications presence in Italy, and faced a tough battle to win over competitors already in the market, the paper said.

The customer and spending targets are the first unveiled by Hutchison in a major European market. The group has not yet publicly revealed plans for its British venture.

H3G is set for an initial public offering at any time next year, market conditions permitting, but the company insists it is not short of cash, given Hutchison's financial support.

Hong-Kong's Hutchison Whampoa own's 78.3 percent of the company's stake, with Italian Internet firm Tiscali and Cirtel International among the remaining shareholders.

But in harsh market conditions for telecoms, many may feel H3G has been optimistic in its targets.

The venture expects 1.5 million customers by the end of 2003, or at least a quarter of Italians owning third generation mobile phones, and hopes to break even by 2005.

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