SmarTone offer 3G handset discounts

February 22, 2005

Hong Kong's SmarTone Telecommunications is to offer subsidies on its latest handsets for new 3G mobile phone subscribers. The Hong Kong Standard reported that SmarTone has signed up 2,000 users since launching the new service in December.

Analysts say handset subsidies will play an important role in attracting customers away from SmarTone's two other 3G rivals, Hutchison and CSL. One analyst said the company has signed up only 2,000 3G users because it failed to offer subsidies in the early stages. But the analyst continued to say that even with the new discounts, the package is still expensive.

SmarTone's new 3G Sanyo S130 handset has an estimated retail price of HK$5,600. Users subscribing to the HK$128 monthly contract for 12 months, will pay HK$4,800 for the handset while the handset would be free to users subscribing to the HK$598 monthly tariff for 18 months

"We haven't pushed our 3G services very hard so far, yet we have signed up 2,000 users, so the progress is satisfactory,'' said SmarTone chief executive Douglas Li.

Li explained that the Sanyo handset was custom made for SmarTone's services, unlike the two other models it launched initially in December, and would be able to offer better and faster services.

"We will be launching two other custom-designed models this year, including one made by Sharp,'' Li added.