Virgin Mobile talking with license holders in HK to become MVNO

date: January 28, 2002

Virgin Mobile (Asia) is in negotiations with two Hong Kong 3G mobile telephone license holders and hopes to finalize a partnership by the end of the year, the South China Morning Post reports (www.scmp.com).

The Asian mobile joint venture has emerged as a 3G Mobile Virtual Network Operator (MVNO) and will invite a Hong Kong partner to take at least a 30% stake in its local service, which may launch operations next year.

In accordance with the regulatory framework of open network access, the 3G licensees are required to open up at least 30 per cent of their capacity for use by non-affiliated MVNOs and/or content and service providers. This requirement promotes entry, ensures a competitive and vibrant 3G market and preserves a level playing field for all operators to compete with.

"We are in detailed discussions with two 3G operators in Hong Kong," said Ross Cormack, chief executive of Virgin Mobile (Asia).

Singapore Telecommunications holds 50% of the venture and may be using the vehicle as a way to get involved in Hong Kong's 3G market, the paper said.

The winners for Hong Kong's 3G licenses were Hutchison 3G HK Limited, SmarTone 3G Limited, Hong Kong CSL Limited and SUNDAY 3G (Hong Kong) Limited.

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