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Hutchison's HK 3G users to exceed 500,000

January 23, 2005

Hutchison Telecommunications International said it expects the number of subscribers to its 3G mobile phone service in Hong Kong to exceed 500,000 by the end of the year. The estimate more than doubles its current 220,000 subscriber base.

"The total number of mobile users in Hong Kong who subscribe to monthly plans is over 4.5 million and we expect an increasing number of them to switch to 3G from 2G," said Hutchison.

Hutchison launched its 3G service in Hong Kong almost exactly a year ago. It had the 3G market all to itself until December 2004 when SmarTone Telecommunications and CSL released their 3G offerings.

Telecommunications Hong Kong managing director, Agnes Nardi, said "With more operators now launching 3G services, we forecast the total 3G market will increase to at least 500,000 by the end of the year."

Recently the South China Morning Post reported that SmarTone and CSL have accused Hutchison of delaying an agreement that would allow video calls to be made across the operators' 3G networks. It could potentially affect the take-up of the 3G service in the region.

Meanwhile, the telecom regulator, the Office of the Telecommunications Authority (Ofta), is seeking public comment on a 10% reduction in annual licence fees for mobile phone operators.

Both 2G and 3G operators are charged HK$4,000 for their first 200 subscribers and HK$2,000 for each additional 100 subscribers.

"The number of mobile-phone subscribers - including activated prepaid SIM cards - has increased by 8.7 per cent from 6.53 million in December 2003 to 7.1 million in October 2004," Ofta said in a statement.

"With an increasing number of mobile [users], the licence administration cost per [subscriber] has decreased correspondingly."

The public consultation will end on January 28 and the reduction of fees is scheduled for May.

The cut will also apply to public non-exclusive telecommunications service licences issued for mobile virtual network services.

(£1 = HK$14.60)

 

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