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PCCW and Sunday in 3G deal

January 16, 2006

Hong Kong fixed line phone operator PCCW announced plans to launch 3G mobile phone service using Sunday Communications' existing network. The new company will be called PCCW Mobile.

PCCW does not currently operate any mobile phone services and does not hold a 3G license.

PCCW has a 79.35% stake in Sunday and plans to use it as a 2G operator while PCCW Mobile will run 3G services.

Last year, shareholders in Sunday, which holds a 3G license, rejected PCCW's bid to buy out the company.

One analyst said PCCW will effectively become a reseller of Sunday's 3G network capacity.

PCCW Mobile is currently offering a free six month trial 3G service with handsets supplied by Huawei Technologies. Users will have up to 10,000 minutes of free local airtime per month and unlimited high-speed transmission for 3G browsing. PCCW said it signed up more than 30,000 trial subscribers on the first day.

PCCW is hoping to be the largest 3G operator in terms of profitability after two to three years of operations.

 

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