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Hutchison Outlines 3G Plans

date: July 31, 2002

Hutchison Whampoa, the parent company of Hutchison 3G in the UK, has confirmed that it will launch next generation mobile phone services in the UK and Italy in October of this year. However, the Hong Kong-based company admitted that users may suffer problems with dropped calls.

Speaking yesterday in a hastily arranged press conference, group MD Canning Fok reassured reporters that Hutchison 3G’s network will be the best in the areas where his own company provides the coverage. The briefing for journalists was convened after the UK Sunday Times reported on possible problems with 3G calls. Fok admitted that dropped calls were inevitable, but he insisted that every network has such problems.

According to Fok, the problems are likely to occur during the network “hand-over” as users travel from Hutchison’s 3G coverage area to zones where only GSM is available. Hutchison says it plans to cover 50% of the UK and Italian populations with their 3G networks at launch. The Hong Kong company plans to plough around US$16.7 billion into its European 3G networks by 2005.

In the UK, Hutchison plans to have some 3,500 3G base stations up and running by its October launch, with 2,200 in Italy. By the end of 2003 these figures should swell to 6,000 sites in each market. The company has set itself the modest target of adding between 5,000 and 10,000 new customers in each country during its first month of operation.

Fok also said he regarded the decision by spanish operator Telefónica Moviles to rein in its foreign ambitions in the 3G field as a plus for his company. "One less competitor is better for our business," he said.

 


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