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Hutchison Whampoa to delay 3G launch in HK until August

July 3, 2003

Hong Kong's Conglomerate Hutchison Whampoa said it would launch its WCDMA 3G mobile service in the city next month in early August.


If 3G don't sell, Hutchison will be hoping sex will help - a model holding the NEC e606 during a PR event.

Already two months behind schedule, the commercial service was due to start in June, but a shortage of 3G handsets and owing to overwhelming poor consumer comments in Italy, UK and Australia has meant the group delaying the launch date in Hong Kong.

Hutchison said more shipments of 3G handsets were needed for the overseas market and thus placing the importance of the overseas market and sacrificing shipments to the small territory. Hong Kong's mobile market is highly competitive and user ARPU is incredibly low hence placing Hong Kong's mobile business as non-crucial to its business plan.

The amount of investments put into the Hong Kong 3G project has also been lower because of expected low demand rate and poor outlook in the territory.

In UK and Italy, the service has been criticised for its software glitches, high handset prices and poor battery life.

The long unexpected delay in Hong Kong was also due to network installation problems with Nokia. A month ago, 3HK forced Nokia to rip out all of its 3G sites in Hong Kong due to 3GPP incompatible problems and invited NEC/Siemens to replace the equipment.

 


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