CSL Said Users Willing to Pay $400 for Next Generation Services

date: March 13, 2002

Users would be willing to pay between $400 and $500 a month for 3G phone services, telecom provider CSL has predicted, a unit of Pacific Century CyberWorks and one of four 3G licence holders - is to launch services next year despite moves by Hutchison Telecommunications to provide services later this year. Sunday and SmarTone will also launch their services next year.

CSL chief executive officer Hubert Ng, speaking after a 3G said handset development was lagging behind the telecommunications infrastructure. Demand for 3G services was also weak. ``We need more different types of 3G-compatible handsets than the market can offer at present,'' Ng said. ``In terms of content and applications, I do not see a need for 384 kilobytes, or higher, transmission speed by the end of year.''

Service charges have to be affordable to customers as well as profitable for the company. ``I guess subscribers would be willing to pay around $400 to $500 per month on average for 3G services.''

However CSL spokeswoman Vivian Shek said fees for 3G services had not been finalised.

According to financial report released earlier this week by CSL, its average revenue per user had dropped by more than 10 per cent, from around $440 in 2000 to $400 last year. ``The drop was moderate and reasonable, given that revenue from long distance calls and roaming charges in the mainland had decreased significantly,'' Ng said yesterday.

Despite suffering a dip in revenue from users, Ng said CSL planned to invest $10 billion on 3G developments over the licence's 15-year span. However, investment this year would not exceed $100 million.

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