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Is Wind Blowing Hutchison’s Way?

March 25, 2003 - source: BWCS

Hutchison Whampoa, the main shareholder in Italian 3G licensee H3G, has reportedly expressed an interest in acquiring a stake in the country’s third largest GSM operator, Wind. According to a Reuters report, Hong Kong-based Hutchison is looking to take nearly 25% of Wind in an effort to boost its presence in the Italian mobile market. Hutchison has denied the rumours.

H3G was one of two companies awarded UMTS licences in Italy that do not have their own GSM network, so it is being forced to buy GSM capacity from rival operators in order to launch a combined 2G/3G service. The company launched Italy’s first commercial 3G service at the start of this month and has said that it has signed up 50,000 customers, although a shortage of handsets has meant that some subscribers are still waiting for their phones.

BWCS reported last week that Wind’s part owner France Telecom is planning to sell its 26.6% stake in the Italian company to its partner, the utility company Enel, for €1.5 billion. It is thought that once it has 100% control, Enel will seek to offload Wind in order to concentrate on its core energy activities. Wind currently claims a 16% share of the Italian mobile market, with around nine million subscribers.

 


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This book discusses 3G services from the view of what is needed for the service to provide value to the user, what is the value proposition for the user, how will money be made out of delivering the service, and discussions on how revenue sharing propositions might work to benefit content providers and network operators. 3G operators should take note of this highly recommended book.

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