Hutchison Changes Tack in Australia

date: May 27, 2002 - source: BWCS

Australian 3G licence Hutchison Telecom has decided to take control of building its own 3G base stations in Australia and alter the terms of its AU$830 million deal with Swedish supplier Ericsson. Having acquired a mobile network from Lucent Technology in January of this year, the Hong-Kong-based conglomerate has said it will take direct charge of construction of the base stations and sourcing transmission equipment.

While the Australian branch of Hutchison was keen to point out that Ericsson would remain the main supplier of network equipment, it stressed that certain applications and platforms would now be supplied by Hutchison Whampoa, Hutchison’s parent.

The operator does not believe that it will end up paying much less than its original forecast of AU$3 billion to establish a national 3G network in Australia. It plans to begin roll out of its 3G network next year and claims it will have covered most of the Australian state capitals by 2006.

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