We shall not quit 3G says Hutchison

May 11, 2004

Hutchison Whampoa said it had no reasons to withdraw from its 3G business following market speculation that it would quit 3G by the end of 2006. The comments came after investment bank Nomura predicted Hutchison would abandon its 3G business in 2006.

Hutchison Whampoa managing director Canning Fok said the company is seeing very good results, reported the HK Standard. "I don't understand them. Why would we exit?" Fok said.

Fok added that people's perception of their 3G business is changing for the better and the "bad press is getting less and less".

He still believes that the business would break even before interest, taxes, depreciation and amortisation by year end 2005.

Fok said the recent Goldman Sachs estimation that the company was adding 20,000 subscribers a week in the UK was "very conservative". 3UK had 361,000 customers at the end of March with the average user spending around £45 a month. Hutchison will provide a detailed update on its 3G business at its annual general meeting on May 20.

Fok also dismissed suggestions that Japan's NTT DoCoMo would be selling its 20% stake in 3UK and added that the two sides have a "good relationship".

Following the deal to buy 3 million handsets from LG Electronics, Fok believes all of the handsets would be sold by the end of the year. "They selling like hot cakes," he added.