Seven things you didn't know about 3 & HTIL
May 11, 2005
The entrance of Hutchison Whampoa's subsidiaries, 3 and HTIL, to
the mobile communications industry has reinvigorated it during an
era in which most observers have been talking about consolidation,
not expansion. "Despite the often hostile media press," says Jake
Saunders, ABI Research's Director of Research, Europe, "Hutchison's
3 has been able to wade in and grab the consumer by the lapels.
Just a year ago, headlines were predicting a hasty and undignified
exit from 3G by 2006. That possibility is receding fast."
Here are seven little-known facts and forecasts about Hutchison (HWL):
1. HWL manages its mobile networks through a number of brands: 3, Orange, Hutch and others. Expect consolidation of those brands under Hutch (if 2G) and 3 (if 3G).
2. Expect a number of IPOs hosted by HWL in local markets. Italy is next, in mid-2005.
3. 3.5G technologies, such as HSPDA and HSUPA, will not only improve the end-user download experience but also cut the cost and number of 3G base stations needed by 2010.
4. Expect to see HWL take a keen interest in markets in the Middle East and Eastern Europe. Hutchison's Indian assets will become star performers within HTIL.
5. 3's ARPU is among the highest in its market. It will inevitably decline, but will remain above the market average.
6. The 3 brand is rapidly becoming an iconic brand similar in strength to Vodafone and Orange. In the UK, the operator has won a number of consumer and innovation awards.
7. 3 has achieved approximately 3-4% market-share and is projected to attain 13-18% by 2006 in many markets. Markets in which 3 is making inroads are: Hong Kong, the UK, Italy and Sweden. More challenging markets include Austria, Denmark, Ireland and Norway.
ABI Research's study, "Hutchison's 3 & HTIL" explores 3's & HTIL's organizational structure, network deployment, tariffs, value-added services and operational benchmarks, as well as handset features and pricing.
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