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Hutchison's leaked business plan targets 5.2m users by 2005

November 26, 2002

Hutchison 3G has targeted 5.2 million UK subscribers spending on average £50 a month by 2005, reports the FT. It would account for 10% of the market share in the UK, assuming there are 54 million mobile users by that date. The plan was drawn up two years ago and was the basis of securing a £3 billion loan from banks.

The aggressive UK business plan is similar to plans in other markets including Australia, Hong Kong and Italy.

Originally, Hutchison hoped to attract 400,000 users in the UK by 2001 and 1.5 million by end-2002. Recent problems in Europe have hurt its plans and now hopes to attract only 100,000 users in UK and Italy by the end of the year.

In the plans Hutchison aimed for 9.4 million customers in the UK by the end of the decade spending an average of £54 a month. Analysts believe the plans confirm that Hutchison hoped to attract heavy users but warned that reaching the target would be difficult. Currently, only 6% of mobile users spend more than £50 a month on their mobile, excluding business users. Users would need to spend significantly more on their mobiles to meet Hutchison's target.

"The figures do not look right," a company spokeswoman was quoted as saying, in response to the report. "I don't think we ever said any figures before."

Hutchison is still aiming to launch 3G services in the UK and Italy by the end of the year despite technical problems and a lack of handsets.

 


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