CSL to spend less on 3G

November 26, 2003

Hong Kong 3G license holder CSL will spend less on its next generation mobile network than originally planned. The operator, owned by Australia's Telstra Corp, expected to invest HK$2 billion but will spend only around 10% to 20% of that sum.

The spend cut is due to lower equipment costs and its revised network coverage. Instead of supply service to the whole of Hong Kong, CSL will concentrate on covering high usage business areas.

CSL earlier spent HK$100 million on upgrading its GSM network to EDGE, an intermediate technology between 2G and 3G.

"Our strategy ensures a minimal capex investment is needed, and there won't be capex duplication in our EDGE and 3G operations," said Chief Executive Hubert Ng.

The operator has yet to set a launch date for 3G. Ng said it would depend on technology interoperability between 2G and 3G, content and application demand, as well as the availability of suitable handsets.

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