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Hutchison 3G may delay scheduled launch date

October 29, 2002

There is doubt as to whether Hutchison will launch the UK.'s first third-generation commercial mobile service by the end of this year, reported by an UK newspaper.

Hutchison Whampoa, which has a 65% stake in Hutchinson 3G in the UK, have said it may not reach its goal of having paying customers for its next generation services in the UK by year end.

"If things go right we will have paying customers, but, and this is a big but, we have hundreds of little tweaks that need to be put in place before the product is right," said Matt Peacock, spokesman for Hutchison.

Hutchison is spending around $16.7 billion on 3G technology in Europe and Hong Kong. Previously, the firm said it will have paying customers by end 2002 in UK and Italy. They still expect to have 100,000 3G handsets by the end of the year and aims to have around 1 million customers in the UK by end 2003.

In November the operator will launch three outlets in the UK allowing users to experience 3G content, services and handsets. There was some possibility of the outlets, situated in London (2 stores) and Birmingham, selling handsets when it opens, but it looks unlikely now.

Factors identified by Merrill Lynch for the success of the launch of 3G will be attractive handsets with many functionality. Even though 3G handsets will transmit at a faster data rate and have more functions, price will play an important part. They feel Hutchison needs to subsidize handsets to attract more customers.

 


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