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Handset shortage could dampen Hutchison's 3G Christmas sales

October 9, 2003

Goldman Sachs said Hutchison's 3G mobile phone service could be hit by a shortage of handsets that could affect the Christmas sales and failing to reach the intended target of 1 million subscribers.

Analysts who visited Huctchison's 3G operations in the UK and Italy said Christmas sales could be severely weakened unless the firm receives substantial handsets from manufacturers in the next few weeks.

Around 500,000 to 600,000 handsets of the Motorola A835 is expected late this month or in early November. NEC handsets such as the e606 account for 70 to 80 percent of Hutchison's 3G handsets sold, but it is unclear as when the new NEC's handsets would arrive.

The number of new subscribers to Hutchison's 3G service in Britain has slowed because of the shortage of handsets while the sales of handsets halted in Italy, as there were none available.

It was estimated that Hutchison would sign up 650,000 customers in Britain and 800,000 in Italy.

Goldman Sachs said Vodafone, mmO2 and Orange did not plan to launch their 3G service until mid-2004 because the market is not ready for the new technology. In additional, they would not compete with Hutchison's tariffs but rather on the service quality.

An analyst told 3GNewsroom.com "3 must offer more varieties of handsets" and provide an improve service if it is going to succeed with its new venture.

 


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last updated: January 12, 2004

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