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Hutchison plans agressive rollout
September 9, 2002
Hutchison 3G, the mobile operator likely to be the first to offer
3G services outside Asia, plans an aggressive pitch to consumers
that will threaten its rivals' margins, a local paper reported on
Monday.
The operator is considering simple, low-priced, flat-rate voice
call charges for its U.K. launch this year.
Hutchison's assault on the U.K. will be closely watched by rivals.
The launch will be a test-bed for Hutchison's global 3G ambitions.
People familiar with the group's plans say it is looking at significantly
undercutting existing prices on voice calls made within its areas
of 3G coverage, a strategy that could be mirrored across its international
operations.
Call charges are expected to be among the simplest in the mobile
industry. Unlike most other operators, which impose different tariffs
depending on when calls are made, Hutchison is understood to be
planning to woo consumers with a single rate, regardless of the
time of day.
Hutchison, which is planning similar launches in several countries,
including Italy, Australia, Sweden and Hong Kong, has been rolling
out an extensive 3G network to offer high-speed wireless Internet
access and mobile video-conferencing.
Hutchison is hoping to attract users with data services backed
by strong 3G coverage in urban areas. In greater London alone, Hutchison
will launch with about 1,500 base stations, enabling it to offer
almost total 3G coverage within the M25 orbital highway. Similar
extensive coverage is expected in other cities in the U.K. and Italy,
where a launch is also planned this year, the FT reported.
But, the mobile operator has yet to finalize how heavily it will
subsidize the cost of handsets to bring the price down to affordable
levels. Hutchison has signed deals with NEC and Motorola for delivery
of two million handsets at a cost of about $750 each.
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3G Motorola A920
