3G customers to number 50,000 within two weeks - News - Communications

To print: Select File and then Print from your browser's menu

--------------------------------------------------------------
This story was printed from ZDNet Australia.
--------------------------------------------------------------

3G customers to number 50,000 within two weeks

By James Pearce, ZDNet Australia
August 05, 2003
URL: http://www.zdnet.com.au/news/communications/soa/3G-customers-to-number-50-000-within-two-weeks/0,130061791,120276859,00.htm

Hutchison are set to have 50,000 3G customers within two weeks, the company revealed today.

Hutchison's 3G mobile service was launched almost four months ago, amidst criticism of overspending on 3G spectrum licences and roll-out costs.

According to its first half-year results for 2003, Hutchison had 43,650 customers on its new 3G network by August 4. On June 30 the telco had 18,435 customers on 3. The 3G take up rate is picking up for Hutchison, which added an average of 1,675 customers per week before June 30, and an average of 3,151 customers per week after June 30.

"As expected, start-up losses were incurred in the Company's 3G operation as it begins to build up a customer base and revenue stream," read the half-year report.

"In line with expectations, the mobile market for basic voice services remained subdued as the overall growth in penetration continued to slow. Market activities centred around aggressive handset subsidies and other acquisition incentives, even on low-end plans."

Hutchison have begun offering two mobile handsets for the price of one in a bid to encourage uptake of its service.

The 3G arm of the business recorded a AU$76.4 million EBITDA loss, which was partially offset by a corresponding EBITDA profit of AU$12.2 million by the companies 2G mobile service, Orange. The launch of 3 helped push the telco's operating revenue 16 percent higher than the first half of 2002, to AU$130.5 million, helped by an eight percent growth in Orange Mobile revenue. Orange Mobile increased its customer base by 5.8 percent to 278,861 customers.