The network is available in Sydney and Melbourne, with Brisbane, Adelaide and Perth scheduled for third quarter availability. It allows real-time video phone calls, a feature only Hutchison offers.
At present, a slight latency is evident during calls, and a split-second difference between hearing a person's voice and seeing their lips move, but the company expects the service to improve over the course of the year.
Hutchison's network has a theoretical speed of 386 Kbps, compared with Telstra's 144 Kbps, but Russell said the data rate currently fluctuated between 50-250 Kbps, and this was likely to improve over the year.
The viability of Hutchison's 3G network has been questioned, with many analysts pointing out the company will need deep pockets to last until they see a return on investment. During the launch of its Mobile Loop service, Telstra spokesperson Ted Pretty pointed out the cost to roll out its system was well below Hutchison's, and intimated the incumbent telco giant expected that to be reflected in the price of services offered.
At the launch, Hutchison CEO Kevin Russell tackled these issues head on: "Our global parent, Hutchison Whampoa, is a multinational...in 1999 it was the most profitable company in the world," he said. "At December 2002, Hutchison Whampoa had cash and cash equivalents of AU$28 billion." This is the "deep pocket" that Russell said would be providing funds as they are needed, until the Australian unit achieves positive cash flow.
Prices galore
Hutchison also recognises Australia's price sensitive nature, and has set pricing for non-video services at
a competitive level instead of solely relying on video calls to penetrate the market.
Voice calls to national mobiles and landlines are charged at AU$0.15 per 30 seconds with a AU$0.25 flagfall.
Every SMS message will cost AU$0.15, while a picture and video message will cost AU$0.25 and AU$0.50, respectively. E-mail is free until 2004, after which a AU$0.10 per message fee will be imposed.
Other charges include:
- Videotalk - AU$0.50 per 30 seconds with a AU$0.25 flagfall within the country; AU$0.85 for 30 seconds with a AU$0.25 flagfall to other countries
- Content-based services - AU$0.50 (downloads); AU$1.50 (ringtones), which Hutchison has capped at
AU$25 per month subject to "fair use" policies.
The plans have a number of "upper limits" set by Hutchison, and currently come with an amount of free Videotalk included. There are no minimum usage requirements.
"We believe voice tariffs will come down over time, we may as well bring them down today," Russell said. "We're out to get customers".
Two handsets are available for use on the 3 network. The Motorola A830 will cost AU$480 or AU$20 per month for 24 months plus AU$100 connection fee. The NEC e606 will cost AU$768 or AU$32 per month for 24 months plus a AU$100 connection fee. Russell said the handsets have low subsidies of "less than a hundred dollars".
Meanwhile, Hutchison has signed a roaming agreement with Vodafone, which is expected to count for less than five percent of usage, he said.
Hutchison has 3G networks in Italy and the UK and will soon launch similar services in Austria, Denmark, Hong Kong, Israel, Ireland and Sweden.
