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WirelessDevNet.com Press Release
HK SmarTone Telecom To Launch 3G Services In 2H 2004
HONG KONG (Dow Jones)--SmarTone Telecommunications Holdings (0315.HK), one of Hong Kong's six mobile phone operators, said Wednesday it will launch 3G operations in the city in the second half of the year.
The mobile operator said last year it would launch sometime this year but at that stage gave no specifics.
"SmarTone has had no delays or deferments to its plans to launch 3G," Chief Executive Douglas Li said Wednesday. "We will launch when dual-mode handsets are ready and more choices are available, which looks like it would happen in the second half of the year."
Hutchison Whampoa Ltd.'s (0013.HK), unit Hutchison Telecommunications (Hong Kong) Ltd., which is leading the global launch of W-CDMA - the 3G standard adopted in Hong Kong, said last month it would start handset sales sometime this month. The ports-to-telecom conglomerate first set itself a 3G launch target for early last year, postponed it to August and then to the end of last year, because of a shortage of handsets.
Li said that given the problem of short battery life and the limited availability of 3G roaming, "we couldn't provide a (good enough) quality for customers if we launch now."
He said that SmarTone had originally set aside HK$1.5 billion to roll out 3G operations, "but prices of 3G equipment have fallen, so we see ourselves spending less."
Li said SmarTone will spend up to HK$500 million a year on both its 3G and ongoing 2G operations. "But when we roll out 3G operations, we won't need to spend as much on 2G," he added.
SmarTone is one of the four Hong Kong mobile operators with a 3G license. The other three are Hutchison, Sunday Communications Ltd. (SDAY), and Hong Kong CSL Ltd., owned by Australia's Telstra Corp. (TLS).
Under the conditions of the license, the four are obliged to cover at least 50% of the Hong Kong population by the end of 2006
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