Hello Tanny,
I've prepared a listing of sources which discuss Hutchison’s 3 Network
in the UK and Italy. I've laid out what I've found below, including
the most relevant excerpts from these pages. However, for further
information, I recommend you read the entire articles. From the
information I assembled, 3UK and 3Italia have not been as successful
as anticipated and at present Hutchison is slashing prices in order to
gain more subscribers. 3Italy has announced that it has launched a new
3G price plan that offers 3G handsets in an attempt to boost customer
numbers. The most-recent subscriber figures available for “3UK” and
“3Italia” are from August 21, 2003 however I am including an estimate
made in September for subscribers in Italy.
----------------------------------------
An article in the Economist Newspaper sums it up like this:
“EVERYONE in the mobile-phone industry is watching 3, a new operator
owned by Hutchison Whampoa of Hong Kong, which is setting up
third-generation (3G) mobile-phone networks in several countries
around the world.”
(..)
“So far, things do not seem to be going well. Despite a huge
advertising campaign promoting the video capabilities of 3G handsets,
consumers seem unimpressed. Six months after launch, 3 has signed up
300,000 subscribers in Italy and 155,000 in Britain, and seems
unlikely to reach its target of 1m users in each country by the end of
the year. Subscribers complain of lost calls, bulky handsets and
inadequate battery life. Some are still carrying their 2G handsets
around with them as back-ups.”
“Things look particularly bad in Britain, where 3 has had to cut
prices already to drum up business.”
The Economist Newspaper: September 2003
http://www.economist.com/business/displayStory.cfm?story_id=2072901
“The subscriber numbers of Hutchison 3G's 3, the UK's first
third-generation high-speed mobile phone service, will be revealed on
21 August when parent Hutchison Whampoa announces its financial
report.” http://news.zdnet.co.uk/communications/3ggprs/0,39020339,39115620,00.htm
--------------------------
3 Subscriber Levels
--------------------------
Country Subscribers
--------------------------
Italy 300,000
UK 155,000
Australia 50,000
Sweden 9,000
Austria 6,000
--------------------------
“Hutchison Whampoa's six month results, published today, confirmed a
significant shortfall in subscribers for the Hong Kong-based
operator's 3G ventures in the UK and Italy. In line with expectations,
3 UK had only signed up 155,000 subscribers since its March launch,
which makes the original 1 million target for the end of the year look
unlikely. Italy, with 300,000 subscribers, has fared somewhat better,
though reaching the hoped-for 1 million mark by end 2003 will be a
tall order.”
(..)
“In the UK, network coverage now extends to over 70 percent of the
population with over 4,300 cell sites, including all major cities,
while in Italy coverage has reached 50 percent of the population with
over 3,200 cell sites and 70 of the 100 largest cities.”
(..)
“An analyst told 3GNewsroom.com, "Things are not looking that bad for
3UK, it is likely that 3 will get its 1 million subscribers by the end
of the year when it launches the pre-paid service, 3's sign-up rate
should grow rapidly."
(..)
“In Italy, network rollout progress is also satisfactory and the over
3,200 cell sites on air cover over 50% of the population and 70 of the
top 100 cities in the country.”
3GNewsroom.com
http://www.3gnewsroom.com/3g_news/aug_03/news_3665.shtml
----------------------------------------
Here are the subscriber figures for 3Italy and 3Uk broken down by
month.
---------------------------
Italy: Subscribers by month
Hutchison (3Italia)
---------------------------
March 2003 19,670
April 2003 43,000
May 2003 90,400
June 2003 164,200
July 2003 85,000
August 2003 316,300
---------------------------
3GNewsroom.com
http://www.3gnewsroom.com/html/stats/index.shtml#ita
---------------------------
UK: Subscribers by month
Hutchison (3UK)
---------------------------
March 2003 7,600
April 2003 27,300
May 2003 51,700
June 2003 98,600
July 2003 112,500
August 2003 141,300
---------------------------
3GNewsroom.com
http://www.3gnewsroom.com/html/stats/index.shtml#uk
----------------------------------------
Hutchisons 3G is confident growth will take off in the months up to
Christmas.
“Hutchison Whampoa [0013.HK] has said it plans to order three million
new third-generation (3G) mobile handsets from NEC and Motorola over
the next few months to help fuel an autumn attack on the UK and
Italian mobile phone markets.”
Hutchison released its financial results for the first six months of
2003 in August and “showed an operating loss of HKD3.9 billion (EUR450
million) from its operation of 3G networks in the UK, Italy, Austria,
Australia and Sweden, roughly in line with analysts' expectations.”
Hutchison said it had 520,000 subscribers across its European 3G
networks at the end of June, broken down in the following percentages:
Total Subscribers end of June – 520,000
Italy – 29.81% (300,000)
UK – 57.69% (155,000)
Australia - 9.62%
Sweden/Austria - 2.88%
Hutchison is well behind its target of one million subscribers in each
country by the end of the year but are optimistic.
“Hutchisons managing director Canning Fok went so far as to tell
reporters yesterday "Of course weare confident of reaching our
targets, otherwise why would I order three million new handsets". He
said that Hutchison was planning to slash tariffs in the UK to as low
as GBP15 a month, down from the current entry level contract of GBP25
a month, as well as launching pre-paid services in the fourth
quarter.”
“Although it is most unlikely that Hutchison will reach its subscriber
targets for the UK and Italy, the analyst community on the whole were
impressed with the midterm figures, with many saying that whilst
Hutchison undoubtedly will be forced to revise downwards its previous
estimates, the subscriber figures are fairly promising given the
relative maturity of the Italian and UK mobile markets where growth of
2G services has slowed considerably over the past year to 18 months.”
Connectel UK News
http://www.connectel.co.uk/news_features.asp?nid=7934&fid=1
----------------------------------------
“It is estimated that 3 Italia currently has around 450,000
subscribers.”
3G Newsroom: September 19, 2003
http://3gnewsroom.co.uk/3g_news/sep_03/news_3761.shtml
----------------------------------------
Hutchison Whampoa Unaudited Results for Six Months Ended 30 June 2003
Page 4 and 5 deal with 3G
http://202.66.146.82/listco/hk/hutchison/interim/2003/intpress.pdf
----------------------------------------
This is what Hutchison 3G responded to Standard & Poor's negative
rating.
“Standard & Poor's (S&P) ratings action reflects their negative
outlook on the prospects of Hutchison Whampoa Limited's ("HWL") 3G
businesses. This is disappointing to us as these businesses have only
recently launched and we do not believe S&P's negative view warranted
a ratings action.”
“Initial customer response to these campaigns is very strong and we
are confident that we are on track to achieve a solid operating
performance in our 3G businesses this year.”
3G UK
http://www.3g.co.uk/PR/June2003/5488.htm
----------------------------------------
Gossip - So: who will be first to launch the second 3G network in the
UK?
“Vodafone (and possibly) T-Mobile might both be operating a 3G network
by the end of the year. (..) What the gossipers are saying is that
Hutchison can't possibly sustain its operation that long, and that one
of the other two will buy the network from them.”
(..)
“Hutchison's network is hopelessly behind schedule. It was planning to
have a million subscribers by the end of 2003, but even if BWCS
estimates of 10,000 new subscribers a month are correct, it can't hope
to get anywhere near that.”
Connectel: August 2003
http://www.connectel.co.uk/news_features.asp?nid=7935&fid=2
----------------------------------------
A recent article dated September 17, by Nisha Gopalan of Dow Jones
Newswires:
“Hutchison has been getting customers for "3" by offering cheap calls,
something it can do because its high-capacity network is far from
overloaded. And analysts said they don't like the big phones needed
for 3G calls, which also have a short battery life.”
“Many doubt Hutchison can make the "3" network profitable by its
target date of 2005 or even notch up the 1 million customers each in
the U.K. and Italy it hopes to have by the end of the year.”
"Existing numbers are pretty good, but they're still a long way off
those targets.”
Yahoo Finance Singapore
http://216.239.39.104/search?q=cache:JpvulP5pVSIJ:sg.biz.yahoo.com/030917/15/3e8a4.html+Analyst+Forecast+hutchison+3G&hl=en&ie=UTF-8
----------------------------------------
Hutchison has slashed prices.
“Hutchison has slashed prices for voice calls, directly taking on the
likes of Vodafone Group Plc and Mm02 , to win over customers unwilling
to pay premiums for bulky handsets and a new technology with a
reputation for glitches.”
“In the UK, Hutchison is offering calling plans of 25 pounds
(US$39.50) a month for 500 voice minutes, or 35 pounds for 750
minutes, undercutting rival offerings by as much as 50 percent.”
(..)
“The UK and Italy numbers lag the 200,000 and 350,000 figures
forecast, respectively, by Nomura telecoms analyst Mark James.”
Reuters Business News: August 21, 2003
http://216.239.39.104/search?q=cache:uXLutThlySYJ:uk.biz.yahoo.com/030821/80/e6lnm.html+Analyst+Forecast+hutchison+3G&hl=en&ie=UTF-8
----------------------------------------
Hutchison's 3G subscription target is too optimistic.
“Hutchison hopes to attract 5.2 million users in the UK by 2005.”
3G Newsroom: December 2002
http://3gnewsroom.co.uk/3g_news/dec_02/news_2795.shtml
----------------------------------------
From Forbes:
“Morgan Stanley analyst Rob Hart said the recent rate of daily
customer additions would be more telling than total subscriber
numbers, with the market looking for 2,000 new customers per day in
Britain and 3,000 in Italy.”
Forbes: August 2003
http://www.forbes.com/home/newswire/2003/08/18/rtr1060629.html
----------------------------------------
Here is an article from 3G Newsroom published today.
3UK offers two new 3G price plans
October 1, 2003
“In a bid to reach its goal of signing up to 1 million customers by
the end of 2003, 3UK unveiled a new £15 a month price plan that brings
video mobile services within the reach of low-end contract users in
the UK.”
“3 also announced Football 500 and a new range of add-on content
bundles.”
Gareth Jones, 3 CEO said: "3 believes that anyone with a monthly
mobile contract would get more for their money by switching to 3.
•G Newsroom
http://3gnewsroom.co.uk/3g_news/oct_03/news_3798.shtml
----------------------------------------
3 Italy will be giving away videophones
“In a continued effort to meet its year-end subscriber targets and
prove gloomy analyst forecasts wrong, Hutchison 3 Italy has come up
with another industry first - a prepaid videophone. From today, users
will be able to sign up for the new offering, dubbed Tua, and a free
video-enabled handset, which will be upgraded at regular intervals at
no extra charge.”
3G Newsroom: September 25, 2003
http://3gnewsroom.co.uk/3g_news/sep_03/news_3777.shtml
Here is a graph of 3Italia subscribers.
http://3gnewsroom.co.uk/images/3g_news/2003/3Italia_chart.gif
----------------------------------------
3 Italy launches new tariff with free 3G handsets in order to increase
subscriber numbers.
“Italian 3G operator, 3 Italia, has announced that it has launched a
new 3G price plan that offers 3G handsets in an attempt to boost
customer numbers on its next generation mobile network.”
(..)
“The move has been seen by analysts as a push towards the Christmas
rush in order to reach the firm's one million customer mark by the end
of the year.”
3G Newsroom: September 19, 2003
http://3gnewsroom.co.uk/3g_news/sep_03/news_3761.shtml
----------------------------------------
3UK will fall short of 1 million customers
“It was reported on Bloomberg news that 3UK, a unit of Hong Kong's
Hutchison Whampoa, may not meet its full-year target of having 1
million customers for its 3G business in the UK.”
(..)
“In May, 3UK made deep 3G tariff cuts to attract more customers just 2
months after launching its service in late March, but due to poor
coverage, enormous handsets and negative press; the sign-up rate was
lower than expected.”
“3Italy, also a unit of Hutchison's 3G empire, gained 320,000
subscriber in Italy in the six months since rolling out its network.”
3G Newsroom: August 20, 2003
http://www.3gnewsroom.com/3g_news/aug_03/news_3663.shtml
----------------------------------------
Subscriber growth is expected by Christmas.
“The conglomerate, controlled by Hong Kong billionaire Li Ka-shing,
said it had lost around £300m on 3G in the first two months of this
year and expected losses to increase next year.”
“It has already set aside around £630m to cover the losses and today
reiterated its targets of attracting one million UK subscribers by the
end of the year.”
“Despite the losses Mr Li Ka-shing said he was "confident" the 3G
operation would "grow rapidly" in the run-up to Christmas.”
Guardian: August 21, 2003
http://media.guardian.co.uk/newmedia/story/0,7496,1027072,00.html
----------------------------------------
By (Filed: 21/08/2003)
The following article “3UK forced to rethink strategy” by Dominic
White is not optimistic.
“Mobile operator 3UK is today expected to admit that it has scrapped
an ambitious target to seduce 1m customers on to its videophone
service by the end of 2003 as it reveals it has gained less than a
fifth of that number to date.”
Telegraph: August 8, 2003
http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2003/08/21/cnthree21.xml
----------------------------------------
From a September BWA Newsletter:
'3' UK has been reported as struggling to meet its full-year target of
having one million customers for its 3G business in the UK.”
(..)
“Although '3' UK has made big efforts to attract more customers, such
us cutting its 3G tariffs only two months after launching its service
in late March, its sign-up rate is lower than expected.”
“'3' UK, though, continues to say it can reach one million customers
in its first year, i.e. through to March 2004.”
BWA Newsletter: September 2003
http://www.maravedis-bwa.com/05%20Sept%2003.doc
----------------------------------------
3 slashes prices:
“Commentators on the UK mobile market have long expected 3’s price
cuts as the upstart operator tries to claw customers away from its
more established rivals.”
BWCS: October 1, 2003
http://www.bwcs.com/marketing/index2.cfm?subcat=4&id=1&findid=2265#2265
----------------------------------------
Some analysts believe Hutchison may pull the plug on 3G if it
continues to fall short of expectations rather than let its credit
rating slip into non-investment grade.
“Dilip Parameswaran, director of credit research at Credit Agricole
Indosuez, said, “We believe Hutchison would be prepared to walk away
from 3G, given the great care it has taken to structure 3G financing
separately from the rest of the business.”
(..)
“The operator is said to be expecting its 3G business to be Ebitda
positive by 2005, which in the light of slow take-up and recent price
cuts is looking increasingly unlikely.”
3G Newsroom: June 10, 2003
http://www.3gnewsroom.com/3g_news/jun_03/news_3467.shtml
----------------------------------------
From a Times Online Analysis by Robert Cole
“Subscriber numbers have been added more quickly recently, but 3 still
occupies a demeaning market position in the UK. As for profits, there
aren’t any. Indeed the losses are ballooning.”
(..)
“But while it is difficult to see how 3 will chisel out a worthwhile
position, it will be easier to sell added-functionality 3G phones when
its rivals start marketing the services. When the whole mobile
industry begins singing from the 3G hymn-sheet, competition will
increase further, but momentum generated will give 3 invaluable help.”
(..)
“Do not discount his ability to lead 3, and Hutchison’s other
businesses, to sunlit uplands.”
Timess Online: August 22, 2003
http://www.timesonline.co.uk/article/0,,630-787925,00.html
----------------------------------------
Here are a few brief excerpts from aBusinessWeek Online article by
Mark L. Clifford in Hong Kong and Andy Reinhardt in Paris, with Kerry
Capell in London
“ Hutchison's service -- marketed as "3" in Italy, Britain, and
Australia since early this year -- hasn't taken off as quickly as Li
and Fok had hoped. Nonetheless, Fok is ordering 3 million new handsets
for the network to meet the surge in demand he's expecting. He insists
the company, after a renewed marketing blitz, will come close to
meeting earlier targets of signing up 1 million customers in both
Britain and Italy by yearend. And he vows that the 3G operations will
break even on an operating basis in two more years. "
(..)
“It is still not clear whether Hutchison's big investment in 3G will
turn out to be a Kryptonite bomb that weakens Superman's cash machine
or whether it's one of history's smartest bets. Li's track record,
though, would indicate that he has a pretty good chance of overcoming
the hurdles he faces.”
Yahoo News
http://story.news.yahoo.com/news?tmpl=story&u=/bw/20030917/bs_bw/b3850121mz033
----------------------------------------
According to Vincenzo Novari, head of H3G, “By the end of 2003, H3G
Italy is expected to make Euro 200M.”
3G: May 2003
http://www.3g.co.uk/PR/April2003/5306.htm
----------------------------------------
A speech given by Stephen Timms, MP Minister of State for Energy,
e-Commerce and Postal Services at the IEE 4th International Conference
discussing the future of 3g:
“The launch of 3G in the UK was low-key and it is no real surprise
that take-up has been seen by some commentators as slow. It is also
fair to say that the service still has problems to overcome. But that
was to be expected. It is a new technology.”
(..)
“But even today the 3G technology, now available on the market, can be
used with a laptop to allow remote access to your office e-mail, the
company intranet, your calendar from anywhere in the UK with 3G
coverage and at broadband speed. This has major implications for both
e-business applications and for homeworking.”
3G: July 2003
http://www.3g.co.uk/PR/July2003/5609.htm
----------------------------------------
3Italia has run out of 3G phones.
“The only company selling 3G mobile services in Italy says it has
temporarily run out of handsets, as Italians snap up the new
technology.”
“Italy's lone third-generation mobile group has run out of handsets
six months after launch, but the Hutchison Whampoa-controlled start-up
says it is on track for a first-year sales target of one million
phones.”
“Despite 3 Italia's push to accumulate clients, the company did not
plan to copy the kind of aggressive tariff cuts carried out by 3 UK.”
ZDNet UK: September 2003
http://news.zdnet.co.uk/communications/0,39020336,39116086,00.htm
----------------------------------------
In an interesting article in the International Herald Tribune, Eric
Sylvers, discusses Italy and cell phones. Italy has the third-highest
penetration rate in the world at 93 percent. Italy's “mobile mania” is
what drew Hutchison's 3G into this market.
International Herald Tribune
http://www.iht.com/articles/94596.html
----------------------------------------
According to Peter Judge of ZDNet UK, “3 is nothing more or less than
a massive heuristic experiment, on behalf of all the other operators,
to try and figure out who will buy 3G and why. The network has set
itself an increasingly ambitious-looking target of a million users by
the end of the year.”
ZDNet: Comment
http://comment.zdnet.co.uk/peterjudge/0,39020685,39115346,00.htm
----------------------------------------
“In an effort to increase its market share, Hutchison has cut charges
on its basic, voice-only service, competing directly with traditional
mobile operators such as Vodafone.”
BBC
http://news.bbc.co.uk/1/hi/business/3169565.stm
----------------------------------------
Despite Losses Hutchison Sticks with 3G Strategy
“Hutchison has stated it plans to have a million subscribers in both
countries before the end of the year. Currently, Hutchison has signed
up 155,000 3G customers in the U.K., and 300,000 in Italy.”
(..)
“To achieve its goals, Hutchison will have to boost its uptake rates
in the last four months of the year, which could include price cuts to
entice new users -- a move that rival wireless providers would be
eyeing closely.”
(..)
“The company said losses at its telecom division continued, in part,
because of the costs of setting up its 3G networks in the U.K. and
Italy.”
Internet News: August 22, 2003
http://www.internetnews.com/wireless/article.php/3067371
----------------------------------------
New price plans and Video for Voice offer spearhead 3's Christmas push
Three: 30 September 2003
http://www.three.co.uk/news/h3gnews/pressnewsview.omp?collcid=1019745742912&cid=1063815296009&index=1
----------------------------------------
This fee based report may be of your interest:
Italy - Wireless Communications
September 30, 2003
File size is 221K
Number of Pages 10
Price: US$30.00
http://www.budde.com.au/TOC/TOC2158.html
----------------------------------------
Search Criteria:
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Hutchison 3 subscribers Italy
Hutchison 3UK site:.UK
site:www.connectel.co.uk Hutchison
Hutchison 3G success Italy
Analyst Forecast Hutchison 3G
3UK subscribers
Hutchison "3 Italy" subscribers
Hutchison 3G UK
Hutchison 3G Italy
Hutchison 3G Italy losses
Hutchison 3G UK losses
I hope the above information helps you in your research.
Best Regards,
Bobbie7-ga |
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