Hutchison has announced a retail agreement with UK mobile phone store The Link.
The latest deal adds The Link to Hutchison’s rapidly growing distribution network, which will include Carphone Warehouse and phones 4u. While the UK launch is behind schedule, Hutchison is optimistic that 3G will launch by March in both the UK and Italy. By the end of the year it expects a million users in each country.
The launch of the company’s Hong Kong 3G service, however, has been postponed until after the Italian and UK services are up and running. It was originally due to launch in Hong Kong by the end of 2002, as in Italy and the UK. While Europe has been given priority, Hong Kong customers will now have to wait until Q2.
The delays so far have been attributed to technical difficulties, particularly concerning dual-mode handsets that use both 2G and 3G networks. With limited 3G coverage so far, the handsets are essential – but there are still problems with the handover when users move between 2G and 3G areas.
Despite the technical problems, Hutchison has a major incentive to launch soon. The UK has four other 3G license holders, all of which expect to launch 3G services before the end of this year. Hutchison, the only 3G operator without an existing mobile customer base, is relying partly on first mover advantage to gain customers.
However, first launch is not Hutchison’s only good point – and the delays and cancellations that plague its rivals are all working in its favor. It has a strong geographical breadth, excellent relationships with handset manufacturers – and its European managers include many of the people who built Orange into a key player.
Overall Hutchison remains in a strong position – at least compared to other companies attempting the unenviable task of entering a new market with a 3G network.
Related research: Datamonitor, Mobile Consumer Update 2002 – 2007 (DMTC0864 – available mid-January)
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