Page 20 - Sphere No.11 (Apr 2004)

SPHERE
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“The content portfolio will continue to
be enriched,” Nardi confirms,“and all these
services will continue to be provided in
a very user-friendly manner.”
PIONEERING TECHNOLOGY
Mobile communications technology has
improved by leaps and bounds over the
past few years and HutchisonTelecom (HK)
has been at the forefront of introducing 1G
analogue, 2G and 2.5G digital services
in Hong Kong.
With the introduction of 3, Hutchison
is again spearheading the advancement of
mobile communications in the territory.
3G has a far greater bandwidth capacity
than 2G to handle data, allowing greater
volumes of information to be processed
more quickly than by second-generation
technologies.
The 3 HK network is comprised of over
1,200 3G radio base stations and is supple-
mented by the Orange GSM network.
“NEC is our supplier for both video
mobile phones and the 3G radio network,
and is also a shareholder in our 3 Hong
Kong operations,” says Nardi. “Our 3 net-
work provides full coverage in Hong Kong.
In the last two years, our network team has
done thousands of kilometres of testing.”
The global rollout of 3, starting in the UK
and Italy in March 2003, has smoothed the
way for 3 in Hong Kong.Technology devel-
opment, content deals, brand building and
handset procurement have all been done on
an international basis, making it a lot easier
than if 3 were starting from scratch.
Hutchison already enjoys 2G market
leadership in Hong Kong with Orange and
these customers will be a natural target to
migrate to 3 . But Nardi, who is in charge of
both, is comfortable with the numbers.
“3G is the future,” she says. “We are the
largest 2G operator in Hong Kong and have
obtained 30% of the market share. We are
looking to attract the other 70%. We have
something that the other operators do not
have. There are different market segments
with different requirements and we now
offer two very compelling propositions.
There will be a transition period and we
will facilitate the transition.”
Hong Kong consumers are well
informed. Citing a recent survey, Nardi says
70% of those questioned knew something
about 3G and 30% said they were willing to
try it.
“We have also seen very positive signs
among our first customers. About 95% of
our subscribers have tried out our video call
service and browse different content.This is
positive usage behaviour. Over time 3G will
do well.”
There are four 3G licences holders in
Hong Kong, but 3 is the first and, so far, the
only service that is up and running.
“We have the early-mover advantage,” says
Nardi. “We think our competitors are six
to nine months behind. Furthermore, by
being part of the Hutchison Group, which
is rolling out 3G services on a global scale,
we enjoy synergies and economies of scale
that our competitors will find hard
to match. We have the ability to source
video mobile phones at good prices as well
as draw on compelling international content
such as English Premier League and UEFA
football.”
PUTTING IT ALL TOGETHER
As a brand, 3 brings together the latest net-
work and video mobile communication
technology and the best content — and
delivers it to the public in an attractive and
affordable package.
By being first in Hong Kong, 3 has been
able to sign up a strong portfolio of content
providers, which may leave late entrants
struggling to compete.
In the build-up to the Hong Kong launch,
3 signed contracts with several leading con-
tent and service providers over and above an
already impressive list of international con-
tent providers that were signed up earlier by
3 ’s European and Australian operations.
3 HK has ensured it has enough video
mobile phones to meet demand. At launch,
3 HK became the first operator in the world
to deliver the stylish NEC 616 video mobile
phone.This was soon followed by the intro-
duction of the affordable NEC 313 for the
mass market and the Motorola A925 , aimed at
the business sector. In April, 3 HK launched
the compact Motorola A835 for the incredi-
ble price of only HK$498 (approximately
US$64) each. New models will follow, pro-
viding ever-greater choice for consumers.
Tariff plans are also highly competitive,
ranging from HK$123 to HK$533 (approxi-
mately US$16 to US$68) per month to cater
for different needs. Each plan provides a full
range of services including voice minutes,
video minutes, text messages, plus a bundle
of multimedia content downloads and wire-
less data.The deal provides subscribers with
easy entry to upgrade from their 2G or 2.5G
mobiles, comparing favourably with the
approximately HK$2,000 they can expect
to pay for a 2.5G camera phone and the
HK$200 tariff that the typical Hong Kong
consumer spends per month.
With 3 up and running, Hong Kong has
begun an exciting new journey down the
mobile information highway. A significant
number of early adopters have already
entered the realm and the take-up rate is
likely to accelerate into the 3G future.As the
advertisement on the fleet of “3 Cars” says,
it’s “full speed ahead”.
3 has joined forces with CK
Communications and Hutchison
Global Communications to pro-
vide video communications capabilities
between 3 video mobile phones and
Vfone devices in Hong Kong.
Vfone is a video phone that plugs
into a broadband connection and utilis-
es V2oIP technology.
The move represents a
key milestone in video
communications and is
the first time in the world
that a video phone has
been successfully con-
nected to a 3G video
mobile phone.
Plans are in place to
extend this pioneering
connection between 3 and
Vfone to other countries.
This will be particularly useful in coun-
tries where 3G networks do not yet
exist. There will be no IDD charges
involved when 3 users make video calls
to overseas Vfone users.
3 users can also conduct remote
surveillance through their Vfone, using
Vfone’s Auto-Answer feature.
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