Press Release
Stockholm, February 7, 2001
Statement from Bj
rn Svedberg, Hi3G Chairman, concerning recent
figures in media on Hi3G's funding requirements
The forecasted funding requirement of 37 billion SEK in Hi3G's application to The Swedish National Post and Telecom Agency (PTS) assumes that the company finances the whole activity as described in the business plan on its own, and without any co-operations or financial leverage. The application displays Hi3G's financial ability to fulfil this. Hi3G has - in the application and during the whole process - clearly stated its ambition to co-operate with others, in order to rapidly, efficiently and in environmentally friendly manner establish a UMTS network with national coverage.
The application to PTS states:
"The final funding requirement should be lower than indicated above, as the possibilities for co-operation and technical development are expected to lead to cost reductions."
Hi3G has also been very clear in its ambitions to finance its operations with an economically viable combination of financial leverage and equity.
The agreement reached with Europolitan (23 January 2001) lowers the investment requirement. The agreement is fully in line with PTS' guidelines and with what has been communicated by Hi3G in the application and elsewhere.
Most recent reports in media refer to a Hutchison Whampoa Ltd analysts' meeting in HongKong where the company discussed its funding requirements in - among other ventures - Hi3G.
The sum 700 MUSD was mentioned as a reasonable estimate, with Hutchison Whampoa's 60 percent stake in Hi3G, with an approximated debt/equity ratio of 50/50 and co-operations on infrastructure taken into account.
From Hi3G's perspective the commitment on coverage and roll out is very clear. To fulfil it in an efficient and profitable way, Hi3G will co-operate on infrastructure in line with PTS' guidelines and establish a cost efficient combination of equity and financial leverage.
For further information please contact
Mr Pontus Ekman, mobile +46 70 624 20 46.