WELLINGTON, New Zealand-Hutchison has teamed with Telecom New Zealand to launch third-generation services in the Australian market and in New Zealand. New operating companies in both Australia and New Zealand will be formed to focus on 3G products and services, with Telecom New Zealand taking a stake in Hutchison’s Australian 3G operation.
The news comes just a week after Telecom New Zealand said its Australian subsidiary, AAPT, would not roll out a CDMA network in Australia as planned.
The new companies will have access to the global resources of the Hutchison 3G group for content, applications, technology, management expertise and branding. Hutchison has 3G licenses in the United Kingdom, Italy, Austria, Sweden and Australia. It also has a partnership with Japan’s NTT DoCoMo.
The alliance plans to introduce 3G services in Australia and New Zealand in late 2002 or early 2003. “Hutchison 3G is committed to an early launch of its networks and a first-to-market strategy for its products and services,” a joint statement said.
As part of the deal, Telecom New Zealand will invest $130.2 million for a 19.9-percent stake in Hutchison 3G Australia. Hutchison’s 3G funding will come from bank and capital markets.
Telecom New Zealand will form a dedicated 3G company, Telecom 3G, to conduct 3G business in New Zealand. Hutchison will acquire a 19.9-percent stake in Telecom 3G for $105.4 million excercisable 12 to 24 months after commercial launch of 3G services in New Zealand. Telecom 3G will have access to Hutchison’s global 3G brand, along with content, products and technologies.
In separate news, Telecom New Zealand completed a CDMA roaming agreement with Telstra Australia. Telecom New Zealand plans to launch its CDMA network in New Zealand by the middle of the year.
“Over 70 percent of the demand for Telecom’s roaming services is for travel to Australia,” said Lorraine Witten, general manager of Telecom New Zealand mobile networks. “Telstra’s network provides coverage to over 97 percent of the Australian population, so with this deal, Telecom’s customers will have the best trans-Tasman CDMA coverage.”
Telecom New Zealand has also signed CDMA roaming agreements with Canada’s Bell Mobility, U.S.-based Sprint PCS, and Hutchison for its Hong Kong and Australian networks.
