HONG KONG-Shell Hong Kong and Sunday Communications, the six-largest mobile operator in Hong Kong, announced they will shut down their joint mobile virtual network operator (MVNO) venture Shell Mobile, effective 26 September. The service began just a few months ago.
The company said the closure is a result of a saturated mobile market, and Shell Mobile’s lower-than-expected business performance. Sunday said it will make special offers to convert current Shell Mobile subscribers to Sunday.
The Hong Kong market is one of the most competitive in the world with six operators and about 6 million subscribers. In addition, newly licensed third-generation (3G) operators must offer MVNO capacity to comply with license conditions, which is how the Shell Mobile service came about. Three other MVNO services are set to begin in Hong Kong through the country’s other three 3G license holders.
