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Hutchison U.K. concedes to handset subsidies

LONDON-U.K. newcomer Hutchison 3G U.K. has conceded to handset subsidies, with prices of its handsets dropping by as much as $450 from its original prices announced in February, according to current details on its Web site. Handsets in February retailed as high as $731, with the greenfield third-generation operator originally choosing not to greatly subsidize the units.

However, current handset prices are as low as $195 for the Motorola A830, $312 for the NEC e606 and $351 for the NEC e808. The price drops likely mean uptake has not been as strong as the operator’s targets.

Those handset prices reflect an extension of an introductory offer for a 50-percent discount on the full prices of handsets for customers who register for one of the operator’s two “Kit and Caboodle” bundled pricing plans by April 30.

Under the two bundled pricing plans, users will get 1,000 minutes of voice calls, 100 video call minutes and 250 text messages for about $94 per month. For a $156 monthly fee, users get 2,000 voice minutes, 200 video call minutes and 500 text messages. Some content is free until June 30 under both bundled plans.

Hutchison, which is operating its service under the brand name 3, also is offering a pay-as-you-go scheme. A new offer on the site gives a 50-percent discount off the “full price” of an NEC e606 handset when customers register for the “3toGo” scheme before the end of April 2003. This means users pay $311 for a handset with no minimum-term contract.

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