OXFORD, United Kingdom-Having consistently stated that it would be the first to launch a third-generation (3G) service in the United Kingdom, Hutchison has now commented that the timing, always set for the end of 2002, might be in doubt depending on the progress made with its network deployment.
The company, which was due to complete a semi-commercial trial of 3G services with 1,000 users by the end of October, is reported to be requesting that these users return their existing handsets in return for updated terminals. While no information was provided on why the original handsets were recalled, NEC and other 3G handset manufacturers have made great publicity out of the fact that Hutchison has ordered millions of devices to coincide with the launch.
Separately, market research firm Thinking Box has provided some cheer to the gloomy 3G industry, and especially Hutchison, by claiming the expansion of 3G would be driven by operators that do not have an existing customer base and that would be aggressive, especially on price, in pursuit of market share. However, the firm warns operators against charging high tariffs as a way of getting a quick return on their investments.
“SMS and voice tariffs on 3G must remain the same, if not even lower,” said one of its analysts.