TOKYO-Japanese vendor NEC Corp. has taken a 5-percent stake in two mobile-phone subsidiaries owned by Hutchison Whampoa Ltd. for a total $73 million. The stakes are in Hong Kong mobile operator Hutchison Telephone Company Ltd., Hong Kong’s largest mobile operator, and Hutchison 3G HK Holdings, which owns a third-generation license in Hong Kong.
The deal ensures that NEC will be a 3G equipment provider to Hutchison’s 3G businesses worldwide and signals the Japanese vendor’s confidence in Hutchison’s 3G plans. NEC is already supplying 3G infrastructure systems and more than 1 million 3G devices for Hutchison 3G operations and is providing 3G infrastructure to Japanese operator NTT DoCoMo Inc.
Hutchison 3G U.K. Ltd is today beginning a phased launch of its 3G network in the United Kingdom. NEC will supply about 1,000 3G handsets to Hutchison’s U.K. and Italian operations for “friendly customers.” The Hong Kong-based operator is slowly moving forward with its 3G launches in Europe and expects to have about 100,000 3G handsets -from NEC and Motorola Inc.-by year-end.
With the NEC transaction, Hutchison Whampoa’s interest in HTCL and H3G HK will change from 74.63 percent to about 71 percent, while NTT DoCoMo’s stake will decrease from 25.37 percent to about 24 percent for both companies.
“Through this investment, NEC intends to create a strong strategic partnership with the Hutchison Group by providing comprehensive support for Hutchison’s worldwide 3G businesses and to spur the creation of innovative mobile Internet services,” said Koji Nishigaki, president of NEC.
In related news, NTT DoCoMo wrote down $1 billion on its investment in Hutchison’s U.K. business on Wednesday.
