OXFORD, United Kingdom—As branding becomes a more important weapon in the struggle to win cell-phone customers, industry analysts are beginning to question how Hutchison 3G will be able to make any headway given that it has no infrastructure, customer base or brand recognition.
Despite this, the company said it is committed to a “soft launch” of services in the United Kingdom, Italy and Sweden this September—a timescale many of its major competitors have backed away from. Agreements made with soccer authorities in the United Kingdom and Italy that will allow Hutchison 3G to stream video clips of matches to its third-generation (3G) subscribers, are being lauded by the company as a marketing pitch that is sure to prompt soccer fans to sign up for the service. However, critics point to the e58 million (US$50.6 million) U.K. deal only lasting for two years, together with the issue that key moments of a match will not be available to users for some hours after a game ends.
Hutchison 3G’s Italian unit would appear to have negotiated a better deal with its nine-year agreement, including leading Italian football teams Roma and Lazio. The e55 million (US$48 million) contract will enable subscribers to see goals scored by the two teams with a one-minute delay. With 21 million football fans in Italy, Hutchison believes it will not only boost subscriptions, but also be the first business example in the world developed for 3G networks.
