BBC Homepage World Service Education
BBC Homepagelow graphics version | feedback | help
BBC News Online
 You are in: Business
Front Page 
World 
UK 
UK Politics 
Business 
Market Data 
Economy 
Companies 
E-Commerce 
Your Money 
Business Basics 
Sci/Tech 
Health 
Education 
Entertainment 
Talking Point 
In Depth 
AudioVideo 

Wednesday, 11 July, 2001, 13:16 GMT 14:16 UK
Hutchison 3G chooses Motorola
Hutchison's global crossing centre
Hutchison has already invested about $17.4bn in 3G
Hong Kong conglomerate Hutchison Whampoa has entered into a three-year agreement with Motorola to supply its next generation of mobile phones.

The $700m contract will help Motorola in the tough times facing the phone equipment industry as they struggle with the slowdown of capital spending.


Once there are mass volumes of devices in the market, 3G will become a reality

Canning Fok
Phone makers such as Motorola, Ericsson and Nokia have been vying to win contracts to supply 3G handsets.

Hutchison is rolling out third generation phone services in the UK, Italy, Sweden, Australia and Austria.

3G mobile phones promise to relay information 40 times faster than the current phones and will be able to display video, stream music and connect at high speeds to the internet.

Upbeat on 3G

Hutchison has remained upbeat about the success of third generation mobile technology, despite the whole industry suffering setbacks and suspicions that the vast amounts spent on licences may never be recouped.

Hutchison's 3G licences
UK
Austria
Australia
Sweden
Italy
Its investments in 3G are expected to total about $17.4 billion, according to U.S. investment house Merrill Lynch.

The firm said in late May that it was on schedule to roll out 3G in Europe in mid-2002, despite delays by other carriers.

"Once there are mass volumes of devices in the market, 3G will become a reality," said Hutchison managing director Canning Fok.

But some industry analysts are more sceptical, and do not expect the super-fast phones to emerge until 2004.

Crashing shares

Investors and analysts alike have been concerned by the amount of money invested in 3G despite the lack of proof that the phones will be popular or profitable.

This has caused a slump in the share price of nearly all telecoms companies.

Motorola will work with other infrastructure companies including Ericsson, Nokia and Lucent to ensure that its phones are compatible with all of Hutchison's future networks.

Delivery of the phones is expected in the third quarter of next year.

Motorola's share price has dropped 72% since last May, while Hutchison stock has plunged 46% from its peak at the height of the technology boom in March 2000.

Hutchison recently signed a three year deal for the rights to broadcast video of English Premier League goal clips on 3G phones.

Search BBC News Online

Advanced search options
Launch console
BBC RADIO NEWS
BBC ONE TV NEWS
WORLD NEWS SUMMARY
PROGRAMMES GUIDE
See also:

24 Apr 01 | Scotland
Phone giant to hand back 17m aid
19 Apr 01 | Business
Hutchison's 3G ambitions
15 Feb 01 | Business
Search for 3G revenues
03 Apr 01 | Business
Nokia seeks to hurry 3G launches
05 Jul 01 | Business
Is football going mobile?
Internet links:


The BBC is not responsible for the content of external internet sites

Links to more Business stories are at the foot of the page.


E-mail this story to a friend

Links to more Business stories