Hutchison failure to fix 3G roll-out date causes concern

Hutchison 3G, winner of the fourth Irish mobile phone licence, refused to give a date for the introduction of a consumer service…

Hutchison 3G, winner of the fourth Irish mobile phone licence, refused to give a date for the introduction of a consumer service yesterday, amid concern about further delays to its Irish service.

The firm, a subsidiary of struggling pan-European mobile operator "3", has not yet signed a roaming or equipment deal, both of which are necessary for the firm to initiate a service.

Hutchison confirmed to The Irish Times that despite signing a memorandum of understanding with Vodafone in January to negotiate on a national roaming deal, it has not yet signed a contract.

A national roaming deal would enable Hutchison to offer voice calls to its customers by piggybacking on Vodafone's existing mobile network. It is an essential element if the firm wants to offer a full mobile phone service.

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A Hutchison 3G spokesman said the firm was working on signing a contract on roaming and signalled it was now concentrating on rolling out a network.

But he refused to give a date for a full consumer launch of a third-generation mobile service in the Republic, despite previously signalling it would do so in late 2004.

Hutchison has not yet signed a deal with an equipment vendor to supply 3G technology to build its Irish network and will not be in a position to build its network until an equipment deal is struck.

The firm could be liable for multimillion euro fines if it fails to comply with roll-out requirements contained in its licence.

The Commission for Communications Regulation (ComReg) set a minimum commercial launch date at September 30th, 2003 in the terms of Hutchison's 3G licence. It recently said the firm had met this requirement by offering trial services, even though a 3G service is not available yet to most firms.

The next target for Hutchison to meet is the roll out a 3G network that can serve 53 per cent of Irish people by June 2005.

A ComReg spokesman said last night the regulator was in discussion with all mobile operators about introducing 3G services. But senior telecoms sources said press speculation about Hutchison's commitment to 3G technology had been noted. The firm categorically denied a weekend report claiming Hutchison was considering exiting the British market.

"Our risk period is over and we are now in the growth phase of our business," managing director Mr Canning Fok said in a statement released by Hutchison Whampoa, parent company of mobile firm "3".

Hutchison Whampoa is spending $22 billion (€18 billion) on 3G technology in Britain, Italy and Ireland, as well as a handful of other European states, Hong Kong and Australia.

But huge financial losses and launch delays have undermined confidence in 3G technology.