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.