Views on 3G

The Media
The Analysts
The Experts

The Media

H3G's strengths among 3G operators

"3 is the leading 3G operator in the world today."
- Veckans Affärer, 6 October 2003

"[H3G has] more and also better-engineered services."
- Kurier, 7 May 2003

"If anyone can make 3G work, it ought to be 3."
- Independent Magazine, 1 February 2003

"Hutchison's progress is a source of fascination to the industry ...... it owns the largest tranche of the radio spectrum auctioned by the government ...... Hutchison 3G has no debt; capital of up to 3.2 billion Sterling Pounds is available from its banks ...... While any new standard owes its creation to input from a host of individuals, Candy has more right than most to be described as the 'Father of UMTS'."
- Financial Times, 29 January 2002

Application

"Just like in science fiction movies, you can now see who you are talking to in real time.... telephone provider can supply you with news, sports and weather, while you're on the go....watch the news like you would on television....including comedy sketches and more, imagine how great this will be if you're stuck waiting for a train or bus and want some quick entertainment ....games can be deleted and replaced by ones downloaded from the 3G service, so now you won't get bored playing the same game over and over ....enter the address of where you want to go. You are then shown a map of how to get there....people can email your phone by using the email address you receive when you sign up. In turn you can email people from your handset....connect to your laptop or computer as a modem so you can connect to the Internet.....send video messages...."
- Australian Net Guide, 1 October 2003

"With 3G, the network doesn't "thin out" in the same way that a GSM network does...... International videocalls are already running smoothly between 3G phones in different Hutchison territories......The location services delivered to all 3G handsets in the UK are stunning......One of the advantages of 3G over the current GSM mobile phone system is that the network always "knows" where you are."
- Stuff Magazine, March 2003

"3G to increase air safety"
- Financial Times, 14 March 2002

3G - the revolutionary technology

"....the 3G network can cope with considerably higher speeds than the current mobile telephone system....Not only does this make it possible to communicate by video, the technology also enables net surfing via mobile. The speed is nearly as high as broadband!....Not only do the video capabilities of 3G make video calls possible, they also mean you can 'watch TV' on your mobile."
- Lordag, 4 October 2003

"3G uses a different type of technology called 'pack switching', which allows it to transmit information faster....Mobile phones really do take on a new dimension with 3G. No longer are you limited to just voice and text messaging."
- Australian Net Guide, 1 October 2003

"[3G] is the future. It will not get better than this....I have done everything that is possible with the new technology....All without any major problems....I have tested video telephony around Stockholm and discovered that the coverage is actually quite good."
- Svenska Dagbladet Näringsliv, 28 July 2003

"[3G] really feels like the dawn of a new era of phone technology...... the video quality was about as good as you would expect and the tariff is reasonably good value......users were universally impressed by the quality of the clips."
- Financial Times, 21 March 2003

"The next generation (third-generation or 3G) phones will offer more than just high-speed connections to cope with information as well as chat."
- The Times of London, 9 April 2002

"3G wireless arrives; will allow services not possible before"
- Chicago Sun-Times, 1 April 2002

Headsets

"Hutchison's clamshell c606 phone impresses even after only a day's trial...... the video clips showing Premiership goals were impressive...... setting up an address and sending an email was the easiest I have come across on a phone...... it is sleek and well designed...... it is a minor miracle in its own right."
- The Guardian, 20 March 2003

"[HWL] may seem a peculiar pick for the role of the player that may beat the 3G odds...... [3G handsets] are light, have a big bright colour screen, and an easy-to-navigate interface ......I made three video-calls, and all three went through and provided good and stable video and voice quality."
- The Feature, 19 February 2003

"[With 3G handsets], want to view highlights of last night's soccer match? Piece of cake. Want a map showing how to get to the nearest cash machine? No problem... The images are pretty sharp for a phone... With headphones the sound comes close to stereo quality."
- Dow Jones, 5 February 2003

"Clips of goals on the pre-production phones showed that a small screen is not as much of a barrier to viewing as some skeptics has thought."
- The Daily Telegraph, 30 January 2003

Coverage

"H3G has set up over 1,000 base stations and according to telecom network engineers, this is enough to cover most of Hong Kong, and will lessen 3's reliance on the existing 2.5G network."
- The Sun, 15 July 2003

General

"There's definitely going to be 3G. Roll-outs are taking place at full speed. Operators are really planning their commercial launches."
- Financial Times, 1 October 2003

"Compared with 2G and 2.5G, 3G undoubtedly will provide a better platform for end users to explore on all sorts of creative usage."
- HK Economic Journal, 18 September 2003

"With 3G's capabilities of allowing speedy transmission of handset network data, downloading of image and audio files, and video-conferencing, it will definitely help companies and individuals to increase productivity."
- Ming Pao, 27 June 2003

"3G handsets appear to have more stable software than some well-known GSM equivalents......3G is here, it does work, so let's get behind it."
- Mobile News, 24 March 2003

"The market is too negative towards 3G......H3G UK is providing 3G services at 2G prices, thus its competitiveness is no doubt."
- Ming Pao, 12 March 2003

"Does it work? The simple answer is yes. And better than we dared to hope."
- Mobile Choice, 6 Mar - 2 April 2003

The Analysts

H3G's strengths among 3G operators"

3G will be the mainstream service in the future. HWL's launch ahead of competitors can help capture market share, which would help its overall business development."
- Wong Wing Fai, Head of Research, Shun Loong Securities, 5 January 2003

"We believe human and financial capital are vital ingredients for execution of the 3G bull case. On both counts, we believe "3" is well-positioned in Italy and the UK."
- Mike Warren & Manning Doherty, Goldman Sachs, 15 November 2002

"We have no doubt that Hutchison Whampoa has sufficient resources to fund its future 3G commitments, including H3G."
- Mark James & Chris Alliott, Nomura, 1 November 2002

"The meeting (with H3G's management) also increased our confidence in Hutchison's competitive position in the Italian wireless market, especially following the recent exit of Telefonica and Blu which means Italy is now a four-player market."
- Mike Warren, Sharmini Rajasingham, Manning Doherty & Chin-Keong Tan, Goldman Sachs, 18 October 2002

"The current debt fall-out in the sector should substantially weaken several competitors, boosting Hutchison's position within the market. Hutchison has ample access to cash for many years to come."
- Rob Hart & Tom Kim, Morgan Stanley, 4 July 2002

"[HWL's] Strategy of focusing on becoming a 'multimedia mobile company' not a phone operator was very prominent"
- Alistair Scott & David Cui, Merrill Lynch, 17 May 2002

"HWL is the one 3G start-up exception, controlled by a single shareholder (Mr. Li Ka-shing) with a sufficiently long term investment horizon, track record, and risk appetite to go the distance."
- CSFB, January 2002

"The absence of an existing 2G subscribers base enables Hutchison to enjoy greater marketing flexibility when recruiting 3G subscribers ...... Hutchison does have a track record of breaking into new markets given the success of Orange in the mid-90s."
- Deutsche Bank, September 2001

Handsets

"We believe this (Hutchison doubling the order of NEC 3G handsets to 2 million in October 2002) is the largest order of dual-mode 3G handsets that has been publicly disclosed to date and is a strong reaffirmation of Hutchison's long-term confidence in 3G."
- Mike Warren & Manning Doherty, Goldman Sachs, 15 November 2002

"This is a seriously exciting story ......I was favorably surprised by the voice quality which is equivalent to Dolby Surround compared to 2G ......That's a huge advantage, no one will ever want to go back to 2.5G"
- John Godfray, Head of conglomerates research, ABN Amro Asia, 16 May 2002

Coverage

"The high number of cell sites will no doubt ensure network and service quality ......Given the bandwidth and speed available, 3G phones can do several things at the same time, this is not available in 2.5G"
- Matthew Mo, JP Morgan, 17 May 2002

Users feedback

"From the 3G demos we saw in our meeting with management, featuring color screens, stereo sound and video quality equivalent to fixed-line broadband, with fast downloads, and user-friendly menus, we believe that consumer response is likely to be favorable."
- Mathew Mo, JP Morgan, 29 May 2002

"We saw and tested video connections on a number of trial 3G handsets and they worked, with good quality image ...... The progress of cell site construction is fast, network equipment is already working well, dual handsets are already available, and there should be an adequate number of handsets to choose from"
- Emilie Chau, Deutsche Bank, 20 May 2002

Application

"I believe that with 3G phones the "killer app" is the idea of video. I believe that it serves two vital areas - it improves communication between people and also provides real entertainment."
- Peter Nolan, Deloitte & Touche, November 2002

3G stores

"3G flagship stores were very impressive......their new age, high-tech appearance [are] much superior to the nearby own-brand outlets of the four incumbent operators......location [of the London stores] could not have been better......staff in the 3 stores [are] well-trained, polite, and very knowledgeable in demonstrating the key features of the 3 handsets."
- Mike Warren & Manning Doherty, Goldman Sachs, 22 May 2003

General

"Compared to 2G, 3G is much more efficient in frequency utilization; it gives much crisper voice quality and with its high speed capability, video calls and multi-media services become more attractive....we believe that several factors behind Orange's success are evident at 3 right now, including a willingness to go against conventional thinking and challenging the status quo and the desire to build up a strong brand."
– David Cui, Alistair Scott, Hillman Wong, Merrill Lynch, 26 November 2003

"We believe that [HWL] will get some or all of its key European 3G businesses right."
- Philip Tulk, HSBC, 17 September 2003

"If Hutchison were to introduce prepaid services in the UK, we have no doubt that the subscriber base could accelerate at a much faster pace."
- Cusson Leung, ING Financial Markets, 22 August 2003

"HWL indicated that in July its average APRU in the UK was GBP45 and that in Italy, Euro 78....Currently, HWL has approximately 505,000 3G subscribers, in line with our expectations. Growth momentum has been strong as 370,000 of the total subscribers were signed up over the past two months....HWL may collect above-plan usage and other potential revenue such as international calls and MMS.... Overall we view Hutchison's latest results positively, especially on 3G side, and maintain our BUY rating."
- Merrill Lynch, 21 August 2003

"3G's future prospect is still positive in the long-run."
- BNP Peregrine, 5 December 2002

The Experts

3G - the revolutionary technology

"This is a gorgeous, extraordinary technology...... it would help solidify Hong Kong's position as a logistic hub..... I believe 3G will be successful."
- Li Hua Ching, Assistant Professor, Hong Kong Polytechnic University, Electronic Engineering Faculty, 12 May 2003

"Images, which are available on 3G, will become a far more important part of what mobiles convey. Thanks to 3G technology, the mobile communications market isn't limited to human use, it includes anything that can move or be moved."
- Keiji Tachikawa, President & CEO, NTT DoCoMo, 2002

"3G is a wonderful technology. It is the highway system that will finally give us reliable access to the mobile frontier country of our new world."
- Jacob Christfort, vice president of product development, Mobile Products and Services Division, Oracle Corporation, USA, October 2002

"The advent of 2.5G and 3G networks and devices will usher in a new era for richer, more engaging multimedia technologies."
- Allison Webb, Frost & Sullivan, 12 March 2002

Business opportunities

"3G is here to stay because it's already a product on the market. Four companies have paid for the licenses. The issue now is how much of a market share they will each get."
- Ng Tung-sang, dean of engineering at the University of Hong Kong, 6 August 2003

"If we just imagine for a second that 3G was never invented, we'd all be sitting here discussing what is, I'm sure everyone would agree, an enormous business opportunity."
- Richard Kramer, managing director, Arete Research, a London-based research firm, 2002

"The potential that can be created from innovative business applications is staggering and could translate into trillions of dollars in savings that flow back to the industry."
- Jacob Christfort, vice president of product development, Mobile Products and Services Division, Oracle Corporation, USA, October 2002

"Half of the mobile phone software companies believe that 3G is important for their future development."
- Result of a survey done by Svenska Dagbladet Naringsliv, 15 April 2002

"3G will create more room for the development of e-commerce in Hong Kong. 3G will stimulate HK's economy and create employment opportunities."
- Anthony Wong, Director General of The Office of the Telecommunications Authority, HK, March 2002

"The arrival of 3G in the next three to five years was a prerequisite to the successful development of business"
- Result of a survey done by Economist Intelligence Unit, 21 March 2002

General

"There is no doubt that 3GSM is a highly efficient mobile transmission technology."
– Craig Ehrlich, GSMA Chairman, 6 January 2004

"3G will be terrific where mobile people are mobile."
- David Hagan, President, Boingo Wireless, Santa Monica, California, USA, 16 October 2003

"Half of consumers in Germany, France and England are convinced that 3G will succeed, and will offer benefits such as added mobility and cutting business costs, according to a survey of 3,000 individuals."
- Rudi Lamprecht, a member of Siemen's board, 12 October 2003

"There are three good reasons why the 3G networks are necessary: lower costs, higher speed and larger capacity."
- Rene Svendsen-Tune, Senior Vice President, Nokia, 8 April 2003

"Although 3G is a challenge in Europe, it will be a success worldwide."
- Jeff Belk, Senior Vice President, Qualcomm, 18 February 2003

"3G is attractive. It is a much advanced service in terms of quality and quantity as compared to 2G and 2.5G."
- Zhang Kan, CTO, Ericsson (China) Ltd, 3 December 2002

"2.5G will not be able to substitute 3G. After the launch of dual mode handsets (2G- and 3G-enabled), the problem in relation to network roaming will be solved."
- Anthony Wong, Director General of The Office of the Telecommunications Authority, HK, 2 December 2002

"Third-generation mobile phone networks across Europe are likely to fare better commercially than many of the gloomy projections suggest."
- Thinking Box, a London-based consultancy, October 2002

"It’s a challenging environment. But in the long term we fundamentally believe 3G will be a success. Hutchison is coming into an exciting market with some interesting ideas."
- Declan Lonergan, Director Wireless Research & Consulting, EMEA, The Yankee Group, 10 July 2002

"Within four years almost 500 million people will subscribe to 3G services and by 2010 more than a billion"
- Analysts, a research company, 2002

"I'm convinced that 3G will be an even greater success than 2G."
- Ericsson manager Mats Dahlin, 2002

Health

"The press has suggested that UMTS-like signals cause significant harmful effects to health or that these fields cause headache or other health related issues. However, it can be easily verified from our report that these conclusions are not governed by our results. Therefore, TNO-FEL disassociates from the latter suggested conclusions."
- Prof. Dr. A.P.M. Zwamborn, Scientist and Project Manager COFAM, TNO-FEL, 7 October 2003

"The fear for 3G-radiation is unnecessary. The antennas that are being rolled out does not cause any harmful radiation."
- Gert Anger, Radio wave expert at Swedish radiation protection authority, 8 April 2003

"There is no evidence that base stations are hazardous to people's health."
- National Board of Health and Welfare, Sweden, 11 February 2003

"The level of emissions ranged from several hundred to many thousands of times below the exposure guidelines set by the International Commission on Non-ionizing Radiation Protection"
- Douglas Alexander, e-commerce minister, UK, 2002

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