[3GScottishUser]

After a short compeditive tender the Polish Telecomms Agency have selected a consortium backed by local telecoms operator Netia for their UMTS licence. Hutchison Whampoa applied but were beaten by the local competition.

Perhaps the Poles have been watching what Hutchison have been doing elsewhere?

[Ben]

I guess backing the local firm will have better implications for local jobs, returns etc etc

I'm amazed Hutch are still chasing licences - surely they've got plenty of overheads right now without starting brand new ventures. Still, I guess building up companies and then selling them off is what they do best.

[3g-g]

I read about this also, it seems that Hutch didn't really try, perhaps they don't see Poland as a market that could of given the return on the initial investment. I think this is reflected in the licences that were out to tender, the URTiP, who are the regulatory body for Telecomms in Poland had one UMTS and one GSM1800 licence to hand out, priced at PLN3.96 million for the GSM and PLN1.05 for the UMTS, Hutch didn't place any interest in the GSM licence. By the looks of it the main revenue will come from voice in the region and not rich multimedia content.

[3g-g]

Oh well, it looks like Hutch may be back in with a chance as can be seen in this article. (http://www.thestandard.com.hk/stdn/std/Business/GE12Ae05.html)

Now I had a look at the figures quoted on there, Hutch have invested 18.2 billion euros over 7 markets (including the UK, Hong Kong and Australia) and brought on board 8.1 million customers. The simple maths shows that for each subsciber worldwide Hutch has had to invest €2246.91 on each person!! That's £1536.45p! Where do you make the money back? By giving away handsets and £5 a month line rental for 9 months? I don't think so! Someone must know what they're doing, surely?


Hutchison Whampoa, the ports-to-telecoms conglomerate controlled by tycoon Li Ka-shing, may get a second shot at launching a new third-generation (3G) mobile telecom business in Poland after the winner of a public auction indicated it might not go ahead with the project.

Polish fixed-line operator Netia beat Hutchison and other operators in a tender for frequencies to provide mobile services using the UMTS (Universal Mobile Telecommunications System) 3G standard, the country's telecom regulator said Monday.

Netia also submitted a separate tender for 2G frequencies, with an eye to offering dual 2G and 3G services, but the tender was called off by the country's telecom regulator, Telecommunications and Postal Regulatory Office.

Netia's chief executive told Polish media Monday the group now needs to discuss with a partner, private equity investor Novator, whether to proceed with a service limited just to 3G. Analysts said it would cost more to provide nationwide 3G coverage without having access to 2G frequencies.

Witold Grabos, head of Poland's Telecommunications and Postal Regulatory Office, told a Polish TV station Monday that Hutchison would ``be the winner'' if Netia decides not to go ahead. Netia must make a decision within seven days, Polish media reported.

``[We] will continue to monitor developments in Poland,'' Hutchison spokeswoman Nora Yong said Wednesday. ``We have no comments on what [Netia] will or will not do or how that will affect what we do.'' Hutchison Whampoa has invested 18.2 billion euros (HK$182.29 billion) so far on 3G services in seven markets, including Britain, Italy and Hong Kong. Total subscribers stood at 8.1 million at the end of March.

Hutchison has been luring customers by offering heavily subsidized handsets to build market share before rivals enter the fray.

This strategy has proven costly: Hutchison's 3G businesses lost a combined HK$37.5 billion last year.