THE INTERNATIONAL JOURNAL OF THE HUTCHISON WHAMPOA GROUP SPHERE 11
TTHEHE IINTELLIGENTNTELLIGENT AADVDVANTAGEANTAGE SPHERE CONTENTS Number 11 April 2004
2 14 UPDATES TELECOMS NEWSBITES 3 CHEERS Latest developments from the Hong Kong enters the new era Hutchison press box. of video mobile communications.
20 COVER STORY THE INTELLIGENT ADVANTAGE Harnessing the power of IT to stay ahead of the game. 9 COMMUNITY COMMUNAL BONDS HPH makes every effort to contribute to the well-being of the communities in which it operates. 28 HOSPITALITY CAPITAL COMFORT Beijing’s newest luxury hotel offers the best of both worlds for discerning travellers.
Cover: Illustration by Eamonn O'Boyle
PUBLISHED BY Hutchison Whampoa Limited, 22/F Hutchison House, 10 Harcourt Road, Central, Hong Kong.Website: hutchison- whampoa.com. In-house Editorial Team: Laura Cheung, Nora Yong, Jeremy Lau, Pamela Wan, Wendy Luk. Editor: Mark Caldwell – Great Pacific Marketing Services Ltd. Design and production: Fiona Wat,Alvin Fong,Tanny Shek, Kelly Cheung – , a division of the Asia City Publishing Group.Tel:2850 5500. Fax 2543 1220. Colour Separation and Printing by bigboXX.com Limited. No part of this magazine may be reproduced without the written permission of Hutchison Whampoa Limited.All rights reserved. Copyright © 2003 by Hutchison Whampoa Limited.Opinions expressed herein are those of the writers and do not necessarily reflect the opinion of Hutchison Whampoa Limited.All currency conversions are approximations. HUTCHISON UPDATES News
CORPORATE
HWL Annual Results Performance Turnover EBIT % change by Division (HK$ millions) % change (HK$ millions) 2003 (HK$) 2002 (HK$) PORTS 23,129 12 7,597 15 Turnover 145,609 million 111,129 million TELECOMS (2G) 15,471 16 1,195 23
Profit attributable TELECOMS (3G) to shareholders 14,378 million 14,362 million 2,023 N/A (11,939)* N/A
PROPERTY & HOTELS 11,224 (4) 3,121 21 $ Earnings per share 3.37 3.37 RETAIL & MANUFACTURING 63,086 60 2,305 124 $ To tal dividend $ 1.73 1.73 ENERGY & $ per share INFRASTRUCTURE 30,676 18 15,317 15 * Before amortisation and depreciation Hutchison Whampoa Limited recorded an audited profit Turnover for the year totalled HK$145,609 million, an increase of attributable to shareholders of HK$14,378 million in 2003. 31% over last year, mainly due to additional turnover contributed by Earnings per share amounted to HK$3.37 and the total dividend per the Kruidvat Group acquired in October 2002, higher commodity share was HK$1.73, both unchanged from the year before. prices for Husky Energy, and increased container throughput.The The results included a net profit on disposal of investments and telecoms businesses reported combined turnover of HK$17.5 billion. provisions of HK$8,893 million, primarily relating to profits on the 2G operations surpassed 10 million customers worldwide, an increase disposal of the Group’s European water businesses and its remaining of 64% while the 3G businesses contributed their first revenue and holdings in Vodafone Group and Deutsche Telekom of signed up more than one million customers. HK$1,683 million and HK$2,627 million respectively, a release of With the exception of the start-up 3G operations, all of the Group’s provisions of HK$7,810 million, partially offset by a full write-off of operating business divisions reported EBIT ahead of last year. the Group’s HK$3,111 million investment in Global Crossing and Excluding 3G start-up losses and exceptional profits, EBIT was 21% other charges of HK$116 million. Excluding exceptional profits and higher than last year. 3G start-up losses in both years, profit attributable to shareholders For full results see: www.hutchisonwhampoa.com/eng/ increased 25%. investor/annual/annual.htm Accolades Roll in Hutchison had a busy year on the capital Asiamoney awarded “Best Issuer”,“Best Bond”, and “Best markets in 2003 with six separate HWL the “Best Investment Grade”. corporate bond financing deals valued at Corporate Bond Hutchison was named winner in “The Banker US$10.137 billion.These attracted much Deal of the Year Company Awards - Hong Kong” (Dec. 2003 attention – and several awards – from the 2003” and “Best issue) and in the magazine’s “Deals of the Year” financial media. Overall Bond Deal awards (Feb. 2004 issue). Finance Asia named HWL “Borrower of the of the Year 2003”titles. Earlier, In its Review 200 survey of 200 Asian Year” and also awarded it “Best Asiamoney ranked Hutchison companies, the Far Eastern Economic Review Overall Bond Deal”,“Best Investment No.4 in the category “Overall Best rated HWL No.3 in the “Company Leaders” Grade Bond Deal”, and “Best Country Deal Managed Company (Hong Kong)”, No.3 category (Hong Kong) and No.4 for “Long- Award - Hong Kong”. “Best Operational Efficiency (Hong term Vision (Hong Kong)”. Hutchison picked up the “Asia-Pacific Kong)”, No.3 “Best Focus on Shareholder HWL’s Annual Report 2002 meanwhile won Borrower of the Year 2003”title, awarded by Value (Hong Kong)”, and No.2 “Best gold in MerComm’s “Galaxy 2003 Awards” IFR,along with the “Best Investment Grade Financial Management (Hong Kong). and Hutchison was also the recipient of “The Bond” title for HWL’s US$1.5 billion 10-year The Asset (Dec. issue) ranked HWL “The Hong Kong Council of Social Service Caring bond via Merrill Lynch. Best Credits in Asia - Weighted by Assets”, Company Award 2003/04.”
HUTCHISON WHAMPOA LIMITED Hutchison Whampoa Limited Hong Kong, Hutchison’s history dates back to the manufacturing; and energy and infrastructure. (HWL), one of the largest 1800s. Today, HWL is a multi-national Its flagship companies include Hutchison Port companies listed on the main board conglomerate with businesses spanning 39 Holdings, Hutchison Telecom, Hutchison of the Hong Kong Stock Exchange, countries. With over 170,000 employees Whampoa Properties, A.S. Watson, and Cheung is the holding company of the Hutchison worldwide, Hutchison operates and invests in five Kong Infrastructure. In 2003, HWL’s Whampoa Group of companies. As one of the core businesses: ports and related services; consolidated revenue was HK$145,609 million earliest big “hongs”, or trading companies, in telecommunications; property and hotels; retail and (US$18,668 million).
SPHERE 2 bites
PROPERTY & HOTELS
SONG BIRDS
Harbour Plaza Metropolis was proud to be selected as the official hotel to host “The 12 Girls Band”, when they visited in January to perform in Hong Kong.The talented Chinese musicians SNOW WONDER: Children were thrilled to performed at the Hong Kong have their first encounter with real snow at Coliseum and also starred at a the Whampoa Snowy X’mas Carnival, held at celebration party at the Wonderful Worlds of Whampoa in Hong Kong. Promenade Restaurant. The 60 ft.-long “Sleigh Ride” was the most popular feature.
PORTS Royal Arrival ECV Cruises to New Record Queen Mary 2, the world’s largest cruise ship, Ensenada Cruiseport Village (ECV) on Caribbean cruise lines, which operate docked at Cristobal Cruise Terminal on the Baja California Pacific coast of Mexico three- and four-day cruises from southern March 9, receiving a warm welcome from recorded its busiest year for cruise California. ECV also handled a wide range Panama Ports Company (PPC). passengers in 2003 with 442,767 of partial and full “homeport” operations Although the majestic vessel is too big to passengers, a 39% increase.The busiest from several leading cruise lines. transit the Panama Canal Locks, Cristobal month was October, with 56,172 Besides cruise ship activity, ECV finished is seen as an attractive cruise destination in passengers. Many of the guests were the year with an occupancy rate of 97% in its own right. passengers of Carnival and Royal its Marina facility. Cristobal Cruise Terminal received two more cruise vessels on the same day, Island Princess and Aida Aura. JICT Boosts Operations Noted Jakarta International Container Terminal (JICT) in February acquired six new Rubber- Ty r ed Gantry Cranes (RTGCs) and 13 terminal tractors. JICT now has a total of 50 Reflecting the growing demand for rail RTGCs and 116 terminal tractors covering transport, Port of Felixstowe (PFL) a yard area of 46ha. set a new milestone during Dec. 8-14, JICT has also finished moving 6,676 containers. A total the construction of an of 22 inbound and additional deepwater 21 outbound quay, adding two berths, trains per day and has implemented from PFL’s North a fully automated and South Rail container terminal terminals link management system. the port to 14 centres throughout the XICT Extends its Reach UK. PFL also handles two Xiamen International Container Port Zone.With the new equipment, XICT forest-products Ter minals (XICT) has purchased two has a total of eight quay cranes, all supported trains per day super post-Panamax quay cranes to further by an upgraded IT system, and can at its dedicated strengthen the terminal’s productivity and accommodate the latest generation 8,000- paper-handling enhance the competitiveness of the Haicang plus TEU container vessels. rail terminal.
SPHERE 3 HUTCHISON UPDATES Newsbites
ENERGY & INFRASTRUCTURE HEI in Thai Power Play Hongkong Electric International Ltd HEI is the largest foreign shareholder with Generating Holding Co Ltd.Petroleum (HEI) on Feb. 27 finalised shareholding a 25% stake in the HK$6.87 billion project. and gas supplier PTT Plc has a 15% share arrangements for a 1,400-megawatt gas-fired Other foreign investors are Chubu and the Saha Union Group holds 10%. power plant project which will be one of Electric and Toyota Tsusho with 15% and The plant in Ratchaburi Province will the largest base-load low-cost generators in 10% respectively. come into operation in 2008 and will sell Thailand, producing 6% of the country’s The largest local shareholder, with a 25% 100% of its output to the Electricity projected installed capacity. interest, is Ratchaburi Electricity Generating Authority of Thailand.
Hongkong Electric Results E-COMMERCE In a challenging year in which the SARS virus with HK$11,605 TOM Posts First Profit had a negative impact on the local economy, million in 2002, Hongkong Electric Holdings Ltd.reported earnings per share were The TOM Group in 2003 recorded its first audited consolidated net profit after tax of HK$2.84 compared full year of profitability with profit attributable HK$6,057 million (approximately US$776.5 with HK$3.10, and the to shareholders of HK$12.6 million million) in 2003 compared with HK$6,624 recommended total (approximately US$1.6 million), against a loss million the year before.This included profits dividend was HK$1.71, of HK$409.579 million the year before. from overseas activities of HK$437 million unchanged from the year before. EBITDA was HK$262.887 million compared compared with HK$335 million previously. For full results see: www.hec.com.hk/heh/ with HK$52.463 million in 2002. Operating Turnover was HK$11,250 million, compared financial/results03/contnts.htm profit was HK$92.349 million against a loss of HK$106.192 million. Total revenue increased 29% to HK$2,089 Husky Outperforms million with Internet operations accounting for 28% of turnover, up from 16% in 2002. Husky Energy Inc. reported another The Taiwan-based publishing operation record performance in 2003 contributed 37% of total turnover, down from with net earnings of C$1.32 billion 46%, and outdoor advertising contributed 14% (approximately US$995 million) or C$3.22 compared with 15% in 2002. per share (diluted), an increase of 64% SHIPSHAPE:The Sea Rose, Husky Energy’s Floating compared with C$804 million or C$1.88 Production, Storage and Offloading (FPSO) vessel, Online Arm Listed per share (diluted) in 2002.Turnover was officially named at a ceremony at the increased 20% to C$7,658 million. Samsung Heavy Industries shipyard in Busan, Taking advantage of the market opportunity During the year, Husky paid a special South Korea on Jan. 9, 2004. The Sea Rose will in China, the TOM Group in March staged dividend of C$1.00.The declared dividend produce oil from the White Rose oil field off a successful IPO for a new entity called was C$0.10 compared with C$0.09 the coast of Newfoundland and Labrador, TOM Online, raising net proceeds of in 2002. starting in 2005/06. approximately US$170 million. Net earnings included a net gain of C$190 The company was listed on the Nasdaq million on US-denominated debt Eight in a Row for CKI in the form of American Depository Shares translation and a positive adjustment of (ADS) on March 10 and on the Growth C$161 million related to tax rate changes. Cheung Kong Infrastructure Holdings Enterprise Market (GEM) in Hong Kong For full results see: www.huskyenergy.ca/ Ltd. achieved its eighth consecutive year of the following day. investors/ growth in 2003. Profit before tax was The debut of TOM Online marks a spinoff HK$4,185 million (approximately US$536.5 from TOM Group in a deal worth million), an increase of 8% over 2002. Profit approximately 25% of the enlarged issued Fuel from Corn after tax attributable to shareholders was capital of the company. Husky Energy is to construct a major HK$3,349 million, an increase of 1% from Pricing came in at HK$1.50 per share after ethanol facility adjacent to its Heavy Oil the previous year.Turnover, including that of retail books closed 96 times and institutional Upgrader at Lloydminster, Saskatchewan. the proportionate share of jointly controlled books almost 50 times oversubscribed. The new plant will be the largest in entities, was HK$3,454 million compared Based in Beijing,TOM Online is a leading western Canada and have an annual with HK$3,595 million (restated) in 2002. Internet company providing wireless value- production capacity of 130 million litres. Earnings per share were HK$1.49 and the added services, online advertising and It will cost between C$90-C$95 million total dividend was HK$0.715 per share, a 5% commercial enterprise solutions to the China (approximately US$70-73 million) to build increase from HK$0.68 per share in 2002. market. Proceeds of the listing will be used and is scheduled to be operational by the For full results see: www.cki.com.hk to expand services, boost R&D and fund end of 2005. /english/hongKong/home/ potential acquisitions and alliances.
SPHERE 4 RETAIL & MANUFACTURING The Wonderful World of Warner Bugs Bunny, Harry War ner Bros. Consumer Products a wide range of Potter, Batman, (WBCP) has appointed PMW Agency Ltd, merchandise based on Superman,Wonder a JV between Hutchison Harbour Ring War ner Bros. Consumer Woman, Scooby-Doo, (HHR) and Global Brands Group, as the Products brands for sale Tweety, Marvin the exclusive consumer products licensing agent in Authorised Licensed Martian and a host for the company in Mainland China, Hong Retailers outside of the US of their animated Kong and Macau.The agreement also and Canada. HHR Deputy friends will soon establishes HHR as an Authorised Licensed Chairman Dominic Lai said the agreement be appearing Retailer for WBCP,with exclusive rights to would create a win-win situation for both “live” in a store operate War ner Bros. Studio Stores and companies.“We believe we can help Warner near you, thanks War ner Bros. Studios Presents retail Brothers, using Hutchison’s knowledge and to a merchandise tie-in that will formats within the same markets.Additionally, network in the China market, while HHR feature these loveable characters in the Greater HHR has been awarded non-exclusive acts as a service provider and agent for the China region. licensing rights to manufacture and distribute internationally renowned brands,” Mr Lai said. Champions Challenge The Watsons Water Champions Challenge showcased some of the most exciting tennis seen in Asia for many years at Victoria Park Tennis Centre from Jan. 8-10, 2004. It was the fifth consecutive year Watsons Water has sponsored the tournament. Roger Federer won the Men’s Singles title and Venus Williams the Women’s Singles. Federer partnered with Martina Navratilova to win the Mixed Doubles. In conjunction with the Leisure and Cultural Services Department,Watsons Water also organised a Tennis Clinic where 100 ACE SERVICE:Venus Williams, winner of the ON THE BALL: Maria Sharapova, runner up in students received coaching from Federer, Maria Watsons Water Champions Challenge Women’s the Women’s Singles title, in action during the Sharapova, Max Mirnyi, Martin Verkerk and Singles title takes time out to do some Watsons Water Champions Challenge. Chanda Rubin. shopping at Fortress. Profits Rise for HHR Hutchison Harbour Ring (HHR) HK$153.3 million.Turnover increased 20.7% reported a 29.9% increase in profit to HK$2,192.3 million and basic earnings per attributable to shareholders totalling share rose 14.2% to 2.01 cents compared to HK$128.2 million (approximately US$16.4 1.76 cents in 2002.The final dividend was 1.7 million), compared with cents, up from 1.5 cents. HK$98.7 million in 2002. For full results see: www.hutchisonharbourring.com EBIT increased 19.9% to /finance_ann.htm Virtual Keyboard is a Winner i.Tech Dynamic has unveiled an astonishing device that will effectively give mobile phones or PDAs a full-sized keyboard that takes up very little space. SENSATIONAL: Miss Holland Sanne de Regt, The Virtual Keyboard, showcased at the 3GSM conference in Cannes on Feb. left, shares the latest health & beauty tips with 23-26, works by projecting the image of a standard size keyboard onto a flat a sales assistant at Watsons Your Personal surface.An infrared system senses the letters typed and communicates them Store. Sanne works at ASW-owned perfumery by wire or radio frequency to a PDA, mobile phone or laptop PC. Part of the chain ICI PARIS XL. She stopped over in Hong Hutchison Harbour Ring group, i.Tech Dynamic has a worldwide licence for manufacturing, Kong after taking part in the Miss World 2003 marketing and sales of the product, which is based on technology developed by VKB Inc. beauty pageant held in China in December.
SPHERE 5 HUTCHISON UPDATES Newsbites
TELECOMS (2G) Tie-up Creates Technology Powerhouse
Three leading companies have joined forces to in September 2003. ASIA provide a wide range of IT and Vanda also agreed to buy 100% of PowerCom Network Hong telecommunications services in Greater China and Asia. Kong (PowerCom), a provider of broadband services that can be On Jan. 28, 2004 Vanda Systems & Communications Holdings accessed through power sockets. PowerCom is a JV between Cheung (Vanda), the Hong Kong listed IT solutions company and an associate Kong Enterprises, an indirect wholly owned subsidiary of Cheung of HWL,agreed to purchase 100% of Hutchison Global Kong (Holdings) (CKH), and CLP Telecommunications, Communications Investments (HGC), which wholly owns a wholly owned subsidiary of CLP Holdings. HWL is an associate leading Hong Kong fixed line operator Hutchison Global of CKH. Communications Ltd (HGCL). HGC is an indirect wholly owned The transaction was completed on March 12 and the new entity has subsidiary of HWL, which became a major shareholder in Vanda been renamed Hutchison Global Communications Holdings.
Hutch Extends India Network Videophone Banking
Hutchison Telecom only 2.5% of the population currently CK Communications, INDIA HONG KONG has extended its Hutch using mobile phones. a subsidiary of Cheung cellular phone network in India to Rajasthan Hutch has also expanded into eastern Uttar Kong (Holdings) and Hutchison Global and eastern Uttar Pradesh – with the brand Pradesh with a total commitment of Communications (HGC), has pioneered now embracing 75% of the country’s Rs 440 crores to extend from the current a pilot scheme with HSBC for the first purchasing power. 65 key locations with 225 cell sites to 80 videophone banking service in Asia enabled In Rajasthan, Hutchison Essar,a JV locations with 400 cell sites. by the revolutionary Vfone. of Hutchison Telecom and Essar The Hutch network already embraces During a six-month pilot Group, has earmarked Rs 200 crores Mumbai, Delhi, Kolkata, Chennai, Gujarat, scheme, HSBC customers (approximately US$41 million) Andhra Pradesh, Karnataka and Haryana. It can utilise Vfone to to bring was recently voted “India’s Most Respected speak with HSBC’s world-class Telecom Company” in a Business World- customer service mobile IMRB Survey and “Best Mobile Service in representatives face to telephony, India” by TNS CellTrack, an annual survey face from their customer covering mobile users in 13 telecom circles homes or care and in India. offices. value-added MMS usage on the Hutch network has services across the meanwhile increased a phenomenal 20 desert state. times in a single year, from an average of The Rajasthan market has one of 3,000 per a day in February last year to the highest potentials in India, with 60,000 in March 2004.
Partner Rings up Record Ratings Rise
Partner NIS 0.46), which included a NIS 633.0 Moody’s Investors ISRAEL ISRAEL Communications million tax benefit. Service on Dec. 21, reported record revenues in 2003 of Operating profit for 2003 increased to 2003 upgraded the ratings of Partner NIS 4,467.7 million (approximately NIS 854.9 from NIS 533.4 million in 2002, Communications from stable to positive. US$1,020.3 million) compared with a 60.3% rise. Partner’s senior implied rating was upgraded NIS 4,054.6 million in 2002. Net income EBITDA increased to NIS 1,379.8 million, from Ba3 to Ba2; its issuer rating from B2 to before taxes was also a record at NIS 529.6 up 31.1% from NIS 1,052.2. Estimated B1; its US$175 million senior subordinated million compared to NIS 84.2 million the market share rose from 29% in 2002 to 31% notes from B2 to B1; and the ratings for year before. Net income was NIS 1,162.7 in 2003. senior bank credit facilities from Ba3 to Ba2. million (2002 – NIS 84.2 million), or For full results see: www.orange.co.il/ On Feb. 16, 2004 Maalot upgraded Partner’s NIS 6.34 per diluted ADS share (2002 – investor_site/financial_report.aspx corporate credit rating to A+.
SPHERE 126 TELECOMS (2G) HGC Shares Education Expertise Revenues Rise Since its launch Hutchison Australia HONG KONG / CHINA AUSTRALIA in March 2001, reported total operating a far-sighted education initiative by revenue of A$340.1 million (approximately Hutchison Global Communications US$248.2 million) in 2003, an increase of (HGC) has been used by over 70% of 50% on 2002. primary and secondary schools in Hong The company recorded a net loss after tax of Kong.Thanks to HGC, these schools have A$409.8 million compared to a loss of enjoyed high-speed broadband links that A$197.3 million in the prior year, an increase have opened the door to state-of-the-art that is principally attributed to the launch of 3. multi-media education applications. of the Internet and multi-media platforms The year was marked by a 61% increase in The School Fibre Broadband initiative caught for education. mobile revenue and strong customer growth the eye of the education sector in the HGC also met and reported to the PRC in both the 3 and the Orange brands. Mainland and a delegation from the PRC Ministry of Education on a joint project Launched in Sydney and Melbourne in April Ministry of Education and Center for with Mintel in Dec. 2003 on promoting 2003 and expanded to other licence areas in Educational Technology visited Hong multi-media education platforms to July, 3 contributed A$88.2 million to total Kong in February to see the benefits for Mainland schools. revenue with an EBITDA loss of A$306.1 themselves. Senior Hong Kong educators, Officials came out in support of conducting million, reflecting start-up losses. Customer along with officials from HGC and Mintel trials in Beijing and Shanghai with a view numbers grew to 86,758 by year-end and Inc,shared their experience on the use to further extending the concept in China. passed the 100,000 mark early in 2004. Average revenue per user was A$80, an industry high, with a churn rate of 1.1%. Ethernet Link-up The Orange business recorded its first full year positive EBITDA of A$21.6 million Hutchison Global Communications (HGC) and KT Corporation compared with an EBITDA loss of A$14.1 ASIA (KT) on March 2 established the world's first inter-Autonomous System million in 2002.The Orange mobile customer (AS) International Ethernet network. base grew 23% to 325,180, contributing The network, driven by Virtual Private LAN Service (VPLS) technology, offers multipoint- A$221.9 million to total revenue, an increase to-multipoint International Ethernet services and allows enterprises to connect their Hong of 15%. Kong and South Korean Ethernet LANs in a simple, flexible and cost-effective manner. For full results see: www.hutchison.com.au
TELECOMS (3G) Hot Handsets Good Timing Two new model video GPRS with 3 kicked off video GLOBAL mobile phones were transmission speeds GLOBAL coverage of the UEFA exclusively released into 3 of up to 53.6kbps. It Champions League with the first game operations around the globe in is also Global between Bayern München and Real February. Satellite Positioning Madrid on Feb. 24.The service allows The Motorola A925 is (AGPS) enabled, has customers of 3 to stay informed about a powerful dual mode bluetooth current action and results (3G/2.5G) device with connectivity, a built-in with near-live video industry-leading features that 180º rotatable VGA coverage of at least include video calling, MPEG4 camera and quad-band two games per video streaming, video UMTS/GSM game day.The messaging, MP3, fully capability. highlights of the functional PDA, and POP3 & The NEC 313 rest of the IMAP4 e-mail access. It supports video calling, matches are also supports up to 256MB MPEG4 video available and memory stick duo, has 65K streaming, video messaging, MP3, POP3 & fans who don’t colour touch screen, a Symbian IMAP4 e-mail access and Java application want to miss Operating System for installing downloads. It supports up to 128MB memory a single goal can third party software, Java stick duo and has a 65K colour screen and subscribe to the application downloads, and has a built-in 180º rotatable VGA camera. Flash service.
SPHERE 127 HUTCHISON UPDATES Newsbites
TELECOMS (3G) Lingua Franca Better Connections In March, 3 Australia launched its latest AUSTRALIA Telecom Italia Mobile content offerings to appeal to the Italian ITALY speaking community, including daily video news bulletins in (TIM) and 3 have Italian provided by AnsaLive, the news service of ANSAweb, extended the range of their commercial along with soccer video news from Serie A. association and revised the terms of their 3 also offers daily video news bulletins from Hong Kong in roaming, site sharing and interconnection Cantonese. agreements. Other exciting content includes Live Surfcam showing surfing The Feb. 11 agreement renews the preceding conditions at Australia’s most popular east coast surf beaches. voice roaming agreement until June 2006 and Subscribers can also get AFL and Rugby Union content, highlights of the English Premier adds a mechanism whereby 3 benefits from League, Eat and Drink information and What’s On city guides for Sydney, Melbourne, a traffic volume-based price reduction Brisbane, Perth and Adelaide. on roaming, while TIM enjoys a minimum In conjunction with the global launch of the Motorola A925, 3 in February released a new turnover commitment. GPRS roaming suite of video-based financial information services. Customers of 3 can get information on service pricing terms have also been set until ASX-listed stocks, including near live quotes, performance charts and a list of the Top 10 the end of 2006 and the two companies have movers.They can also track the Aussie dollar and the All Ordinaries against other global agreed to implement a co-siting plan that will currencies and indices.All stock data is provided by Reuters in association with the ASX. provide 3 with more sites than agreed under the original contract. The deal also includes provisions for sharing the two carriers’ mobile phone football Today On 3 Fans Bowled Over broadcast rights, covering 14 top clubs plus the Italian National Team. Marking the latest The gentle art of watching UK evolution in mobile UK cricket entered a new era entertainment, 3 UK in March launched in the UK in March Today on 3, the UK’s first live video mobile when, for the first Watching Big Brother news and entertainment channel. time, fans could watch The channel is updated throughout the day video highlights of ITALY 3 Italy in January and showcases the latest footage available England Tests and launched the first on 3, including clips from Sky Sports, One Day Mobile TV service on a 3G mobile MTV, Pete Tong, ITN, the Barclaycard Internationals network with a screening of the fourth Premiership and UEFA Champion’s on their 3 video episode of Big Brother. Henceforth, fans League. mobile phones. of the show can view all the vicissitudes Clips of up to eight minutes long can be The service was of Big Brother’s protagonists in real time Getty Images streamed using 3’s unique Quickplay option, launched ahead of England’s from virtually anywhere for a connection or downloaded, stored and replayed. first test against the West Indies in Jamaica. fee of just 90 euro cents for five minutes. 3GEO Leads the Way Pocket Art Applause In January, 3 added In February, subscribers EUROPE AUSTRIA a unique feature to the to 3 Austria were invited list of mobile communications services to enter into a specially created mobile SWEDEN To gether with its available to customers in Austria, Denmark, art space called Virtual Frame, containing communications UK and Sweden.The 3GEO mobile video clips, cartoons, music videos, high-tech agency BAS, 3 has won an award from navigational system tells animations, abstract software suites, the Swedish Federation of Trade for customers where they are and typographical fairytales, digital poems having the most attractive stores. leads them along the quickest and interactive path to their destination via works that can detailed maps. be activated on It also pinpoints the nearest a 3 video mobile restaurant, bank, or landmark phone.At launch, and can access up-to-the- a total of 40 minute information on artists and teams traffic and parking of artists had conditions, or speed created some 140 up the arrival of a roadside artworks for the towing service. new medium, Similar services will soon be available in 3’s establishing a new other worldwide markets. cultural platform.
SPHERE 8 COMMUNITY
COMMUNAL BONDS
HPH is a caring global citizen that makes every effort to contribute to the well-being of the communities in which it operates.
By Tim Metcalfe
ith a population of over 200 dream of a decent education has come true administrators, subsidises schoolbooks and million, more than half of the for local children thanks to the generous learning aids for the 50 neediest students W people in Indonesia are vul- efforts of Jakarta International Container and provides education for a total of 200 nerable to poverty. For many, feeding the Te r minal (JICT). children ranging in age from kindergarten family is a daily challenge, and providing a Acknowledging the vital role that edu- to junior high school. good education for their children seems cation plays in community development, “Without such financial support, it is like an unattainable dream. JICT supports the At-Tauhid school for doubtful the school could continue oper- Yet in the poor agricultural village needy children. The Port’s contribution ating,” says JICT’s HR & Admin Director, of Bekasi, about 20km from Jakarta, the helps pay the salaries of the teachers and Abdul Malik. “JICT felt it important to
SPHERE 129 COMMUNITY
provide something more than just employ- to mention but a few. tion, people are our greatest asset,” says ment for the community. By paying these HPH’s long-term contribution to com- HPH Managing Director John Meredith. salaries we enable the opportunity for all munities is especially significant through its But the concept extends beyond self- the children to be educated.” “HPH Dock Schools” projects. interest. “Education is our priority because JICT’s community efforts are but one From its founding in Hong Kong just we seek to ensure that tomorrow’s citizens example of the contributions made by over a decade ago with the adoption of the of our port regions are better equipped to Hutchison Port Holdings (HPH) compa- deal with the world they will inherit,” nies worldwide. Meredith explains. As a source of careers and livelihoods for more than 25,000 employees at its 32 con- HELPING ON THE HOME FRONT tainer ports across the globe, it is not sur- “Without HPH’s HPH launched its Dock School Programme prising that HPH is a popular employer financial support, it in Hong Kong in 1992, adopting the Tsuen and valuable asset to each respective local Wan Trade Association Primary School. The economy. In many port regions, HPH is is doubtful the school was a natural choice as it is close to the single-largest employer. Hongkong International Terminals (HIT), Keenly aware of its obligations as school could the city’s giant container port and the com- a “corporate citizen”, the world’s largest pany’s home base.Since then,HIT has award- private ports operator supports communi- continue operating” ed annual scholarships to promising students ty projects wherever it operates. Its contri- and has also organised numerous school visits butions are tailored to fit the needs and to the HIT terminal, along with recreational circumstances of local communities. events at its sports centre. Not only does HPH contribute as first Dock School, the programme has since When it adopted Hong Kong’s Chuen a group but the HPH staff themselves been extended to bring funding, scholar- Yuen College as its second Dock School in take the initiative to be responsible corpo- ships and technical support — especially in 1999, HIT focused on sharing IT expertise rate citizens. Employees have collectively the area of IT — to schools and universities with all 1,100 students. raised funds to fight the SARS crisis in countries as diverse as China, Myanmar, “As a pioneer in utilising information in Hong Kong, participated in running the UK and Panama. technology in the container port industry,we events for cancer charities in Europe, Of course, it is in HPH’s interests to help can share our expertise with the younger helped flood victims in Argentina and educate the next generation of potential generation,” explained Eric Ip, Managing assisted underprivileged people in Korea, port employees. “Like any other organisa- Director of HIT.
SPHERE 221210 Last year HIT sponsored a group of With interests in ten ports in Mainland software, the laboratory is a key education students to visit a poor community in China and two in South Korea, HPH’s aid for the 4,000 university students — and Hunan, China. The exchange helped community work is felt up and down the MITT hopes it will become an important broaden the students’ horizons, bringing a coastlines of Asia. institution in support of Myanmar’s grow- greater appreciation of the privileges they ing maritime industry.Says MITT’s General enjoy in Hong Kong. Manager, Roger Chai:“It’s part of our con- HIT has also sponsored college commu- tinuing efforts to foster the community’s nity programmes in which students “As a source of youth and nurture fresh talent for the ship- have cleaned up local communal areas or careers and ping and container industries.” visited homes for the elderly and homes In 2002, Shanghai Container Terminals for children with disabilities. “It is livelihoods, HPH is a (SCT) provided on-the-job training for a pleasure and privilege to be one of dozens of college graduates.The six-month HIT’s Dock Schools,” says college popular employer and internship programme taught the new grads principal Ruth Lee. practical work experience and modern In 2002, the volunteer HIT Community valuable asset to management techniques. Caring Group was established to each respective To mark its 10th anniversary in August co-ordinate the efforts of staff in reaching last year, SCT donated 500,000 yuan to the out to children, the elderly, infirm, ill local economy” Shanghai Red Cross. It was a timely and and disadvantaged. welcome gesture and the money was ear- More than just volunteering their time, marked for rebuilding schools in flood-dev- HIT staff have together contributed tens astated provinces of China and for upgrad- of thousands of dollars to help finance Another beneficiary of HPH’s Dock ing Red Cross clinics in Shanghai. charitable work. When Hong Kong was School programme is Myanmar Maritime Elsewhere in Mainland China, staff at struck by the SARS virus in 2003, HIT ral- University, in the capital Yangon, Xiamen International Container Terminals lied in response, contributing urgently where Myanmar International Terminals (XICT) have joined hands with the Red needed medical supplies to Princess Thilawa (MITT) recently donated Cross to provide annual blood donations for Margaret Hospital in neighbouring Kwai US$10,000 towards an English Language transfusions. XICT employees also actively Chung. Civic-minded staff raised half of Learning Laboratory, officially opened participate in activities to enrich their local the HK$200,000 needed, with HIT con- in August 2002. community. Every Mid-Autumn Festival, tributing the balance. Equipped with books, computers and for example, they distribute mooncakes and
SPHERE 122311 COMMUNITY
good cheer to the elderly and orphans. in Dubai. The port is also a major sponsor nary arts and architecture. FCP and its part- In South Korea, the staff of Hutchison of the country’s annual 36-hour Telethon ners also donate to local schools, churches, Korea Terminals (HKT) formed a volunteer fundraiser for special-needs children. sporting groups and individuals in need of group and donated their spare time to ren- Since it opened in 1997, Freeport medical help or disaster relief. ovate a welfare centre for the elderly in Container Port (FCP) has joined forces Ensenada International Terminal (EIT) Busan. In 2002, management and staff came with the Grand Bahama Port Authority and in Mexico strengthens its links with the to the rescue of a doomed fruit orchard community by providing practical work struck by flooding. experience to local university students, In Pakistan, Karachi International some of whom join the company as full- Container Terminal (KICT) has supported “We seek to time employees. Staff at Ensenada the SOS Children’s Village by organising a Cruiseport Village (ECV) meanwhile sup- painting competition for orphans. ensure that port several local orphanages with food, tomorrow’s citizens medical help and counselling. DEVELOPING A RICH LEGACY Panama Ports Company (PPC) is justifiably of our port regions PARTNERING WITH THE PEOPLE proud of its annual scholarship programme Every little bit helps, and Harwich for the brightest and most promising chil- are better International Port (HWH) was delighted dren of its 700-plus employees. Launched in to support Harwich School’s campaign to 1998, the 50 scholarships are divided among equipped to deal be officially designated a Language elementary and high school students — and with the world” College. Under the UK’s “Specialist are the stepping-stone to a lifetime career Schools Programme”, the status entitled with one of Panama’s biggest and most The Harwich School to government grants popular employers. totalling £100,000 (approximately Says PPC General Manager, Alejandro Group Companies to award more than 300 US$180,000) over nine years. To be eligi- Kouruklis: “Charity begins at home and it scholarships to promising youngsters. The ble, the school had to find its own sponsor- gladdens my heart that we provide help for initiative is contributing to studies that will ship to the value of £50,000 and HWH deserving children of our employees.” PPC ultimately prove most beneficial to Grand had no hesitation kick-starting the fund- also came to the rescue of the country’s Bahama. Areas of sponsored study have raising drive, pledging £2,000 a year for cash-strapped young footballers, paying for included aviation management, banking, three years. Donations from other sponsors their tickets to contest the World Youth Cup accounting, engineering, IT, nursing, culi- enabled The Harwich School to reach its
SPHERE 12 target — and its lucrative designation. each with Internet access. ALLEVIATING HARDSHIP Since then, the comprehensive school has A long-term supporter of community pro- When Santa Fe City in Argentina suffered transformed an old school block into state- jects for the disadvantaged, PFL also backs its worst flooding for 500 years in May of-the-art language laboratories, teaching The Woolverstone Project, a local charity that 2003, with the disaster leaving 25,000 classes in French, German, Spanish, Dutch has introduced thousands of disabled people homes under water, staff at Buenos Aires and Mandarin to some 1,150 pupils. of all ages to the joy of sailing. PFL sponsors Container Terminal (BACTSSA) responded Port of Felixstowe (PFL) has long-standing by contributing blankets, medicine, clothes, connections with Orwell High School. Many and food. employees were former students or The BACTSSA staff also sponsor “The currently have their own children studying “Staff have together Sun of Bernal” sports and social club, which there. It was therefore natural that represents a beacon of hope for children in PFL came out in support of the school’s bid contributed tens of desperate need, providing basic needs as to achieve “Technology College” status — well as sports facilities. a move that will see the school receive thousands of dollars to Following a train disaster in Tanzania in £650,000 government funding over four June 2002 that claimed 300 lives, staff at years.The money will enable the future col- help finance Tanzania International Container Terminal lege to concentrate on teaching technology, charitable work” Services (TICTS) donated much-needed IT, science and mathematics. Once it medical supplies.The port was also happy to has gained “Technology College” status, help a deserving school in need of desks for Orwell will develop closer links with the Port pupils, as well as providing a much-needed to give students a clearer picture of the career water well in a nearby district. opportunities available to them locally. one of the boats and helps pay for teams to The 250 TICTS T-shirts donated to The college will also provide resources compete in international championships for Nunge Camp for the disabled in Dar es and teaching assistance to other schools the disabled. Salaam may sound like a humble contribu- in Felixstowe. Across the Channel, staff at Europe tion, but they were very gratefully received. Back in 2001, PFL answered a call Container Terminals (ECT) each year enter A small gesture such as this goes a long from the local Trimley St. Martin Primary the world’s longest non-stop relay race, the way in helping to communicate HPH’s School to fund a new Information gruelling 530-km “Roparun” from simple mission — to assist the needy and Communication Technology room, Rotterdam to Paris, which raises funds for help make the world a better place equipped with 16 networked computers, cancer charities. for everybody.
SPHERE 13 TELECOMS 3G
3 CHEERS
Thanks to 3, Hong Kong has entered a brand new era of video mobile communications.
By Mark Caldwell
dam Chan* was the very first cus- generation) mobile communications era Empowered by the advanced 3G tomer in Hong Kong to get his in a city famous for the eagerness of its citi- (UMTS) technology, 3 delivers a range of A hands on a 3 video mobile phone. zens to be first to adopt new technology. applications that 2G simply cannot match. “I bought it so I could watch and listen to Mobile communications are already an While so-called 2.5G services have for some music,”he said as he emerged beaming from integral part of the Hong Kong lifestyle. time been offering users the ability to take the bustling 3Shop in Central. Second-generation (2G) penetration stands photographs and to send and receive them, Businessman Eric Wong was another early at over 100% with more mobile phones in 3 adds a visual dimension to mobile com- customer — in fact, he bought two video the territory than there are people. 3 Hong munications not seen in Hong Kong before. mobiles. “Now I can see my wife more,” Kong (3 HK) believes there will now be The most obvious difference between the he said. a steady migration by consumers to the new 3 service and those of incumbent oper- Wong spends long hours at the office or faster and smarter 3 video mobile phones ators is 3’s ability to simultaneously make travelling abroad, and the video calling capa- which deliver a far greater range of content and receive live video calls. bilities of his NEC 616s will keep him in and services. Added to that, 3 provides a selection of visual touch not only with his wife but with Since opening their doors in January streamed video content — ranging from his London-based daughter as well. “I am 2004 for pre-bookings, the distinctive news, financial updates and sport to music, also looking forward to trying out the other 3Shops (see sidebar, p.17) have been inundat- games and fashion — that allows the user functions, like being able to receive news ed by a public eager to catch the first wave. to truly enter the realm of moving pictures and access voice, e-mail and faxmail while Within days of the rollout in January, within the mobile environment. on the move,”Wong added. a growing band of early adopters could Subscribers gain entry into a space that Carol Ng and two of her friends also be spotted city-wide “surfing” content is altogether more useful, more diverse and joined the “early adopters”.They bought six offerings and trying out the new video more fun than the screen on their old 2G video mobiles between them and before call applications. device. It’s a space that entertains and long they were conducting video calls with informs, with the capacity to surprise, each other at a coffee shop in Central. DISTINCTLY DIFFERENT delight and entertain. It’s the difference Life in Hong Kong will never be The launch was accompanied by an adver- between looking at a picture on the wall and the same. tising blitz that saw billboards,TV and news- looking at the world through a window. Heralded by lion dancing and a carnival paper advertisements festooned with the As never before, 3 creates the sensation atmosphere, the 3 Service went live in Hong slogan:“The difference is 3”. of “being there” and “being with”. Eye-to- Kong on the sixth day of the Lunar New To succeed in this highly competitive eye video contact in real time is a delightful Year (January 27, 2004) — an auspicious marketplace, communicating to the public move up the communications ladder, allow- date in the Chinese calendar.The event sig- the difference between 3 and competing 2G ing Grandma to see nalled the beginning of a new 3G (third- services is indeed vital. her new grandson
(*Names have been changed to protect customers’ privacy.) TELECOMS
as well as hear him gurgle — or enabling a way of life for commuters travelling to and watch updated clips easily and conveniently. a buyer to view a property without actually from work.“At the end of the day, the same Pioneered by 3 HK, TodayOn3 features being in it. news is in the press, but video brings the sto- an innovative “rolling portal” that allows “The new era of video mobile communi- ries to life,” he said. users to easily see content offerings without cations has commenced,” says 3 HK the need to manually scroll up or down. If Managing Director Agnes Nardi. “This CLEVER INSIDE; EASY TO USE there’s something that catches their interest, is a revolution that people should try and With just a couple of clicks needed to navi- they can get the full story with a couple use as soon as possible. It is becoming the gate, it’s relatively simple to master the of clicks. The success of TodayOn3 in HK new style of communications.We are talking mechanics of the 3 video mobile phones. has led to its introduction in 3’s other mar- about a new lifestyle. It’s fun and useful and The various functions can be divided into kets worldwide. compelling. In future, people will wonder two general categories — “interactive com- For added convenience, DailyExpress how they lived without it.” munication” and “information & entertain- delivers a variety of information and enter- ment” (see sidebar, p.19). tainment services in video throughout the IT TAKES 3 TO TANGO Interactive communication covers per- day with scheduled and personalised alert As Metcalfe’s Law states: “The usefulness son-to-person video calls, voice calls, and services for selected information updates. of the network increases with the number video messaging. With the capacity to Customers can also personalise their pref- of people who use it.”Accordingly it is now switch seamlessly and automatically between erences through ExpressLink, which provides vital for 3 to sign up as many customers 3G and 2G networks, users can stay in touch quick access to the type of information and as possible to drive the revolution. wherever they are — and the 3 service offers content they use most frequently by having By offering a rich selection of applica- video and voice roaming capabilities in over it delivered directly to their video mobile tions and services at affordable prices, 170 countries and regions. phone screen. 3 appeals to a wide range of niche-interest Along with video links to Japan’s FOMA Another innovative offering called groups.With something extra for everybody, users, 3 provides international video calling HomeWatch provides a live video mobile ser- from home security to horse racing, more in the six other markets where the brand vice that allows customers to make visual and more subscribers are finding that there’s currently operates. Subscribers can make contact with their home or office via an something special that they want, motivating and receive video calls while in Austria, installed web camera. Similar technology is them to move to the next level. Australia, Denmark, Italy, Sweden and the used to provide live scenes of traffic condi- In a March report in which he described UK as well as access 3 Hong Kong’s 3Grid tions in Hong Kong. a week of testing the new service with fam- while in Austria, Denmark, Italy, Sweden With a total of some two dozen commu- ily and friends, Goldman Sachs analyst Mike and the UK. nications and infotainment channels already Warren expressed the opinion that users Apart from videocall connectivity on the 3 portal, the door has now been flung only need one or two unique features in 3G between 3 video mobile phones, users can wide open for exciting new content and to justify the migration from 2G. also make eye contact by connecting to services offerings to emerge. “Our favourite applications were video Vfones (see sidebar, p.18) or via webcalls to In March, 3 HK unveiled the 3 calling and downloading English football camera-equipped PCs. Developer Programme, designed to inspire video clips,” he said, adding “our first video In the area of information and entertain- and encourage the development of new calls with the family were an unforgettable ment, 3 offers a wide range 3G content and services. The experience and, importantly,the novelty fac- of easy-to-access content introductory forum attracted tor has not worn off.” through specially designed some 300 industry players and Warren noted that he could easily see portals and push-content fea- content/application developers how downloading news clips could become tures to enable customers to from the telecom sector. 3G
COOL ON THE OUTSIDE,HOT ON THE INSIDE
hen customers visit a 3 brand retail outlet, or 3Shop, they not only enter into an ultra-chic physical envi- W ronment but are also invited to enter a new space that is only a few centimetres in size.The space in question is the screen on a 3 video mobile handset. It provides a window to an exciting world of communication, information and entertainment not seen before in Hong Kong.
The flagship 3Shop opened in Central on January 24 to much fanfare, followed by more 3Shops, 3Corners and several 3Service Centres across the territory. Within two months of the service rollout, 3 had extended its retail network to over 100 sales out- lets, including all Orange shops as well as Fortress and CM Concept stores.
FREE WITH 3
o celebrate its rollout in Hong Kong, 3 offered various One hundred “3 incentives and attractive promotions to encourage peo- Cars” (taxis T ple to sign up. emblazoned with Unique to HK, a free limited-edition white gold diamond the 3 logo) were badge valued at over HK$1,000 (approximately US$128) was equipped with given to those who had pre-registered and then subscribed to 3 video mobile the HK$533 tariff plan or who purchased a pair of video mobile phones. At phones. This dia- 3.15pm dur- mond badge fits ing the pro- neatly onto a motion peri- video mobile od, three of phone and has these would a real sparkling ring and passengers diamond at its who answered hit the jackpot. Family and friends centre. accompanying the lucky winners were awarded a HK$500 A special pro- coupon each towards the purchase of a 3 video mobile phone motion from for themselves. March 4 - 6 saw Meanwhile, the first 1,000 customers who purchased a nine lucky taxi Motorola A925 video mobile phone enjoyed a 50% discount. passengers Customers who traded in their old 2G phones for the receive a free brand new NEC 313 or NEC 616 enjoyed a discount of video mobile up to HK$2,700. phone and enjoy Other attractive offers included free and additional text and free 3 Services multimedia content usage, free local video call minutes, dis- for three con- counts on international and roaming video and voice calls as well secutive months. as data usage.
SPHERE 1217 TELECOMS
“The content portfolio will continue to EYE CONTACT be enriched,”Nardi confirms,“and all these services will continue to be provided in a very user-friendly manner.” has joined forces with CK This will be particularly useful in coun- Communications and Hutchison tries where 3G networks do not yet PIONEERING TECHNOLOGY 3 Global Communications to pro- exist. There will be no IDD charges Mobile communications technology has vide video communications capabilities involved when 3 users make video calls improved by leaps and bounds over the between 3 video mobile phones and to overseas Vfone users. past few years and Hutchison Telecom (HK) Vfone devices in Hong Kong. 3 users can also conduct remote has been at the forefront of introducing 1G Vfone is a video phone that plugs surveillance through their Vfone, using analogue, 2G and 2.5G digital services into a broadband connection and utilis- Vfone’s Auto-Answer feature. es V2oIP technology. in Hong Kong. The move represents a With the introduction of 3, Hutchison key milestone in video is again spearheading the advancement of communications and is mobile communications in the territory. the first time in the world 3G has a far greater bandwidth capacity that a video phone has than 2G to handle data, allowing greater been successfully con- volumes of information to be processed nected to a 3G video more quickly than by second-generation mobile phone. technologies. Plans are in place to The 3 HK network is comprised of over extend this pioneering 1,200 3G radio base stations and is supple- connection between 3 and mented by the Orange GSM network. Vfone to other countries. “NEC is our supplier for both video mobile phones and the 3G radio network, and is also a shareholder in our 3 Hong Kong operations,” says Nardi. “Our 3 net- work provides full coverage in Hong Kong. positive usage behaviour. Over time 3G will 3 HK has ensured it has enough video In the last two years, our network team has do well.” mobile phones to meet demand. At launch, done thousands of kilometres of testing.” There are four 3G licences holders in 3 HK became the first operator in the world The global rollout of 3, starting in the UK Hong Kong, but 3 is the first and, so far, the to deliver the stylish NEC 616 video mobile and Italy in March 2003, has smoothed the only service that is up and running. phone.This was soon followed by the intro- way for 3 in Hong Kong.Technology devel- “We have the early-mover advantage,”says duction of the affordable NEC 313 for the opment, content deals, brand building and Nardi. “We think our competitors are six mass market and the Motorola A925, aimed at handset procurement have all been done on to nine months behind. Furthermore, by the business sector. In April, 3 HK launched an international basis, making it a lot easier being part of the Hutchison Group, which the compact Motorola A835 for the incredi- than if 3 were starting from scratch. is rolling out 3G services on a global scale, ble price of only HK$498 (approximately Hutchison already enjoys 2G market we enjoy synergies and economies of scale US$64) each. New models will follow, pro- leadership in Hong Kong with Orange and that our competitors will find hard viding ever-greater choice for consumers. these customers will be a natural target to to match. We have the ability to source Tar iff plans are also highly competitive, migrate to 3. But Nardi, who is in charge of video mobile phones at good prices as well ranging from HK$123 to HK$533 (approxi- both, is comfortable with the numbers. as draw on compelling international content mately US$16 to US$68) per month to cater “3G is the future,” she says. “We are the such as English Premier League and UEFA for different needs. Each plan provides a full largest 2G operator in Hong Kong and have football.” range of services including voice minutes, obtained 30% of the market share. We are video minutes, text messages, plus a bundle looking to attract the other 70%. We have PUTTING IT ALL TOGETHER of multimedia content downloads and wire- something that the other operators do not As a brand, 3 brings together the latest net- less data.The deal provides subscribers with have. There are different market segments work and video mobile communication easy entry to upgrade from their 2G or 2.5G with different requirements and we now technology and the best content — and mobiles, comparing favourably with the offer two very compelling propositions. delivers it to the public in an attractive and approximately HK$2,000 they can expect There will be a transition period and we affordable package. to pay for a 2.5G camera phone and the will facilitate the transition.” By being first in Hong Kong, 3 has been HK$200 tariff that the typical Hong Kong Hong Kong consumers are well able to sign up a strong portfolio of content consumer spends per month. informed. Citing a recent survey, Nardi says providers, which may leave late entrants With 3 up and running, Hong Kong has 70% of those questioned knew something struggling to compete. begun an exciting new journey down the about 3G and 30% said they were willing to In the build-up to the Hong Kong launch, mobile information highway. A significant try it. 3 signed contracts with several leading con- number of early adopters have already “We have also seen very positive signs tent and service providers over and above an entered the realm and the take-up rate is among our first customers. About 95% of already impressive list of international con- likely to accelerate into the 3G future.As the our subscribers have tried out our video call tent providers that were signed up earlier by advertisement on the fleet of “3 Cars” says, service and browse different content.This is 3’s European and Australian operations. it’s “full speed ahead”.
SPHERE 181612 3G
ON THE MENU
ontent is king”, and 3 provides plenty of it.The ser- 3 has also joined forces with TVB, the largest producer vice puts a rich selection of news and “infotain- of Chinese-language television programming in Hong Kong. “C ment” within convenient reach of everyone — Under the deal, video clips of popular TV series, variety anywhere, anytime. shows, celebrity interviews and news are available to Among the content providers, Reuters and Metro Radio 3 customers. deliver financial news, investment information, current affairs and 3 users can also watch Phoenix InfoNews for current affairs interviews with top business leaders. and financial information from Mainland China, Taiwan, Hong A partnership with pay-TV channel i-CABLE Communications Kong and the world.The Yes TV Plus’ Soundtrack Channel mean- provides 24-hour video mobile news reports and traffic updates. while features the hottest music videos from the movies and Subscribers to the 3 Service can also visit the “M-Site” to access television, movie news from Hollywood and interviews with i-CABLE’s soccer website (www.isoccer18.com). Thanks to deals the stars. signed earlier in the UK and Europe, fans in Hong Kong can also The services of 3 are classified into “Interactive access English Premier League UEFA Champions League and Communications” and “Information and Entertainment”. Italian Football League Serie A action. Here’s what’s on offer:
INTERACTIVE COMMUNICATIONS
VideoCall WebCall Mail Speak face to face with Visually connect to any- Send and receive multi- friends, relatives and busi- one with a 3 video mobile media messages while on ness associates in real phone, Vfone or camera- the move and organise all time. equipped PC with your voicemail, e-mail, fax- Internet link. mail and contacts. VoiceCall Local and international VideoMessaging M-Card voice calls are crystal Create your own movie Make someone’s day by clear and easy to manage. clip then send it instantly. sending them an M-card.
INFORMATION & ENTERTAINMENT
News Xtreme Games Breaking news from around Video clips of snowboard- A selection of exciting the world from leading ing, surfing, motocross, sports, shooting and news providers in video, skateboarding and more. adventure games. audio and text formats. Movie M-Sites Finance Find out what’s on the Direct connection to Gather market intelligence silver screen — with pre- quality sites hosted by from Asian, US and views of the latest releases. selected partners. European stock markets 24 hours a day. Music 3Express Stream and download Personalise the profiles Weather full version music videos of DailyExpress and Keep tabs on the weather and original songs. ExpressLink. locally and globally. Entertainment 3Care Traffic Highlights of TV dramas, An easy way to manage Connect to cameras at showbiz and more. passwords, bill information key traffic points. and other key facts. Fashion HomeWatch Seasonal fashion-show Download Monitor your home or videos from the most An entertaining selection office via a security camera. renowned brands. of downloads, wallpaper and ringtones. Sport Playboy News and action from top Access for over 18s Dining sporting events. to content from A unique guide to Hong Playboy magazine. Kong’s best restaurants. Football Score updates plus video Sensation Comedy highlights from the UK, Asian adult content for Enjoy a good chuckle over Europe and Asia. over 18s. humorous video clips.
SPHERE 122319 COVER STORY The Intelligent Advantage
Well-known for its “old economy” business acumen, HWL is also a world leader in harnessing the power of information technology to improve performance.
By Arun Sudhaman