THE INTERNATIONAL JOURNAL OF THE GROUP SPHERE 11

TTHEHE IINTELLIGENTNTELLIGENT AADVDVANTAGEANTAGE SPHERE CONTENTS Number 11 April 2004

2 14 UPDATES TELECOMS NEWSBITES 3 CHEERS Latest developments from the 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 ’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 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 () 15,471 16 1,195 23

Profit attributable TELECOMS () 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 Group acquired in October 2002, higher commodity share was HK$1.73, both unchanged from the year before. prices for , 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 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 ; 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 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 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 -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 in , Taking advantage of the market opportunity During the year, Husky paid a special on Jan. 9, 2004. The Sea Rose will in , 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 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 , 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 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 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 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 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 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.) 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 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 . 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 , 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 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 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 (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, , “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 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 , 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 , 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 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 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 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, 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

hen Huchison Whampoa Limited (HWL) successful- STRATEGIC VISION ly completed a US$5 billion corporate bond financ- At the dawn of the new millennium, HWL foresaw the future. W ing deal last November, it was not just the huge sum Having led the drive for faster financial reporting for some years, involved that caught the attention of the industry but the speed the company decided it was time to take a fresh look at its and efficiency at which the company was able to pull it off. financial systems. The apparent behemoth had again proved to be remarkably With Group Finance Director Frank Sixt at the forefront, the nimble in its ability to crunch the numbers. Group initiated an IT programme that would stretch its lead Taking advantage of relatively low borrowing rates and high even further. levels of liquidity to launch the multi-tranche facility, HWL initi- Whilst the rest of the world played catch-up over the next few ated and then closed the deal, which was the largest ever in Asia years, and the clamour for quarterly reporting grew, HWL had outside of Japan, in a matter of days. already embarked on a journey that would see it create a state-of- It was the Group’s sixth visit to the bond markets in 2003, the-art financial software system that supports continued world- bringing the total for the year to some US$10 billion and class corporate governance. prompting a barrage of plaudits from the financial media.Among When the Group began its search for software that would bring them, International Financing Review (IFR) and FinanceAsia named increased benefits to its financial reporting systems, it was careful Hutchison “Borrow of the Year”for its “phenomenal” feat. to avoid the trap of implementing the latest technology simply for The achievement was a powerful testimony to the Group’s abil- its own sake. Rather, it wanted the kind of system that would pre- ity to provide financial data at short notice through the deploy- cisely align with its business objectives — to make the Group and ment of advanced and customised IT reporting systems. its people even faster and better at what they do. Amid the everyday tales of crashed computers, malfunctioning Out of these requirements, the Group’s vision of EBIS servers, debilitating viruses and junk e-mail, it is easy to forget that (Enterprise Business Information System) began to take shape. information technology (IT) exists to make life easier. Utilised in “We wanted to improve both internal and external reporting the right way, it allows a company to work smarter, faster and processes by making them faster and more accurate, but there more productively. were no off-the-shelf offerings that could do this,” says Kwan

SPHERE 1221 COVER STORY

Cheung, HWL’s Deputy Group Chief Accountant. “So we got origin, creating a greater focus on individual accountability. IBM and Oracle involved and began work on HARP (Hutchison “The system is only as good as the information fed in,” says Accounts Reporting Package) — a customised solution built on Cheung.“EBIS certainly affected a shift in thinking and account- top of a standard Oracle financial system.” ability, and removed human error to a large extent by automating The enormity of the task soon became a large part of the more tedious manual tasks clear. Not only did the Group’s business previously required.” processes and financial systems require stan- This transition would not have been possi- dardisation but the actual philosophy under- ble if the software did not exactly match the pinning these systems would need to evolve. needs of various Hutchison divisions in dif- “This was not just about systems but also “Top management ferent countries. EBIS works by standardising about the thinking underlying them,” notes figures from disparate reporting structures, Cheung. “We were using world-class tech- can now log on making adjustments automatically and leav- nology to change people’s thinking and meet securely anywhere ing a clear audit trail. our objectives.” To best understand the EBIS system’s in the world” mechanics, it is helpful to consider a practical PERFORMANCE-ENHANCING example of how the results of Hutchison Port The new EBIS software would not just Holdings’ (HPH) widespread operations get improve the technological infrastructure, but consolidated into the Group results. would also enhance the processes behind the The results of an individual port, once systems — and the people behind the processes. By introducing completed and verified, are automatically summarised in HPH’s a standard consolidated system of data input across all business reporting format and then translated to Hong Kong dollars, groups, data integrity immediately improved, reporting became HWL’s reporting currency.A similar process occurs across all the more accurate and human errors could be traced to their point of HPH operations, with consolidated information submitted from

SPHERE 221222 around the world.When HPH has consolidated the results of all EBIS are impressive enough.Taken as a whole, they have allowed its operations, they in turn are rolled up into the Group’s consol- HWL to revolutionise the speed at which it can report as well idated results. The reporting format, translation, transfer of data as assess and make decisions based on financial data, providing the and actual consolidation process are all automated, making the company with a significant competitive edge. process faster and more accurate. As Nicholls points out: “This is not akin to being in the top 25% or 10%. Successful INFORMATION ON TAP companies are about being as agile as they The Group, its divisions and its subdivisions need to be, and this technology allows us are all able to quickly and accurately “This technology to capture opportunities in the smallest extract the analysis they require via the of windows.” HARP system. allows us to HWL’s US$5 billion bond issue in If EBIS represents the building blocks that capture opportunities November 2003 was a case in point.The deal are so necessary for the efficient financial had to be closed in less than two weeks and reporting of the various divisions, the top of in the smallest would not have been possible without the the pyramid is occupied by the Group’s improved reporting timetable. Management Information Portal. of windows” “We have moved from closing in three “It is about getting the right information weeks to being able to close in seven days,” to the right people,”explains David Nicholls, says Cheung. Head of the Group Information Systems Department. “Top management can now log on securely any- BUSINESS-FRIENDLY where in the world and get up-to-date information about the The evolution of EBIS demonstrates HWL’s ability to utilise state of the business.” technology in the most effective manner possible.The Group has Taken individually,the various enhancements brought about by never been afraid to translate sophisticated technology into some-

SPHERE 1223 COVER STORY

thing commercially viable by using it where necessary to make pany’s daily operations. The controlled deployment of advanced the conglomerate more efficient and more profitable. technology has also produced a workforce that favours innovation Nicholls stresses that, at Hutchison, technology must be busi- because it has already experienced the benefits. ness-friendly.“We make sure that we talk and, more importantly, “We have opened the doors for people to become more tech- listen to our customers and then install simple technology that enabled, by providing them with relevant training,” says Nicholls. helps people,”he explains.“We are early adopters when it suits us, “The partnership between business and IT allows people to but information technology has to be driven by the business.” come up with innovative solutions which best suit their This approach has helped to foster a working culture at business requirements.” Hutchison that values the contribution made by IT to the com- Continuous training of its staff is one of the reasons why the

THE OPERATIONAL ADVANTAGE

hen a customer buys an item at a PARKnSHOP store, approach, enabling the company to the transaction automatically triggers a chain reaction build flexible solutions that help it to W that goes all the way up and down the supply chain. communicate anytime, anywhere Integrated software responds to the “event” by updating infor- using secure office, home and wire- mation for various departments throughout the organisation. Not less technology that allows manage- only is the transaction filed for accounting purposes but the dis- ment, employees and, vitally, suppli- tribution chain is also alerted, ensuring that the store never runs ers and customers to stay in touch out of supplies. at all times. “From the moment the bar-code is scanned by the cashier at To support this flexible Web-based approach, ASW developed point of sale, the information is transmitted via the store server an IT strategy called SIMPLE (Smart Infrastructure Makes People’s to a centralised computer,” explains C. K. Lai, Financial Controller, Lives Easier). Essentially, SIMPLE comprises the technical architec- Group Finance at A.S.Watson & Co. Ltd. ture, the two data centres, the network system servers and the “If the customer purchases a bag of rice, for example, the inven- common databases upon which all the other IT systems sit. tory level is automatically reduced by one.When the number of “The architecture is designed with mobile deployment and 3G units on the store shelf falls below a pre-set level, a purchase technology in mind, so ASW can take advantage of the exciting order is automatically sent to the supplier who sends more bags developments in these areas,” says Mr Lai. of rice to the PARKnSHOP warehouse, which in turn are deliv- ASW then introduced software systems that were appropriate ered to the particular store to re-stock the shelves.This is a huge for its various subdivisions. For example, its PARKnSHOP and change from the old days when staff had to manually count items Fortress subdivisions deployed Retek software, an Oracle-based to keep track of inventory,” Mr Lai explains. suite of applications that provides solutions in the areas of “The information flows both ways,” he adds. “When prices merchandising, warehouse data, distribution management, demand change, head office prepares the information and sends it to the forecasting, sales auditing, customer order management and various store servers. Of course, the staff still have to physically various other functions important for the smooth running change the price tags on the products, but the point-of-sale scan- of retail businesses. ners already have the new information factored in.All of this dra- “The vision that was set for ASW’s IT team was to develop matically cuts down on man-hours, reduces error and improves systems that are of great value, but also simple to use,” the experience for shoppers.” Mr Lai confirms. The A.S.Watson Group operates more than 3,500 supermar- “With EBIS, ASW has achieved a very cost-effective solution kets and retail outlets across Asia and Europe, which together sell through deployment of a single system that can be accessed by over 200,000 product lines to some 10 million customers per over 800 users in five countries — Hong Kong, China, Taiwan, week in 16 different countries and regions. and .” To source, stock and sell such a vast selection of items out of The net result is that today millions of product lines through- so many stores requires a very high out ASW’s retail operations are sourced, transported, tracked, degree of logistical dexterity which stored, stocked, sold and replaced according to standardised prac- would not be possible without the tices and with the minimum of fuss. use of IT. Staff productivity has increased dramatically, customers enjoy When Hutchison introduced the exceptional value, and all financial transactions are handled EBIS system across all its business smoothly and efficiently, leaving a clear audit trail and allowing top units, ASW took the opportunity to management easy access to data at the press of a button. deploy new layers of IT that would “What’s more,” says Mr Lai, “whenever ASW opens a new both support the specific requirements of its businesses and also store anywhere in the world we can deploy standardised dovetail with EBIS. It was to be the biggest IT initiative ASW had IT systems that enable the new entity to seamlessly fit in with ever undertaken and would ultimately result in seamless front and the rest of the operation. Thanks to the intelligent use of IT, back office operations, delivering a competitive edge that has been ASW has succeeded in keeping costs under control, increased a driving force behind ASW’s rapid global expansion. profitability and made a very complicated organisation run After examining the options, ASW selected a Web-based like clockwork.”

SPHERE 2412 AGE OF THE INTERNET

Hutchison GlobalCenter owes its very existence to the Internet, due to a core ESDlife (www.esdlife.com) is a pioneer- business that revolves around the provision of managed data hosting services and ing award-winning one-stop public total IT outsourcing solutions to its customers. and e-commerce services to Hong In recent years, the trend towards outsourcing a company’s IT processes has Kong citizens. It can be accessed taken firm hold around the world, accompanied by a pressing need for increased through the Internet and a network of data centre capability. In meeting these demands, Hutchison GlobalCenter uses Internet kiosks. ESDlife allows people secure, best-of-breed IT applications to position itself as a market leader. to book, apply and pay for government Cost-effective Internet infrastructures enhance the sales & marketing processes, services — ranging from wedding reg- streamlining communications channels and istration, sports facilities and appoint- improving customer service management. ment booking for smart identity The security of its data-hosting card replacement to filing tax systems is of critical importance returns. In total, ESDlife offers to Hutchison GlobalCenter’s bilingual access to over 180 success, and the company has hroughout its divisions, Hutchison has government services from been awarded British been able to effectively leverage the more than 50 departments Standard (BS) 7799 certifi- T remarkable power of the Internet to and public agencies. cation. It incorporates streamline communications, create business ESDlife also operates the world recognised opportunities and enhance competitiveness. a fast-growing e-shop, information security At a basic level, the ability to communicate selling a variety of practice to assure and exchange data via the Internet has brought products and services its customers unob- marked improvements in terms of efficiency through its website structed operations and cost-savings. The Internet also serves as and is developing and bullet-proof infor- a valuable information resource for both the a successful online mation protection. Group and its customers through the use of advertising business interactive websites. In the e-commerce arena, Hutchison has been quick to realise the sales opportunities afforded by the Internet. Priceline, bigboXX.com and ESDlife are all prime examples of business- es that utilise the Internet as a virtual shop Hong Kong-based office sup- floor to provide customers with convenient At Hutchison Whampoa plies provider bigboXX.com access to products and services. Property Group (HWPG), uses the Internet to enhance its Internet and networking technolo- competitive edge in the B2B arena. gies have been used extensively Deploying state-of-art technology to improve business efficiency and with an integrated distribution sys- effectiveness. Today, HWPG has built tem, bigboXX offers corporate an advanced IT infrastructure based clients a value-added online procure- on its corporate intranet, enabling ment solution that reduces their Based on the extremely successful US it to effectively centralise its administrative workloads and model selling airline tickets, hotel accom- global operations. enhances operational efficiencies.The modation and car hire, Hutchison owns Nowadays more and more business company sells and delivers a range of and operates Priceline in Hong Kong and processes rely on the architecture for some 8.000 office supplies — from Singapore, with rights to expand into information that provides intelligence paper and stationery to furniture and other Asian countries. Deploying a for operational efficiency and deci- business machines. sophisticated IT platform, Priceline sion-making support. For example, The IT platform enables bigboXX to matches buyers with sellers via its there is a single full-fledged web- take orders directly and process pay- Internet portal, selling air tickets and based flat sales system serving all ments over the Internet. By operating hotel rooms at substantial savings and sales operations and management. a “virtual” shop front, supported by convenience to customers.The IT system A new class of video-conferencing efficient IT-enabled backroom, ware- can “match-make” offers with some 9,000 service is also provided to offices in housing and delivery operations, hotels and over 30 airlines, creating HWPG through the corporate bigboXX achieves significant savings a win-win situation for buyers and intranet over which other mission- on operational costs, which are sellers alike.The services are available at: critical business applications are being passed on to consumers. priceline.com.hk and priceline.com.sg delivered concurrently.

SPHERE 1225 COVER STORY

PROGRESS THROUGH INNOVATION

ituated in the world’s busiest container port, Hongkong Besides facilitating the smooth flow of con- International Terminals (HIT) is the flagship operation of tainers into and out of the port, IT is also used S Hutchison Port Holdings (HPH). Here, outsized cranes do extensively for the flow of information, keep- most of the heavy lifting while computers do the thinking. ing relevant parties connected. Customer Plus is Every hour, hundreds of heavy containers are moved with the an on-line platform that provides a direct link between HIT and its precision of pieces on a chess board. In a two-way cycle, the customers, enhancing HIT’s communication with all terminal users boxes are collected or delivered by trucks, stacked at the and enabling business information to be exchanged electronically. quayside and transferred from ship to shore or shore to ship with “The system has the benefits of streamlining business processes mind-boggling efficiency. and reducing procedures while improving response time and accu- To the untrained eye the entire operation resembles the random racy,” says Wong.“It also provides customers flexibility and control chaos of toys spread out in a child’s playroom, but on over information.” a gigantic scale. In practice, however,each container,each truck, each Using Customer Plus, shipping lines can retrieve vessel and contain- crane and each ship is carefully monitored and controlled with the er reports, access updated information on vessel schedules and con- help of specially designed computer technology. tainer status, input data and transmit instructions. General terminal With a yard capacity of over 80,000 containers, HIT not only users can use Customer Plus to get terminal information and make needs to carefully track each container but also needs to place the general enquiries while barge operators can access boxes in the most appropriate position to swiftly be moved along information on barge schedules, make ID enquiries and download the logistics conveyor belt. barge EDI templates. “The terminal keeps getting more efficient,” says Patty Wong, HIT further streamlines its barge operations using the Barge General Manager of IT.“We set another new record in July, loading Identity Card (BID) system, which automates identity authentication 272 containers in one hour on to a single ship.That’s more than nine processes and facilitates the flow of information between barges and containers every two minutes and it beat our previous record by 36. the terminal. “In fact,” Ms Wong adds,“HIT has increased productivity by over To streamline the flow of road traffic, external truck drivers can 70% and seen business growth of over 40% in the past ten years make appointments using HIT’s Tractor Appointment System,thereby without any increase in land or berth — all due to the introduc- minimising waiting time and reducing terminal congestion.The sys- tion of highly efficient operational procedures supported by tem uses interactive voice response and the driver’s Tractor Identity advanced IT solutions.” (TID) card. Upon arrival at the terminal, vehicles are recognised One such solution is the Productivity Plus through TID scans then directed by the Mobile Terminal Programme (3P), which has significantly improved Message system to the exact location in the yard for pickup or stacking capacity, increased handling capacity grounding of a container. and expanded overall yard operations, translating “This not only speeds up pickup and drop-off times, but also into quicker turnaround times for all users of enhances safety as the driver can remain in the vehicle throughout the terminals. the procedure,” Wong explains.“The entire process is monitored by “Before vessels even berth at HIT, key informa- HIT’s 3P system. At the exit gate, vehicles can record their move- tion, such as the number,weight, size and type of con- ment confirmation from inside the cab simply by swiping their TID tainers is sent to the terminal via the Electronic Data card at the checkpoint computer.A terminal receipt is printed out Interchange (EDI) and Customer Plus systems,” Ms Wong and the vehicle is free to leave.” explains. “Using this information, the ship planning system, called It’s not just at HIT where information technology plays a major Guider, designs an effective game plan for loading and offloading con- role. IT streamlines operations at all the 32 ports where HPH oper- tainers in the most efficient order, and this is implemented as soon ates, with individual ports deploying appropriate technology to as the vessel arrives. Moreover, planners are able to determine the enhance their efficiencies. most appropriate yard areas for grounding containers according to Yantian International Container Terminals (YICT), for example, their designated vessel, weight class and port of discharge. This is developed the Integrated Community System to provide users with made possible via the latest Yard Planning and Advanced Grounding real-time information on container movements, vessel schedules and Strategy system, which maximises the efficiency of container flow customs inspection status. through HIT’s container yard.” In another initiative,YICT, together with Dapeng Customs office, The hub of operations is HIT’s Control Tower, which commands jointly developed a Customs Electronic Inspection System that and co-ordinates activities throughout the terminal. The Control transmits real-time information on customs inspection require- To w er is equipped with the Operations Monitoring System (OMS) and ments, processes and results, replacing the previous practice of supported by closed circuit television, providing an overview of ter- manual document interchange. minal activities and productivity — all on a single computer screen. In the area of container security, HPH Due to the dynamic requirements of the supply chain, the key ele- has been a leading player in the global devel- ments of all of these systems are versatility and speed. HIT is able to opment of Smart and Secure Tradelanes,a handle all unanticipated changes, whether they are last-minute cus- radio frequency tracking system that tomer requests or adverse weather conditions requiring well-exe- deploys technology that was first devel- cuted contingency plans. oped by the US Department of Defense.

SPHERE 2612 Group has been able to attract the brightest personnel in the IT field. “Our aim is to recruit the best, train the best and retain the best,” says Nicholls. “Over a three-year period from the start of EBIS, we invested over 100,000 training days for our IT staff in the China region alone, ranging from overviews to detailed technical courses which carry worldwide accreditation. As a policy we encourage our staff to adopt a continuous training and learning philosophy,supporting the development of new skills both techni- cal and personal.”

AHEAD OF THE CURVE Now that the building blocks are in place, Nicholls foresees a future where HWL’s divisions across the globe can deploy com- plex financial IT systems quickly and easily. “We now have a new baseline,” he says. From this improved starting point we can accelerate the pace at which we get better. A.S. Watson and HPH can now rapidly roll out financial systems anywhere in the world — all that is needed are lease lines, PCs, training and templates.” The next stage in the progression of EBIS will see continued consolidation of financial systems across the different divisions to provide even greater levels of interoperability. A.S. Watson has implemented an Oracle-based IT system to standardise its customer relations, merchandising, trade and distri- bution management in accordance with the EBIS ethos. Other divisions are following suit, harnessing the astonishing power of IT to bring real benefits to the Group and its stakeholders. “Individually our sub-groups are passionate about deploying the right technology to maintain lead- ing positions in each of the markets around the globe,” Nicholls says. “Collectively however, the combined power of knowledge, experience and solutions becomes far more powerful when applied across the whole Group. We are doing more and more to capture this additional energy with regular technology events and discussion forums across all levels in our organisations.The results of having shared goals will be realised in a number of areas – common skills, common lan- guage, the very best corporate contracts and few but clear policies and technology standards.” This new way of working has also led to Group sponsored projects. “We build once and deploy many,” Nicholls explains. “Such approaches allow our divisions to become even more focused on providing state-of-the-art business solutions, more simply, more quickly and with more support from the HWL community.The result is that we will keep getting better and, more importantly, keep all our companies two steps ahead of the competition.” But as Hutchison continues to ably demonstrate, technology has little value unless used effectively.The true value lies in the Group’s ability to combine technological savvy with commercial acumen. By realising and articulating its future business needs, the Group has ensured that its groundbreaking IT initiatives will serve it well in the fast-paced business environment of the 21st century.

SPHERE 1227 HOSPITALITY CAPITAL COMFORT

Beijing’s newest luxury hotel offers the best of both worlds for discerning travellers.

By Gwyneth Roberts

he Oriental Plaza development The Chicago-based Hyatt Hotels Group “It was an opportunity for both Hyatt and along East Chang’an Avenue may needed a site in the Chinese capital to com- the developers,”says Mr Foued EL Mabrouk, T not be Beijing’s most famous plement its network of deluxe properties in Director of Marketing for the Grand Hyatt landmark but it is rapidly becoming one of prestigious locations around the world.Talks Beijing.“It presented value on both sides.” the most popular. Just a few minutes walk began in August 2001 and in October that Hyatt now has seven hotels in Greater from the Forbidden City, the prestigious year the Grand Hyatt Beijing opened China, with properties in Shanghai,Tianjin, complex adds a physical dimension to this to the public. Xian,, Hong Kong and Macau. historic capital that reflects China’s emer- The Grand Hyatt Beijing’s opening had its gence as an economic global powerhouse. challenges: doors opened within weeks of Developed by a Hutchison-led consor- the September 11 terrorist attacks in New tium, Oriental Plaza is a modern retail, York, which brought business traffic out of office and residential complex of epic the United States and many other parts of proportions. In fact, it is the largest in the world to a grinding halt. The SARS out- Mainland China, covering a million square break last year was another heavy blow for feet of land. the Asian hotel industry.Yet the Grand Hyatt The development is made up of The Beijing has already made an indelible mark Malls, featuring five themed shopping on the city’s budding hotel scene. arcades with more than 200 brand-name “We are positioned as the leading hotel in stores, a six-theatre multiplex, and a central the city,”says Mr EL Mabrouk.“We have had plaza with a musical fountain and land- a good start for a new hotel.” scaped gardens — all serviced by an enor- Last year, Grand Hyatt Beijing achieved mous indoor car park.The Towers consists the No.1 ranking in terms of revenue per of eight commercial buildings that are the available room in the city. Corporate and Mainland headquarters of many global business travellers make up 90% of the guest companies, and four blocks of luxury ser- mix, mostly top-level executives from multi- viced apartments. The five-star Grand national companies. Hyatt Beijing hotel is the resplendent cen- The hotel is also known as the city’s trepiece. premier high-end meeting venue. It hosted When the developers of the Oriental the World Economic Forum’s China Plaza were looking for a company to man- Summit last April and November, which age their luxury hotel property, they draws top-level decision-makers and strate- turned to the Grand Hyatt. gists from around the world.

SPHERE 1229 HOSPITALITY

Part of the success of Grand Hyatt Beijing ter-skelter pace,the hotel is firmly embedded the grand foyer illuminated by sweeping is its artful blend of old and new.It combines in a powerful cultural heritage. It is built floor-to-ceiling windows that allow plenty ultra-modern facilities and contemporary using the quadrangular principles of ancient of natural light. design with the rich and diverse history of Chinese architecture. Fountains at the On the south side, the hotel looks on to which the city is so proud. entrance initiate a water theme based on the busy East Chang’an Avenue, ten min- In a metropolis that is developing at hel- fengshui principles, guiding the visitor into utes’ walk from Tiananmen Square, the Forbidden City and the Great Hall of the People and close to the popular Wangfujing shopping area.To the north it overlooks tra- SENSATIONAL SERVICE ditional Chinese buildings believed to have housed the emperor’s tutor in years gone by, and now part of a teaching hospital. The hotel’s contemporary architecture is he 582-room Grand Hyatt sion tailor-making a year-round calendar enhanced by the understated luxury of nat- Beijing employs close to 900 based on the needs of each department. ural wood, glass, stainless steel and marble staff, ranging from cleaners and On any given day the hotel’s three train- T finishes. Its permanent art collection includes concierges to masseurs, sales staff and ing rooms are filled with Hyatt students the work of leading Chinese artists put even an Italian chef. learning anything from English to together by Hong Kong-based contempo- The management team is lead by hygiene and presentation. rary art expert Alice King, who owns the Christopher Koehler, who has recently “Ongoing training is part of our posi- Alisan Fine Arts Gallery. The works of relocated from his post as Resident tioning,” says Mr EL Mabrouk. “We want renowned painters and sculptors — includ- Manager at Grand Hyatt Shanghai. Mr to be different and we have our own ing Wang Dalin,Jiang Je and Long Xiang — Koehler is switching roles with Peter unique style and way of delivering. Beijing are combined with a tasteful collection of Chau, who has been at the helm since the is a competitive market and we also need Chinese ceramics and furniture, fine silks and hotel opened in 2001. to compete on an international level.” fresh floral arrangements, which enhance “At Hyatt we believe that fresh eyes Training in the hotel complements a private rooms and public areas alike. can look at a hotel in a different way,” says group-wide programme whereby Hyatt Throughout the hotel, the emphasis is on Director of Marketing Foued EL aims to maintain its global brand promise. privacy and discretion. It has 582 rooms and Mabrouk. “It is part of our philosophy of “We always respect the local culture of suites, full conference and business centre constantly seeking to improve and the place in which we operate,” says Mr facilities and boasts state-of-the-art commu- strengthen the brand in all locations.” EL Mabrouk. “And we need the level of nications systems and a resort-style gym that Staff training is a continual process, service and delivery of that service to be meet the needs of any high-end corporate or with the hotel’s dedicated training divi- the same wherever we are.” leisure traveller. Food and beverage outlets

SPHERE 223012 SOUND BUSINESS SENSE

f the walls of the Grand Hyatt Beijing vate check-in and a welcome drink before see the sights when they have a bit of free could only talk they would have a few being escorted to their rooms. time and still get on with their work.” I interesting tales to tell. Deals are done Busy executives can easily stay in touch The hotel’s health and fitness complex every day, and often late into the night, in with the world at large as well as the office, known as Club Oasis, built on a Balinese the top hotel of the capital of the world’s wherever it may be. Rooms and suites theme, offers a restorative retreat from the fastest growing economy. offer seamless communication systems hustle and bustle of downtown Beijing. “All business starts in Beijing,” says with computer dataports, free broadband Guests can use the resort-style 50-metre Director of Marketing Mr EL Mabrouk. access, dual-line or direct-line telephones pool while immersed in tropical vegetation “You may want to operate in Guangzhou and televisions with a selection of interna- and the calming sounds of birdsong, which but you first need to come to the tional channels. filters underwater, beneath a vast virtual capital to obtain the necessary approval The business centre provides confiden- sky that adjusts according to the time of and licensing.” tial services, fax, copying and computer day.The centre also boasts state-of-the-art Most of the hotel’s bookings are made facilities as well as an information library. gym equipment as well as several Jacuzzis, from the US, followed by Hong Kong and The Grand Club lounge serves compli- saunas, steambaths and a solarium. Massage Mainland China.The majority of guests are mentary continental breakfasts and evening facilities are available in a dedicated area or employed in multinational companies in cocktails and canapés, offering business in the privacy of guest suites. major industries such as finance, IT and travellers just the right environment to The hotel offers 1,600 square metres of telecommunications. prepare for the day or relax and recharge meeting and function facilities, with all Many corporate guests make use of the in the company of colleagues and like- rooms on the same level and equipped hotel’s Grand Club facilities, incorporating minded travellers. with the latest technology to handle any- four floors of exclusive accommodation on Thanks to its prime location, the hotel thing from a global conference to an annu- the upper floors. allows corporate travellers a unique com- al general meeting, cocktail party, product On arrival by chauffeur-driven limousine bination of business and pleasure. launch or private board meeting. or taxi (just less than an hour from Beijing “We’ve had guests who say they’ve been The in-house Convention Service Capital International Airport) guests are to Beijing half a dozen times and have never Department offers a one-stop shop for whisked discreetly up to the 17th floor seen the Forbidden City,” says Mr EL clients who deal with a dedicated skilled Grand Club lounge where they enjoy a pri- Mabrouk. “Our location means guests can meeting planner when organising an event.

SPHERE 122331 HOSPITALITY

are among the best in the city.All restaurants designers Super Potato together with Hong changing face of China,” says Mr EL have private dining areas and VIP rooms Kong graphic designer Alan Chan, it offers Mabrouk, a Beijing veteran of 20 years. catering to guests’ distinctive needs. a trendy private club experience perfect for “There’s been a complete change in this Guests can dine at the Grand Café on the pre-dinner drinks or late-night cocktails. country. The standards of living have mezzanine level, which offers French, The venue includes a sushi bar and cigar improved enormously. Here we are posi- Italian and home-style Beijing cooking 24 bar, while a four-piece female band Moon tioned in a deluxe hotel on the footsteps of hours a day. An interactive show kitchen Mood performs modern music on tradi- the Forbidden City and Tiananmen Square allows diners to watch skilled chefs prepare tional Chinese instruments. alongside an advanced entertainment and meals with the freshest ingredients. Within shopping complex that puts Beijing on a the Grand Café is Da Giorgio, a fine bou- par with any advanced city in the region. tique restaurant offering classic Italian food. The progress has been enormous.” The hotel’s newest dining experience, The hotel’s commitment to excellence Made In China, offers Northern Chinese has certainly paid off. It has twice been cuisine in another compelling mix of old “Grand Hyatt Beijing named the best hotel in Beijing by Business and new. Here again diners can enjoy an Traveller magazine and in March was voted interactive experience with traditional and achieved the number the best hotel in Beijing by Asiamoney modern dishes prepared before their eyes, as one ranking in magazine, which polled executives and well as an impressive wine cellar and a ded- corporate travellers at top companies in icated Chinese tearoom. terms of revenue the region. Noble Court serves Cantonese cuisine “At present we are concentrating on prepared by master chefs from Hong Kong per available growing our market share and growing in an elegant setting resembling the home profits for the owning companies,” says of a Chinese nobleman. The hotel also has room in the city” Mr EL Mabrouk. its own patisserie, which prepares Hyatt- With two new F&B outlets added last style desserts, pastries, cakes and chocolates year and a full range of services and facili- made from the freshest ingredients. The ties, the young hotel has already distin- Fountain Lounge offers afternoon teas and guished itself as a dynamic presence. evening drinks. With its innovative concepts, superior As the city gears up for the 2008 Grand Hyatt Beijing’s latest venue is the service and twin commitment to heritage Olympic Games and consolidates its posi- Redmoon bar and restaurant, which has and progress, the Grand Hyatt Beijing offers tion as one of the world’s major business caused a stir among the city’s new up-and- a distinctive experience for visitors to the and tourism centres, the Grand Hyatt coming set since opening late last year. Chinese capital. Beijing is comfortably positioned at the Created by renowned Japanese interior “This hotel in many ways reflects the forefront of Oriental opulence.

SPHERE 32