Hong Kong's CSL May Spend More Than Competitors On 3G Rollout
09-25-01 06:42 AM EST | HONG KONG -(Dow Jones)- CSL Ltd., one of four third-generation mobile service license holders in Hong Kong, may spend more than its competitors on the rollout of its 3G network but its budget will depend on market conditions, Chief Executive Officer Hubert Ng said Tuesday.
During a press conference to announce its 3G equipment supplier, Ng said CSL will "probably spend more" than the HK$1.5 billion to HK$2 billion the other license holders will reportedly spend on their networks.
However, the decision will depend on market demand, said Ng.
CSL, a joint venture between Australia's Telstra Corp. (TLS) and Hong Kong's Pacific Century CyberWorks Ltd. (PCW) was awarded one of four provisional 3G licenses last week.
Ng said no deadline has been set for the company's 3G network rollout, and it could be next year or later.
He noted 3G still faces many challenges in the global market, including in Japan and Europe. Uncertainty remains in the handset market, and the market won't pick up until attractive products are available to consumers, he said.
He also said CSL has already invested heavily in 2.5G and it will now focus on promoting 2.5G services in the run-up to its 3G launch. CSL will also focus on data applications and data transmission, as demand in that sector is expected to pick up.
"We know that there will be more data services introduced in the company, and that will help stabilize our (average revenue per user) ARPU," he said.
Ng said CSL's ARPU now stands at HK$400, and going forward, it's expected to stay around that level.
He also said the company won't seek external financing for its 3G network because the company has sufficient funds. - - 25/09/01 10-27G
(This story was originally published by Dow Jones Newswires)
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