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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting

QCOM 170.90

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Nov 7 9:30 AM EST

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From: Cooters	11/16/2004 8:25:54 AM
	of 196564

HK Sunday Ups 3G Supply Deal With China's Huawei sg.biz.yahoo.com UPDATE: HK Sunday Ups 3G Supply Deal With China's Huawei HONG KONG (Dow Jones)--Sunday Communications Ltd. (SDAY), Hong Kong's smallest mobile network operator, said Tuesday it is increasing the value of its third-generation telecommunications equipment supply contract with Huawei Technologies Co. (HWI.YY) to HK$1.21 billion from an original HK$859 million. A seven-and-a-half year loan which is worth the same amount as the three-year supply contract when the deal was announced in December has also been increased to HK$1.21 billion. "Our original agreement was flexible and allowed for such changes in the contract to respond to market conditions as they develop," said Sunday Group Managing Director Bruce Hicks. "We have increased the value of the supply contract because as we've been watching what's been happening in the rollout of 3G around the world, we have a seen a lot of blessings and we are even more bullish and optimistic about the future of 3G than we have been," Hicks said at a conference call. Hicks added that Sunday will buy handsets from Shenzhen-based Huawei, which just launched two models of 3G phones on Monday, though the supply contract covers the 3G network, not handset orders. Huawei owns an 8% stake in Sunday. So far, Hutchison Whampoa Ltd.'s (0013.HK) Hutchison 3 Hong Kong is the only 3G service provider in the city, with 124,000 subscribers at the end of July. SmarTone Telecommunications Holdings (0315.HK) is expected to launch its 3G service before Christmas. Sunday will roll out the service in early 2005. "We want to go out on this really hard, we want to build a battle ship," Hicks said. The first installment of the HK$1.21 billion payment to Huawei is due in May 2008. Sunday is expected to pay off the corresponding loan in eight installments. In addition, the maturity of another HK$500 million loan extended to Sunday by Huawei last December has been extended to seven and a half years from two and a half years. Sunday repaid HK$75 million of this facility in July. The next repayment is due in July 2006 and the final installment in July 2011. Sunday Communications shares were suspended from trading Tuesday. They closed at HK$0.455 on Monday. The shares are likely to resume trading on Wednesday.

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