On Sat, 8 Aug 2009 15:17:00 +1000, "Rod Speed"
<rod.speed.aaa@gmail.com> wrote:
>Because they are the least profitable mobile telco,
>and are attemping to avoid going broke, stupid.
It's by no means certain that Hutchison Communication ("3") will go
broke
http://www.zdnet.com.au/news/communi...9296847,00.htm
Vodafone, Hutchison complete VHA merger
Liam Tung, ZDNet.com.au
10 June 2009 11:33 AM
Vodafone and Hutchison yesterday completed the 50-50 joint venture to
create VHA Pty Limited.
Hutchison Australia issued a statement this morning via the Australian
Stock Exchange detailing the transaction. Vodafone Australia will now
become a wholly owned subsidiary of Hutchison's Australian operations,
which itself will be renamed VHA Pty Limited.
The Australian Competition and Consumer Commission (ACCC) late last
week opted not to oppose the merger on the basis that long-term
competition between the two was not sustainable.
The merger will see Nick Read, chief of Vodafone's Asia Pacific and
Middle East region appointed as chairman of VHA, while Nigel Dews,
chief of Hutchison Australia, will become CEO of the new entity.
While the Australian Telecommunications User Group said "it regards
the potential loss of Hutchison pressure in this market as very
negative", the view of the merger from competing mobile provider Optus
was more upbeat.
Last week, Optus chief executive Paul O'Sullivan agreed with the
ACCC's decision that over the long term the two companies' operations
were not sustainable, but issued a threat to the new entity. "I'll
promise that we're going give the new guys from Vodafone a really
exciting and interesting welcome," he said at a TransTasman Business
Circle briefing last week.
Optus is also yet to enter discussions with VHA about what will happen
with the network it owns together with Vodafone. "At this stage we've
made no definitive decision on network. We expect to be able to engage
in the next few months to get a good outcome," said O'Sullivan.
Flashback 2003
http://www.zdnet.com.au/news/communi...0273730,00.htm
3's a company...finally
James Pearce, ZDNet Australia
15 April 2003 03:40 PM
Hutchison launched its '3' mobile service in Australia today,
unveiling an aggressive pricing scheme which could possibly lead to a
price war.
The network is available in Sydney and Melbourne, with Brisbane,
Adelaide and Perth scheduled for third quarter availability. It allows
real-time video phone calls, a feature only Hutchison offers.
At present, a slight latency is evident during calls, and a
split-second difference between hearing a person's voice and seeing
their lips move, but the company expects the service to improve over
the course of the year.
Hutchison's network has a theoretical speed of 386 Kbps, compared with
Telstra's 144 Kbps, but Russell said the data rate currently
fluctuated between 50-250 Kbps, and this was likely to improve over
the year.
The viability of Hutchison's 3G network has been questioned, with many
analysts pointing out the company will need deep pockets to last until
they see a return on investment. During the launch of its Mobile Loop
service, Telstra spokesperson Ted Pretty pointed out the cost to roll
out its system was well below Hutchison's, and intimated the incumbent
telco giant expected that to be reflected in the price of services
offered.
At the launch, Hutchison CEO Kevin Russell tackled these issues head
on: "Our global parent, Hutchison Whampoa, is a multinational...in
1999 it was the most profitable company in the world," he said. "At
December 2002, Hutchison Whampoa had cash and cash equivalents of
AU$28 billion." This is the "deep pocket" that Russell said would be
providing funds as they are needed, until the Australian unit achieves
positive cash flow.
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