Technology news and Jobs 
Telecommunications Hutchison achieves the magic million
Telecommunications Hutchison achieves the magic million | Hutchison achieves the magic million |
|
| by Stuart Corner | |
| Wednesday, 23 August 2006 | |
      
EBITDA was positive $1.3 million compared to a loss of $122,000 in the same period last year. However the latest figure excluded costs of almost $300 million associated with the closure of the CDMA network. During the first half, the company recorded an underlying NPAT loss of $225.5 million, an $80 million improvement on last year's figure. CEO, Kevin Russell, said that the number of customers transferring from CDMA had been marginally higher than expected but "the speed of customer uptake meant the closure date was significantly earlier than we anticipated." 390,000 3G customers were added in the first six months of 2006, including converts from CDMA. Telstra, which launched its 3G service in September 2005, managed to sign up 317,0000 customers by 30 June. Optus has not disclosed 3G numbers. Vodafone, which launched 3G in November 2005, said it had passed the 100,000 mark at 31 March but has not disclosed numbers at 30 June. Hutchison, however is laying emphasis on another figure. Russell, said: "In recent days, our 3G post-paid base has passed one million, which, we believe, positions us as the number three post-paid mobile operator in Australia (ie ahead of Vodafone)." According to Russell, service revenue in the 3G business rose by 65 percent from $218.1 million in the first half of last year to $360.1 million in the six months to 30 June and contributed 85 percent of the company's total service revenue. In the half year the company recorded costs of $299.2 million from the closure of its CDMA network, $173.2 million from accelerated depreciation an amortisation. However, Russell said that, with the network closed "savings are being realised and we will see a rapid payback on the closure cost. 3 is now uniquely positioned in the mobile market, with 100H focus on 3G." He added: "As a result of our 2G business closure, significant cost savings will be realised, evidenced already by approximately $58 million of reduced running operating costs in the 2G business for the current six month reporting period as compared with the corresponding period last year. The company has seen significant improvement in non-voice revenue: an increase of almost 70 percent to $79.4 million. "During the period, 57 percent of our customers regularly paid for content, and there were 770,000 monthly subscription services," Russell said. "Usage of our content services grew from 19.6 million events in the first half of 2005 to 41.6 million events in the same period this yea...In the 3G business in the first six months of 2006, the contribution to monthly ARPU from non-voice services, including messaging, multimedia content and high-speed data access, grew to $19 from $16 in the half year to June 2005." The company now has an opportunity to persuade its 284,00 former CDMA customers to take up some of the non-voice offerings that were not available on the CDMA network. 2G customers averaged $3 of non-voice ARPU in recent reporting periods, compared to 3's average of $19 in the six months to December 2005. According to Russell, "There is a real opportunity in increasing usage of non-voice services by these newly upgraded customers and the process has started to educate and encourage the take-up of these services. Hutchison expects to have HSDPA available in many parts of the network by the end of the year, and across the entire network by the end of the first quarter of 2007. Initially it will enable download speeds of over 1Mbps and by year end "maximum theoretical download speeds of 14Mbps...subject to handset availability." |
Tags
| < Next story in category | Previous story in the category > |
|---|
