Form Strategic Partnership to Bring i-mode to Hong Kong and Macau Exclusively

NTT DoCoMo, Inc. and Hutchison Telecom Hong Kong, a subsidiary of Hutchison Telecom International Limited (“Hutchison Telecom”; SEHK:2332; NYSE: HTX) jointly announced today that a strategic partnership has been formed to bring i-mode™ services to Hong Kong and Macau exclusively.

DoCoMo will provide the technology, know-how and marketing expertise to the partnership, enabling Hutchison Telecom Hong Kong to offer i-mode services via its territory-wide networks. In addition, the parties have also agreed within the scope of this long-term partnership to jointly consider the application of contactless IC card technology services, widely known as wallet-phone in Japan on i-mode enabled handsets in Hong Kong and Macau.

With these revolutionary services, Hutchison Telecom Hong Kong’s customers will enjoy another exciting dimension of mobile service, including easy access to a broad variety of Internet lifestyle options, fun and convenient content as well as full e-mail capabilities.

The i-mode platform allows service providers to readily integrate their Internet content and applications for mobile i-mode usage. Since its launch, i-mode has brought more than five thousand official sites offering thousands of relevant services worldwide, to life. Additionally, there are more than one hundred thousand independent i-mode sites available in Japan, creating an entire generation of i-mode enthusiasts in the country.

Commenting on the partnership, Dennis Lui, Chief Executive Officer of Hutchison Telecom said, “We are delighted by this partnership. In addition to providing cutting-edge services for our customers, it consolidates our position as Hong Kong’s most forward-looking mobile operator, as we continue to lead innovative developments in the mobile industry and seek to shape the communications market into the future.”

NTT DoCoMo Senior Vice President, Managing Director of Multimedia Services, Takeshi Natsuno commented, “I am very pleased and excited that i-mode will be offered in Hong Kong and Macau through one of the world’s leading telecommunication companies Hutchison Telecom Hong Kong’s solid networks. We are confident that this strategic partnership will bring multiple synergies for both companies as well as other member operators. We are also proud to announce our common strategy in bringing our wallet-phone experience from Japan to the region. This new partnership will certainly drive further expansion of i-mode in the global arena.”

The i-mode service is provided on an open platform based on de facto Internet standards. This functionality has attracted numerous content and application providers, creating a vibrant and virtual market place where thousands of sites serve the mobile needs of diverse customer lifestyles.

“With its proven business model and unique service platform, i-mode creates an open gateway for content providers. They will be able to immediately tap into the vast potential of one of the largest mobile customer bases in Hong Kong supported by one of the most advanced mobile networks in the world. We will work with content providers to spearhead the next generation of mobile Internet development in Hong Kong.” Mr Lui added.

With the signing of this agreement, there will be 16 i-mode operators in 24 countries and areas around the world. In addition to DoCoMo in Japan, they include: KPN Mobile N. V. (The Netherlands), BASE N.V./S.A. (Belgium), E-plus Mobilfunk GmbH & Co. KG (Germany), Far EasTone Telecommunication Co., Ltd (Taiwan), Bouygues Telecom S. A. (France), Telefonica Moviles Espana, S. A. (Spain), Wind Telecomunicazioni SpA (Italy), COSMOTE Mobile Telecommunications S.A. (Greece), Telstra Corporation Limited (Australia), Cellcom Israel LTD. (Israel), O2 plc (UK and Ireland), Mobile TeleSystems OJSC (Russia) and StarHub Ltd. (Singapore). SMART Communications, Inc. is currently also preparing to launch the service in the Philippines.

Hutchison Telecommunications will be Australia’s first mobile operator to shift all customers to its 3G network.

The company said on Tuesday that it intends to shut down its 2G network for good on August 9 in order to focus on its 3G services. The company has already launched a campaign to have its 2G customers switch to 3G and, thus far, has brought 200,000 customers on board.

chief executive Kevin Russell told reporters on Tuesday that “with 2G market service revenue now in decline and 3G growing rapidly, our focus is absolutely in the right direction… We are very well placed to continue to strengthen our market leading position in 3G and want this position established while our competitors are still struggling to bed down their own 3G offerings and technology.”

Hutchison hopes to have more than a million customers using its 3G services by the end of June at a cost of around $145m (ВЈ59.81m) but said it expects to save about $70m a year.

While Hutchison is leading the Australian pack, the incumbent Telstra is currently working on a $1bn 3G network. Its current CDMA network is due to be shut down in 2008.

Smart Communications unveiled new and expanded 3G service offerings and announced the commercial rates for its Third Generation cellular service which is now supported by an extensive nationwide network ready for High Speed Downlink Packet Access (HSDPA) technology.

Starting May 1st, Smart postpaid and prepaid subscribers with 3G-capable handsets will enjoy enhanced applications and extensive rich media content on a commercial basis. These include live TV streaming of two major television networks and 3G downloads of full music tracks and video clips.

Smart 3G users can now make video calls not only within the country but also to 3G subscribers of eight mobile phone operators in six countries that include Japan, Hong Kong, Singapore, Taiwan, Austria and Germany.

“With 800 cellsites covering 119 key cities and municipalities, Smart offers genuine nationwide 3G coverage. We’ve made the service very affordable to encourage usage. To pave the way for continuous improvement in the service, we’ve made our 3G network HSDPA-ready” said Napoleon L. Nazareno, president and CEO, SMART.

Smart is not only the first mobile operator in the country to commercially launch 3G services but also the first to use a 3G network with HSDPA technology.

High Speed Downlink Packet Access (HSDPA) allows data calls with transfer rates exceeding one megabit per second. HSDPA will allow better quality video streaming as well as enhance user experience of Web browsing and file downloads. As Smart’s 3G cellsites are already HSDPA-ready, subscribers can enjoy the service once the devices are available in the market. Last March, Smart became the first operator in the country to successfully conduct HSDPA test calls.

When Smart 3G was launched February 14, 3G services such as video-streaming, video calls, high-speed internet browsing and downloading of special 3G content were offered on a free-trial basis.

Under the introductory pricing scheme that takes effect May 1st, Smart 3G rates are aligned with existing 2G rates while some services will remain free of charge.

:: Video calling. Smart-to-Smart local 3G video calls remain free of charge. Smart’s 3G customers can also make international video calls for the price of a regular IDD call (at US$0.40 per minute) to eight 3G operators in six countries. These include NTT DoCoMo in Japan, CSL, Smartone and Hutchison in Hong Kong, Starhub in Singapore, Chunghwa in Taiwan, Vodafone in Germany and Mobilkom in Austria – with many more being added in the coming months. Meanwhile, video calling on international roaming will remain the same as international roaming voice rates for both outbound and inbound roamers.

:: Video and audio streaming. All Smart 3G video and audio streaming applications – including live TV viewing – will be charged a P15 access fee for every 30 minutes based on running time that starts when a subscriber clicks on a streaming link regardless of the number of videos viewed. Aside from the access charge, there will be a separate fee for content. Smart 3G subscribers can watch GMA7 and ABS-CBN Channel 2 live via video streaming. Subscription fee for each network is P20 per day. 3G streaming of audio and video clips will be charged P5 per hit. However, streaming of movie trailers, live traffic and summer hotspots cameras and music videos will be free of charge.

:: Multimedia Messaging. Rates for multimedia messaging or MMS across all Smart subscribers have been set at P1 per message for Smart-to-Smart messages and P2 per MMS for Smart to other operators. Before, the rate for MMS was P5 per send.

:: Internet browsing. Internet and WAP browsing using GPRS and 3G will be at P10 for every 30 minutes, regardless of the file size downloaded. The charge applies to browsing Internet sites outside of the free Smart WAP site whether connected via GPRS or 3G.

:: Downloads. For Smart 3G content such as video clips, ringtones, visual ringers, and games, the introductory rates range from P20 for a video clip download to P50 for a full music track and a premium game. Downloading of preview clips will be free of charge.

For postpaid subscribers, all introductory 3G rates are part of their consumable plans. Corporate accounts have the option to avail of the introductory pricing or retain their current data consumption rate based on their contracts.

Smart currently has approximately a quarter of a million subscribers with 3G capable handsets.

The commercial launch of Smart 3G is a culmination of significant milestones and firsts. In December 2005, the National Telecommunications Commission (NTC) awarded SMART its 3G license after the telco garnered the only perfect score of 30 based on the regulatory body’s grading system designed to gauge the capability of operators to massively and effectively provide 3G services.

This was followed two months after by the launch of Smart 3G on free trial basis, making Smart the first telco to offer 3G to the public. In March, the company also successfully made the country’s first data test call on HSDPA, with registered data throughputs at speeds exceeding one megabit per second (Mbps).

The company started preparations for a seamless transition to 3G as early as five years ago. In December 2000, SMART in cooperation with Nokia conducted the first successful experimental 3G video call trials in the country in the presence of NTC officials.