Released on = December 2, 2005, 5:52 am

Press Release Author = Visiongain

Industry = Telecommunications

Press Release Summary = SAN FRANCISCO & LONDON--(BUSINESS WIRE)--Dec. 1, 2005--3G
pioneer Hutchison 3G (H3G) needs to concentrate on promoting 3G data services at the
expense of low-cost voice calls, or risk continuing the losses accrued by some of
its operations. That is the opinion of the latest study, \"Hutchison\'s 3: Market
dynamics and opportunities for growth\" published by industry research company
visiongain.


Press Release Body = The study also found that H3G\'s subscriber figure would slow in
growth due to less aggressive customer acquisition techniques, reaching 12.3 million
by 2007. Growth had been dramatic through 2004-2005 due to the strategy of offering
low-cost voice calls and heavily subsidised tariffs, but to turn subscriber figures
into a lucrative data service usage must increase.

\"The next 18 months are critical for the success of H3G,\" comments report author
Adam Walkden. \"It has done well to achieve 10 million subscribers in a relatively
short period of time, but the downside of this is that H3G are recognised more for
low cost pricing than 3G services. The challenge now involves being less aggressive
in pricing strategy whilst increasing data usage.\"

H3G has operations in the UK, Italy, Sweden, Denmark, Austria, Ireland, Australia
and Hong Kong. However, whilst the Italian operation has broken even and is listed
for IPO in early 2006, the only other operation to be nearing break-even is in the
UK. As a result, the strategy of moving from aggressive voice pricing to pushing
data services is needed to improve revenues in the business. H3G has slowly begun
doing this, as reflected in its recent advertising campaign highlighting its
multimedia services, such as music and TV.

This latest report from visiongain analyses Hutchison Whampoa\'s 3G operations by
financial performance and positioning in markets of operation. It also evaluates the
evolution of H3G\'s strategy, including services, pricing, partnerships and likely
future scenarios, presenting forecasts until 2010.

Notes for Editors

If you are interested in a more detailed overview of this report, please send an
e-mail to sara.peerun@visiongain.com or phone Sara on 020 8767 6711 or see
www.visiongainintelligence.com/reportDetail.aspx?reportId

Web Site = http://www.visiongain.com

Contact Details = Sara Peerun

Visiongain
40 Tooting High St
London SW17 0RG
UK

Tel: +44 (0)20 8767 6711
Fax: +44 (0)20 8767 5001
email: sara.peerun@visiongain.com