3G price war causes share slides

9 Jun 2003

Shares in mmO2, Orange and Vodafone dipped heavily at the close of trading in London on Friday. The disappointing performance comes shortly after Hutchison 3G announced that it will be drastically cutting prices in order to attract customers from its rivals. Hutchison launched its 3G network in March – after paying what many analysts consider to be an overpriced operating licence fee – but sales have been well below anticipated levels. The new packages, VideoTalk 500 and VideoTalk 750, are aimed principally at users of traditional voice services and undercut competitor’s rates by up to 50%, although customers will still have to cover the costs of expensive handsets.

United Kingdom