Subscriptions to 3G services are expected to fall well short of Hutchison 3G's targets when they are released later this month.
The subscriber numbers of Hutchison 3G's 3, the UK's first third-generation high-speed mobile phone service, will be revealed on 21 August when parent Hutchison Whampoa announces its financial report. But according to The Business, city analysts estimate the company has signed up fewer than 100,000 customers, which will leave it struggling to achieve its end of year target of one million subscribers.
Additionally, the majority of 3's video mobile customers are not the high-spending business users it expected, which means the company will take longer than promised to deliver a financial return on its £10bn investment, according to the report.
When 3 launched in March, its handsets were retailing at £200 and subscriptions cost between £60 and £100 per month. But with pressure from Vodafone's popular photo-messaging Live service -- which has already signed up two million customers -- it began offering free handsets and a £25 monthly tariff that includes 500 minutes of free talk time.
Unless subscription rates pick up, Hutchison is expected to sign up around 400,000 users by Christmas, which is less than half of its initial target. 3 will have to compete with 2G and 2.5G services from other operators, which have already made a splash with consumers via photo-messaging, colour screens and Web browsing.
European mobile operators slammed 3G phones at the 2003 UMTS (Universal Mobile Telecommunications System) Congress in Holland last June, claiming they were "unfit for the mass market". The handsets were criticised for being too big, expensive and not having long enough battery life.
Talkback
I got one...it is vgood. But the problem is that the NEC 606 needs a head set for you to hear the caller when in video mode. Most people dont carry a head set around with them. So when a call comes in they miss it or pick up the phone an say I see you but carnt here you. So what is the point of that. The NEC does have a externat speaker which is used for the play back of video clips - so why does it not work when makeing a video call.
Because of this it is unusable as a mobile solution. In order for me not to waist money by having a contract for a year at 35ppp I have set it up as an office video phone allways connected to the head set and never take it out of the office.
Sad really such a simple sort full makes it unusable for mobile. I did think of using it as a car phone, but I think that video calls when driveing sould have the same sentance as D and D.
I've recently got myself a 3g phone and i thinks its great. despite its rather large size, you must not forget that its also a digital camera, mp3 player and an e.mail sending machine all rolled into one. there is certainly room for improvement. there are a few design faults that need to be looked into but i am very happy with my latest purchase
Can you tell me if Video phones are selling in Mexico? Is there a market there? What about video pay phones?