3G starts to pay for 3... gee

Hutchison Whampoa has announced figures for its 3G mobile operations around the world, showing not just subscriber growth but decent average revenues per user (ARPU).

In the week where the company passed the one million users mark in the UK - a symbolic milestone but also one that was over half a year later than it predicted - it has revealed non-voice revenues ranging between nine and 22 per cent across its different operations.

Non-voice is important for 3's networks because it means a lot more than SMS - the company has sold itself on video messaging and content and there have been sceptics saying they will never catch on, at least not to the extent Hutchison needs to avoid a business disaster.

While the 22 per cent non-voice figure comes from the company's home market, Hong Kong, where it counts only 124,504 users and 3G coverage of 99 per cent, in the UK non-voice revenue stood at 14 per cent.

However, the UK boasts 64 contracts for every 36 prepaid users and an impressive ARPU of £43.22.

Analysts had predicted discounting voice calls would do little more than reduce margins across the industry but it seems winning users has been the first step to ensuring the take up of other services.

One analyst, surprised by interim figures, said: "The figure's remarkably high."

A 3 spokeswoman said: "We offer video and content services on top of voice services. While initial tariffs might be low, these take a user beyond a psychological level [they previously may not have wanted to commit to spending each month]."

Other operators have spoken about ARPUs of around €50 per month on given GPRS-based phones as among their highest.

Hutchison has reported 3 Group losses for the first six months of 2004 "within planning expectations for the year" and showing "progress made building these businesses".

3 networks are now up and running in Australia, Austria, Hong Kong, Italy, Sweden, Denmark and the UK.