HK Sunday Says Ready To Launch 3G In 2Q This Year

HONG KONG (Dow Jones)--Sunday Communications Ltd. (SDAY) said Wednesday it is ready to launch its third-generation mobile telecommunication service in the second quarter of this year, the last of four Hong Kong 3G license holders to start offering the service.

"2004 was all about getting ready for 3G," said Group Managing Director Bruce Hicks.

He said the timing of Sunday's 3G launch is "appropriate," as it will be supported by increased handset availability over the course of this year and as the 3G market and network mature.

Most of all, he said he believes there will be demand for the high-speed service, rather than having to "forcefeed" through promotions or cheap handset deals.

In 2004, Sunday spent HK$252 million on building its 3G network.

As a result of the 3G buildup, the company reported a net profit decline of 80% to HK$5.5 million in 2004 from HK$27.2 million in 2003.

Hong Kong has four 3G licensees. Hutchison Whampoa Ltd. (0013.HK) was the first to launch the service in Hong Kong in early 2004, followed by SmarTone Telecommunications Holdings (0315.HK) and CSL, owned by Australia's Telstra Corp. (TLS).

Sunday said that by the first quarter of 2006, its network will be ready to offer high-speed downlink packet access technology, a 3G upgrade that offers faster download speeds.

-By Julie Wang, Dow Jones Newswires; 852-2802-7002; julie.wang@dowjones.com

-Edited by David Riordan

(END) Dow Jones Newswires "

Posted to the site on 30th March 2005