Never-say-die Hutch investing $ 65 m for 3G push

Hutch Lanka is investing US$ 65 million to upgrade and expand its services in the coming year says a top official, with plans to become the latest entrant into the 3G sphere.

Hutchison Telecommunications Lanka better known as Hutch launched in 2004 and to date has maintained a consistent but largely unaggressive presence in the local industry. However, this is about to change, according to Hutch Chief Operating Officer Anand Prakash, who told Daily FT that the company was planning to wow consumers with a diverse and efficient 3G package next year.

To this end the company is investing US$ 65 million to include 3G in its service portfolio and expand the existing 2G network as well. Given its subdued presence, the natural question to ask is ‘why now?’

“We are very positive about post-war Sri Lanka. The economy is booming, there is political stability and there is a great deal of optimism among the people. We want to tap into that. This is a pro-business Government and we have a very supportive regulator,” he explained, commending the Telecommunications Regulatory Commission (TRC) for supporting the industry.

In order to take advantage of this positive environment, Hutch will become the last mobile operator to enter the 3G market. Despite operating in a very competitive market, Prakash is confident that he can offer a value proposition that people will not be able to resist.

“Even though 3G has already been offered by several operators promising faster data speed, I do not think that those promises have been fulfilled. Since my 3G network is new, there is no crowding out and users will not find their speeds getting less because more people are using the service. We are also planning to have countrywide coverage so that even people in the rural areas will have full access. Thirdly, we are also expanding our 2G network.”

Unique and innovative products that cater to small and large screen devices have been planned by the company, which include laptop dongles – a first for Hutch. “We are going to make our customers very happy. We want to grow business,” insisted an enthusiastic Prakash, pointing out that larger reach and uninterrupted service would be key attractions for users.

The company hopes to complete its 3G infrastructure and 2G expansions by April 2012 and grow to absorb 6%-7% of the 3G customer base. Since there is only 6% internet penetration in Sri Lanka, Prakash is confident that there is immense scope for growth and he is determined to achieve it.