 |  |  |
FOR IMMEDIATE RELEASE
12 JULY 2000
Hong Kong, Tokyo, The Hague, London, July 12, 2000 - Hutchison Whampoa Limited ("Hutchison"), NTT DoCoMo, Inc. ("NTT DoCoMo") and KPN Mobile N.V. ("KPN Mobile") announce the entering into arrangements for strategic co-operation regarding European third generation ("3G") mobile multimedia amongst three of the world's leading mobile operators. The co-operation is implemented by agreements covering four European markets - the UK, Germany, France and Belgium - with 210 mn customers and a projected value of 
200 bn (HK$1,482 bn) by 2010.
Rationale
The agreements extend the existing arrangements amongst Hutchison, NTT DoCoMo and KPN Mobile and position them to secure the maximum benefits from the European 3G mobile multimedia opportunity whilst preserving the flexibility of the parties to achieve their own strategic objectives.
Benefits
The agreements combined will allow each party to extend substantially its European footprint whilst sharing the costs of growing their 3G businesses. Such co-operation strengthens the ability of the parties to secure 3G licences in the target markets. It will also secure time-to-market advantages and generate significant economies of scale in product development, network procurement and construction as well as content and other supplier relationships.
European customers will derive substantial benefits through enhanced service offering and service innovation.
Key features of the agreements
UK
NTT DoCoMo will acquire a 20 per cent. stake in Hutchison 3G UK Holdings Limited ("Hutchison 3G"), KPN Mobile a 15 per cent. stake and Hutchison will retain the remaining 65 per cent. interest (including 6.5 per cent. allocated for the remaining option of Telesystem International Wireless Inc. ("TIW") to acquire shares in Hutchison 3G. Hutchison will receive 
1.2 bn (HK$14.2 bn) for the stake sold to NTT DoCoMo and 0.9 bn (HK$10.6 bn) for the stake sold to KPN Mobile (out of which approximately 50 mn (HK$591 mn) will be payable to TIW for waiving its option to acquire 3.5 per cent. of Hutchison 3G). NTT DoCoMo will appoint three directors, KPN Mobile two directors and Hutchison seven directors. (If TIW exercises its option so as to acquire at least 5 per cent. of Hutchison 3G, it will also be entitled to appoint one director and Hutchison will be entitled to appoint one additional director).
Germany
Hutchison and KPN Mobile will form a new consortium, to be named E-Plus - Hutchison, which will bid in the German Universal Mobile Telecommunications Service ("UMTS") licence auction. The auction is due to begin at the end of July. This demonstrates the parties' commitment to secure a licence.
If successful in the auction, KPN Mobile will transfer its interest in the consortium to E-Plus. The consortium will then jointly build a UMTS network complying with the licence conditions and the commercial plans of both Hutchison and E-Plus. In addition, Hutchison and E-Plus will each own separate businesses which will utilise the core network. Each separate business will develop its own intelligent platform enabling it to offer innovative services, which will compete against each other in the German market.
There will also be commercial co-operation between the new network company and E-Plus' existing 2G network so as to maximise cost savings and other efficiencies.
France
Hutchison, KPN Mobile and NTT DoCoMo have committed to work together exclusively to participate in the French UMTS licence award process. Discussions with potential key strategic French partners are underway. It is anticipated that the business will be conducted as an integrated network and operator company.
Belgium
Hutchison and KPN Mobile have also agreed to work together, through a joint bidding consortium, in the Belgian UMTS licence award process. Both business models of an integrated network and operator company and a single network company with independent operators are being considered.
The arrangements implemented by the agreements are subject to any required regulatory and corporate approvals.
Additional areas of potential co-operation
Additional areas of potential co-operation being addressed are: mobile multimedia, wireless portal, common branding across markets, joint procurement of infrastructure equipment and handsets, joint R&D projects and applications development, 3G roaming across the parties' networks and shared customer service centres.
Hutchison, NTT DoCoMo and KPN Mobile will continue to explore jointly further strategic opportunities where commercially attractive.
Strategic investment by NTT DoCoMo in KPN Mobile
NTT DoCoMo and KPN Mobile also announce today the finalisation of the terms of their strategic partnership as announced on May 9, 2000. NTT DoCoMo is acquiring a 15% equity stake in KPN Mobile for a cash consideration of approximately 4.0 bn (HK$29.6 bn), receiving 176.5 million Class A shares in KPN Mobile at a purchase price of 22.68 (HK$168) per share.
Li Ka-shing, Chairman of Hutchison, said:
"We are extremely pleased to enter into these agreements with NTT DoCoMo and KPN Mobile to further the development of our 3G business in Europe. We will work together to maximise the benefits for all parties whilst using different structures to enable each of us to pursue our individual objectives."
Dr. Keiji Tachikawa, President of NTT DoCoMo, said:
"We are truly excited by this opportunity to accelerate the deployment of mobile multimedia services in Europe. We consider the European market to be a key element in our global strategy. Europe will be next after Japan to implement UMTS and will provide an opportunity for us to leverage our technology and experience to successfully develop new 3G businesses on the global scene."
Paul Smits, President and CEO of KPN Royal Dutch Telecom, said:
"This co-operation enables us to execute an aggressive pan-European strategy for successful development of 3G applications. Teaming up with NTT DoCoMo and Hutchison will add to our strong operational presence and network capabilities and enhance scale and time-to-market advantages that are critical to succeed in the 3G field. The partnership with NTT DoCoMo enables us to launch new value-added mobile multimedia initiatives."
For information:
HUTCHISON
| Laura Cheung General Manager, Group Corporate Affairs Hutchison Whampoa Limited (852) 21281289 laurac@hwl.com.hk | Keith Bradley Commercial Director Hutchison 3G UK Limited (44) 207 499 1886 kbradley@attglobal.net | Frank de Maria Brunswick Group (44)207 404 5959 fdemaria@brunswickgroup.com |
NTT DoCoMo
| Miki Nakajima McCants Public Relations Department NTT DoCoMo (81) 3 5156 1366 press@nttdocomo.com | Yuki Isono Public Relations Department NTT DoCoMo (81) 3 5156 1366 press@nttdocomo.com | Bobby Leach/Sarah Pascoe Shandwick International (44) 207 329 0096 bleach@shandwick.com spascoe@shandwick.com |
KPN MOBILE
| Marinus Potman Head Press Office KPN Royal Dutch Telecom (31) 70 33 24 528 m.j.potman@kpn.com | Catrien van Buttingha Head of Investor Relations KPN Royal Dutch Telecom (31) 70 33 24 585 c.h.vanbuttingha@kpn.com | Mariette Westerwoudt Investor Relations KPN Mobile (31) 70 34 33 559 a.m.westerwoudt@kpn.com |
Note to Editors
Hutchison Whampoa Limited
Hutchison Whampoa is a Hong Kong-based conglomerate with origins dating back to the 1800s. With a market capitalisation in excess of US$ 60 billion, Hutchison Whampoa is one of the largest companies in Hong Kong. With over 80,000 employees worldwide, Hutchison Whampoa operates five core businesses in 24 countries: ports and related services; telecommunications and e-commerce; property and hotels; retail and manufacturing; and energy and infrastructure. Hutchison Whampoa's telecommunications businesses and holdings span several continents, and include such diverse products as mobile telephony (voice and data), fixed line services, fibre optics broadband networks, web hosting, ISP and ICP services, paging, trunked mobile radio, VSAT and radio broadcasting.
Hutchison 3G is a UK company, which was established by TIW and which secured, with the assistance of Hutchison Whampoa's commercial and financial support, the largest of the five UK UMTS licences in April 2000 with a bid of 4.4 billion. Hutchison 3G will hold the licence, build, own and operate the network and provide services to customers.
NTT DoCoMo
NTT DoCoMo is Japan's largest mobile communications company with a market capitalisation of US$279 billion. As of June 2000, the company had more than 30 million subscribers. It had consolidated sales of 3.7 trillion yen (approximately US$34.7 billion) in fiscal 1999 (year ended 31 March 2000). NTT DoCoMo was formed in July 1992 to take over the mobile communications operations and sales of Nippon Telegraph and Telephone (NTT). NTT DoCoMo provides nationwide services, including cellular, PHS phone, paging, satellite mobile communications and maritime and in-flight telephone services. The company also has subsidiaries in the United States, France and Brazil. In February 1999 NTT DoCoMo launched its "i-mode" service, which provides continuous connection with the Internet via mobile phones. The number of subscribers to the service exceeded 8 million at the end of June 2000. NTT DoCoMo plans to introduce third-generation mobile communications services based on its W-CDMA system in the spring of 2001. The UMTS services planned to be introduced in Europe will be based upon NTT DoCoMo's W-CDMA technology. The company is listed on the Tokyo Stock Exchange.
In December 1999 NTT DoCoMo acquired 19 per cent. of Hutchison Telephone Company Limited and today announced the finalisation of its 15 per cent. investment in KPN Mobile.
KPN Royal Dutch Telecom and KPN Mobile
KPN Royal Dutch Telecom ("Royal KPN") is the leading telecommunications company in the Netherlands with a market capitalisation of 48 bn. It provides the whole range of telecommunication, information, communication and technology services in the Netherlands and operates internationally under its own name or with partners. Royal KPN is pursuing growth in four core business areas: fixed telephony, mobile communications, IP/data services, Internet, call centre and media services.
Following completion of the strategic partnership with NTT DoCoMo announced today, KPN Mobile will be an 85%-owned subsidiary of Royal KPN. It was established as a separate legal entity in November 1999.
KPN Mobile is a leading European mobile telecommunications network operator and provider of mobile voice and data services. KPN Mobile is currently active in the Netherlands, Germany (E-Plus), Belgium (KPN Orange), Hungary (Pannon), Ukraine (UMC), and Indonesia (Telkomsel). The acquisition of a 77.5% interest in German operator E-Plus in February 2000 has transformed KPN Mobile into a pan-European operator with over 9 million customers. The completion of the strategic partnership with NTT DoCoMo marks a further step in KPN Mobile's strategy to become a pan-European integrated mobile voice and data operator.
| © Copyright 1996-2024 irasia.com Ltd. All rights reserved. |
|
DISCLAIMER: irasia.com Ltd makes no guarantee as to the accuracy or completeness of any
information provided on this website. Under no circumstances shall irasia.com Ltd be liable
for damages resulting from the use of the information provided on this website.
TRADEMARK & COPYRIGHT: All intellectual property rights subsisting in the contents of this website belong to irasia.com Ltd or have been lawfully licensed to irasia.com Ltd for use on this website. All rights under applicable laws are hereby reserved. Reproduction of this website in whole or in part without the express written permission of irasia.com Ltd is strictly prohibited. TERMS OF USE: Please read the Terms of Use governing the use of our website. |