Industry Analysis Case Study

Hutchison's Gamble in the European 3G Cellular Market

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Abstract:
Since the beginning of the 21st century, the European telecom companies had invested $250 billion in licence fees and infrastructural development to offer 3G (third generation) cellular services. They were betting on a technology that had not been developed to an extent where the operators could provide full-fledged 3G services to their customers. Consequently, most of these companies got into huge debts and write offs. Under such circumstances, Hutch started its 3G services in Europe.

Pedagogical Objectives:

• To discuss the factors which prompted Hutch to make huge investments in the 3G service in Europe and what is at stake for its first commercial 3G service in the continent.

Keywords : Hutchinson Whampoa Limited; Third generation (3G) cellular services; European telecommunication industry; Mobile telephony in Europe; NTT DoCoMo; Generations of mobile telephony; 3G mobile telephony in Europe; Telecommunication license fees in Europe; Losses of European telecom companies; Hutchinson's telecom services in Europe; Corporate Strategies Case Study; Telecom tariff war in Europe