Hutchison 3G offers discounted voice services

Hutchison 3G UK has introduced two price packages to undercut voice service offers from rival operators in the hope of...

Hutchison 3G UK has introduced two price packages to undercut voice service offers from rival operators in the hope of kick-starting sluggish sales of its mobile broadband service.

From today (Monday), UK customers can choose between two tariff bundles with 500 minutes and 750 minutes of voice calls to any network at any time for £25 and £35 per month respectively.

The packages will also include a £10 and £20 per month discount scheme for video calls, messages and clips transmitted over the operator's 3G mobile broadband network. The discounts are valid for the first three months.

Both packages allow customers to send and read e-mail and view selected online content for free until the end of August.

Although 3, which is controlled by Hong Kong heavyweight Hutchison Whampoa, is the first to provide 3G service in the UK, the operator has struggled to penetrate the country's fiercely competitive mobile phone market.

Whether the new tariffs will help is questionable.

"Quite honestly, I view the new fees as a joke," said Bena Roberts, an analyst with Current Analysis. "Here is a 3G operator promoting bulk voice instead of new mobile broadband services. The move shows how desperate the company is to generate traffic over its network."

What new 3G operators need to show, according to Roberts , is how customers can benefit from high-speed mobile services and not from discounted voice minutes. Apart from sending the wrong signal to the market, the discounts will do little to improve the company's bottom line. "Hutchison needs to go down the 3G road and prove what they can really do," she added.

Vodafone, T-Mobile UK and Orange have chosen to delay commercial 3G service until they have resolved all major technical issues and have sufficient handsets. 

John Blau writes for IDG News Service

Read more on IT strategy