The result followed confirmation by Hi3G, Hutchison's Swedish mobile venture, that its losses increased 147 per cent last year to 131 million Swedish crowns (HK$124.8 million).

While both countries constitute relatively small outposts in Hutchison's global 3G empire, to which the company is committing a total of US$16.7 billion, they have raised concerns that charges from its new generation networks could hurt the conglomerate's bottom line. Hutchison reports interim results on August 21.

To date, Hutchison has rolled out 3G operations in five of its nine mobile markets.

In March, Hutchison executives told analysts that their 3G operating losses for Hutchison this year could be contained within US$1 billion.

'It is likely that Hutchison can contain [its 3G losses] this year, but going forward is still a question mark,' said an analyst at one European brokerage.

ABN Amro analyst John Godfray said: 'It is too early to draw any big conclusion because [HTA's 3G operation] is just a start-up business.'

Earlier this year Hutchison rolled out 3G services in Britain and Italy, with very different results. The company signed up more than 100,000 Italian users in less than three months, but had to slash prices in Britain where it had recruited only 25,000 subscribers by the end of May.

HTA, 58 per cent held by Hutchison, has been struggling to build a meaningful subscriber base and return to profitability.

Since 1999, when it was last profitable, the company has reported losses totalling A$555 million (HK$2.77 billion).

As of June its subscriber base had grown 16 per cent to 278,000 customers - still far behind market leader Telstra, which has seven million users.

However, HTA chief executive Kevin Russell expressed satisfaction with the company's 3G subscriber base.

'We are on track to pass 50,000 [3G] customers within the next two weeks.

'We are focusing on strengthening our services and product offering and expanding our distribution reach in the run-up to Christmas,' Mr Russell said.

HTA's first-half operating expenditure grew to A$190 million as the company launched new businesses in Sydney and Melbourne.

Last month it expanded its operations to Brisbane, Adelaide and Perth.

Despite raising bank debt totalling A$200 million in the first half, HTA is also turning to its parent for further funding.

Hutchison is scheduled to commit A$600 million to its Australian operation by the end of this year as part of a A$3 billion funding obligation.

Shares of HTA fell 2.7 per cent to 36 Australian cents, giving the company a market capitalisation of A$244 million.

According to its annual report, Hutchison and partner Investor AB committed 2.72 billion crowns (HK$2.59 billion) to their Swedish joint venture last year.