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SCMP Reporter

NEW Hutchison Telecom UK boss Mr Hans Snook has denied that the firm will sell any of its British businesses or reduce investment.

  Mr Snook said the company would invest between GBP550 million (about HK$6.055 billion) and GBP600 million, in addition to the GBP300 million already spent, to establish its British telecommunications businesses.

  Mr Snook, former managing director of Hutchison Paging in Hongkong, was appointed group operations director of Hutchison Telecom worldwide and managing director of Hutchison UK.

  He took over from Mr David Steadman, who unexpectedly quit just before Christmas. Mr Steadman had spearheaded Hutchison's drive into the British telecommunications market since 1989.

  Mr Steadman's spending spree, which totalled GBP300 million, made Hutchison the largest overseas investor in the liberalised British telecoms market.

  Analysts said that it might also have cost him his job.

 ''Steadman was a man who had an ambitious dream,'' said Mr Dean Eyers, an industry analyst at market research company Dataquest.

  ''He wanted to make Hutchison a major player in UK telecoms across the board and he believed that he had the company behind him.''   Speculation has been growing that Hutchison may withdraw from some of its British ventures, where returns have so far been modest.

  Hutchison's telepoint service has not met sales targets, the launch of Hutchison Microtel's state-of-the-art personal communication network (PCN) has been delayed until 1994, and Hutchison Mobile Data has no commercial users.

  Hutchison is the only company that is active in telepoint, cellular service provision and PCN.

  PCNs, which are designed to bring low-cost pocket radio telephones to the mass market, offer the highest revenue potential, according to the company.

  But development costs are high and PCN competition is expected to be fierce.

  Hutchison faces three entrenched rivals: British Telecommunications' Cellnet, Mercury Personal Communications, which is 50 per owned by Cable & Wireless, and Vodafone.

  Meanwhile, Hutchison's telepoint service, which allows users to make outgoing calls from lightweight phones, has so far attracted 7,500 users - short of the 50,000 target set when the service was launched in June, 1992.

  Telepoint is itself facing competition from cellular phones, where Hutchison is also active. In turn cellular will face competition from PCN.

  Hutchison Whampoa chairman Mr Li Ka-shing has decided to focus Hutchison's future international telecommunications drive on China, where he sees the greatest opportunities.

  ''We had to make a decision that we do not have the resources or manpower to do everything,'' Mr Snook said.

  ''We will stay in the markets in which we now operate, but we will not be seeking new licences in countries other than China.''   Despite these assurances, Hutchison has sold its 70 per cent shareholding of Hutchison Mobile Data in Hongkong.

  Since Mr Steadman's departure there have been two reorganisations.

  First, PCN was merged with cellular, and paging with mobile data.

  Speculation grew that the fifth unit, telepoint, might be the subject of a management buyout, but telepoint has since been merged with PCN and cellular, forming a company-wide voice communications group, to operate alongside a newly-created data communications group, comprising mobile data and paging.

    Mr Li has promoted Mr Malcolm Way as head of voice communications, and Mr Michael Bowerman to manage the data arm.

  Mr Snook said that the restructuring was necessary to consolidate acquisitions ''that have been made in a piecemeal way''.

  Hutchison's succession of acquisitions, all on undisclosed terms, began with cellular service provider Quadrant in December, 1989, followed by Nokia's service provision arm in April, 1990, paging operator Millicom Information Services in January, 1991, Telepoint operator Byps in February, 1991, and Millicom Cellular in March, 1991.



Hutchison to maintain its investment in UK