Loss-making Sunday Communications plans to spend HK$130 million this year ahead of a possible launch of third-generation (3G) services next year. Group managing director Bruce Hicks said the company spent HK$130 million last year and would spend a similar amount this year to improve its 2.5G network coverage, customer services and data services. 'Instead of competing on price, we would rather compete on service quality,' he said. Hong Kong's smallest mobile operator reported an interim loss last year of HK$66.4 million. The company will announce full-year results next month. Sunday reported last June that it had average revenue per user (arpu) of HK$210, with less than 5 per cent of that amount coming from data services. Mr Hicks declined to update the arpu figures ahead of the results announcement but said: 'Arpu is slowly creeping up.' He said Sunday's subscriber churn rate rose 1 per cent last year because of fierce market competition. To encourage subscribers to switch carriers, Hong Kong's six mobile operators have been waiving the HK$100 charged to change operators and a related HK$40 handling fee. Sunday has a subscriber base of 570,000. The company on Monday launched a new promotion to attract subscribers. New customers will be entered into a lucky draw with prizes including a motorcycle, holiday packages, free yoga classes and laser hair removal. Meanwhile, Sunday hopes to launch 3G services next year, but only if the market is ready. 'There is no strict time line on it but I believe the market will be ready next year. We will make a decision by the end of the year regarding 3G services,' Mr Hicks said. Sunday planned to invest HK$1.3 billion in 3G services, but the actual amount could be less because of the fall in equipment costs, he said.
