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Hutchison starts 3G mobile sales in Sweden

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Despite market scepticism, Hutchison Whampoa on Monday began signing up third-generation (3G) mobile subscribers in Sweden.

Hutchison's 60 per cent owned HI3G Access is offering handset discounts between 31 per cent and 39 per cent for subscribers who sign up before June 10.

The cost of the handsets, selling for between 3,500 kroner (about HK$3,377) and 5,695 kroner, will be rebated in two years.

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The joint venture with Swedish Investors will offer high-speed services under the '3' trademark.

'We are the first to provide mobile video communications, and others will follow us,' HI3G Access chief executive Chris Bannister said.

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He was speaking after an executive of Sweden's second-largest mobile operator painted a bearish picture for the 3G business, saying that it was not likely to become profitable until 2010.

'How 3 will succeed in making customers change operators and quickly reach profitability, I don't understand,' Tele2 chief executive, Johan Jarnheimer, was quoted as saying in a Swedish newspaper.

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