SmarTone Telecommunications Holdings, which is due to launch its third-generation (3G) cellular service this month, pulled an unlikely ace from its sleeve on Wednesday - an exclusive network alliance with the world's largest mobile phone operator, Vodafone Group.
The partnership was unveiled as rival Hutchison Whampoa reported a whopping 81 per cent increase in its 3 Group subscribers worldwide, from 3.2 million in August to 5.9 million this month, aided by the release of new handset models and content services in seven markets.
SmarTone's deal with Vodafone is expected to help the Sun Hung Kai Properties-backed mobile operator mount a strong challenge to Hutchison's 3 when it launches its own 3G service.
Vodafone introduced mass-market 3G services in Europe about nine months after Hutchison's 3 rolled out across the continent.
The new partnership with SmarTone allows Vodafone to compete directly in its global rival's home turf of Hong Kong.
'We expect competition to heat up in Hong Kong's 3G market, as other operators launch their services this month and early next year,' said Jeffrey Tan, an analyst at Credit Suisse First Boston.