Feeds

Hutchison 3G UK taps shareholders for £1bn loan

What a difference a delay makes

  • alert
  • submit to reddit

Top three mobile application threats

Hutchison 3G is to start dishing out handsets in Italy on March 10 and in the UK on March 15. It says it will have 700,000 available within three months.

Which means that the revenues will start coming in very soon. But how much revenue? Hutchison is gunning one million subscribers apiece in the UK and Italy by year's end, two very ambitious targets for the greenfield 3G network.

And money is tight, with cashflow assumptions
torpedoed by delays in launching the 3G phone network -

So H3G UK has gone cap-in-hand to its three biggest shareholders for a loan of £1 billion.

The biggest shareholders are parent company Hutchison, Royal KPN and NTT DoCoMo. It's a given that Hutchison will stump up its share of the money - £650 million; it's a possible that NTT DoCoMo will cough up; but KPN is more problematic. The Dutch company last year said it wanted to sell its 15 per cent stake in Hutchison 3G. NTT and KPN say they will announce their responses to the cash call by mid-April, Bloomberg reports.

Hutchison 3G owes its banks £1 billion, drawn from a £2 billion credit line arranged in 2001. Payment is due in March 2004, but Hutchison 3G is seeking a one-year extension. According the Hong Kong Economic Times (paraphrased by Bloomberg), creditors "asked Hutchison 3G UK to increase its capital because the company failed to meet financial targets required by lenders".

The £1 billion shareholder loan will ensure that H3G remains fully-funded, the company says. ®

Combat fraud and increase customer satisfaction

More from The Register

next story
Virgin Media so, so SORRY for turning spam fire-hose on its punters
Hundreds of emails flood inboxes thanks to gaffe
A black box for your SUITCASE: Now your lost luggage can phone home – quite literally
Breakfast in London, lunch in NYC, and your clothes in Peru
AT&T threatens to pull out of FCC wireless auctions over purchase limits
Company wants ability to buy more spectrum space in auction
Turnbull leaves Australia's broadband blackspots in the dark
New Statement of Expectations to NBN Co offers get-out clauses for blackspot builds
Facebook claims 100 MEEELLION active users in India
Who needs China when you've got the next billion in your sights?
Facebook splats in-app chat, whacks brats into crack yakety-yak app
Jibber-jabbering addicts turfed out just as Zuck warned
Google looks to LTE and Wi-Fi to help it lube YouTube tubes
Bandwidth hogger needs tube embiggenment if it's to succeed
prev story

Whitepapers

Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.