Hutchison 3G Pricing Speculation

How do you entice people to switch to a new mobile operator in a well established market? Cutthroat pricing is an often used strategy and what Hutchison is likely to use when it launches its 3G networks Europe later this year. While the company has yet to confirm any plans, it is thought they will offer a simple single rate for all voice calls made on their network rather than different tariffs based on when you call. Given H3G’s focus on data, this plan could make sense. Discount voice service to lure subscribers. Once you got them on your network upsell them to high margin data services. It could work, except that with handset prices rumored to be starting at $750, even free calls might be a tough sell.

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