Owners pump millions into Danish mobile telecompany "3"  

2003.01.21
Danish mobile telecompany "3" gets a DKK 395 million cash injection from its owners, Hutchison Whampoa and Investor

The Danish mobile telecompany "3" (formerly known as Hi3G) has received a massive DKK 395 million (USD 55 million) cash injection from its owners, the Hong Kong based conglomerate Hutchison Whampoa and Sweden's Investor. The effect of the owners' move is to shift the scenario from a debt situation to company shares. 3's MD Christian Jørgensen is reported by Computerworld as saying that the cash is earmarked for licence fee use and other things besides, but declines to give further details.

 

Along with the other mobile telecompanies that bought a UMTS licence in the government's 2001 auction, 3 has a DKK 948 million (USD 133 million) licence fee to pay. Not to mention the cost of establishing a new mobile net, previously estimated by analysts at around DKK 3 billion (USD 420 million). Analysts are baffled as to why a fifth company should want to enter the Danish mobile market with its own net, without having a single customer, when there seems to be scarcely enough customers around for the four existing mobile telecompanies. The future will no doubt bring clarification.

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