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Telecommunications industry

Hutchison Telecom Launches Orange Mobile Service in the UK

Strategic Insights

— 1 min read

Hutchison Telecom, a telecommunications company owned by Hutchison Whampoa of Hong Kong, has launched a new mobile telephone service in the UK, called Orange. The digital service has a capacity of up to six million customers and will initially cover 50% of Britain, with plans to increase coverage to over 90% by mid-1995. Orange will run on Nokia Microtel and Motorola MR 1 mobile phones, and is expected to be cheaper than its competitors, with call charges as low as 14 pence (approximately $0.21) per minute.

Key Takeaways:

  • The Orange mobile service has a capacity of up to six million customers and will initially cover 50% of Britain.
  • Orange plans to increase coverage to over 90% of Britain by mid-1995.
  • The service will be cheaper than its competitors, with potential savings of up to 50% on short calls.
  • Customers will pay only for the seconds they use, rather than being charged by the minute or 30 seconds.
  • The monthly rental charge includes talk time from 15 minutes to 9 hours, depending on the chosen price plan.
  • The system of price plans is designed to be cost-effective and tailored to the needs of the user.
  • Hutchison Telecom will charge a one-off connection fee of 30 pounds (approximately $45).
  • Customers will receive 12 months insurance against theft or accidental damage at no extra cost as part of an introductory offer.

Statistics:

  • Up to 6 million customers will be able to join the Orange mobile service.
  • 50% of Britain will be initially covered by the Orange service.
  • Coverage is expected to increase to over 90% of Britain by mid-1995.
  • Call charges can be as low as 14 pence (approximately $0.21) per minute.
  • The monthly rental charge includes talk time from 15 minutes to 9 hours.
  • Hutchison Telecom is 65% owned by Hutchison Whampoa of Hong Kong.
  • British Aerospace holds a 30% stake in Hutchison Telecom, while Barclays Bank holds a 5% stake.

Sources:

  • Hutchison Telecom, "Hutchison Telecom Launches Orange Mobile Service in the UK," LONDON, April 27.

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