5G for $388 from April

Three HK, the mobile telecom arm of Hutchison Telecommunications Hong Kong (0215), will roll out 5G monthly service plans in April starting at a monthly rate of HK$388 for 100GB of data allowance, making it the first local telco to launch 5G service packages.

Kenny Koo, executive director and chief executive of Hutchison Telecommunications, said clients can opt to register for a regular service plan, with monthly rates at 100GB/HK$388 and 200GB/HK$688, or installment plans that come with a smartphone, priced at 100GB/HK$638 and 200GB/HK$938 monthly.

He expects 5G coverage to be expanded to all districts, adding that 5G services are cheaper than 4G services that were launched eight years ago.

Koo believes the launch of 5G will push up the company's average revenue per user when 5G is widely adopted in a few years.

He expects the company's capital expenditure to reach HK$500 to 600 million this year, including 5G investment.

Koo pointed out that he has not seen a price war among 5G service providers. He said in December that the operator's charges are based on the costs of spectrum auction and construction, and the overall costs of 5G development amount to only about 20 percent of that of 4G.

Hutchison Telecommunications estimates that more than 20 5G mobile phone models will hit the local market this year.

China's three state-run telecoms operators - China Mobile, China Telecom (0728) and China Unicom - rolled out 5G service plans in November, which start from 128 yuan (HK$143.66) a month.