Virgin is in advanced talks with 3G license winners in Hong Kong with hopes to set up a mobile virtual network operator (MVNO) service. The company has had discussions with two of the four operators in Hong Kong, Hutchison Whampoa, SmarTone, Sunday and Hong Kong CSL, over sharing their spectrum and network infrastructure.
The MVNO service would be launched over the operators’ existing 2G networks. Virgin and its partner would then investigate the 3G resales market. The 2G service is set to launch some time in Q3 2002, whilst the 3G services should be available in 2003.
According to Hong Kong regulation, operators must give MVNOs access to 30% of their network. Adding a carrot to the stick, whichever operator takes on the contract is expected to receive 30% of the profits.