Sunday Communications (SDAY) has increased its 3G supply contract and expanded and improved its financing facilities with Shenzhen-based Huawei Technologies (Huawei), hoping to ensure a smooth launch of its 3G service in 2005.
The value of the Supply Contract has increased by HK$349 million, from HK$859 million to HK1,208 million. The
agreement is supported by a corresponding increase in the financing package with Huawei, together with an extension of the repayment terms on the general financing facility that forms part of the financing.
"This is excellent news for Sunday," said Sunday's Group Managing Director Bruce Hicks. "The expansion of our supply contract and improvement in the financing terms demonstrates the confidence both SUNDAY and Huawei have
in our 3G multimedia future. Our original agreement was flexible and allowed for such changes in the contract to respond to market conditions as they develop. We have followed the right strategy by not launching 3G before the
market is truly ready, which has also allowed us and Huawei to learn from the recent roll out of 3G services around the world. As a result, we have agreed to purchase additional equipment. This will give us extra capacity and ensure
that when we launch 3G, we will provide the quality and creativity of service that our subscribers have come to expect from SUNDAY. The new terms demonstrate how well we and Huawei are working together to ensure SUNDAY 3G sets the standard for the new era in mobile communications in Hong Kong."
Under the Supply Contract, Huawei will design, construct, manufacture, sell, supply and deliver equipment and services for the establishment, installation, implementation and commissioning of SUNDAY's 3G network on a