Hutchison to buy 3 m phones from LG

MILAN: Hutchison Whampoa Ltd has agreed to buy three million video-capable mobile phones from South Korea's LG Electronics Inc., the Hong Kong conglomerate's Italian mobile unit said.

Details on the value of the deal for the high-speed third-generation (3G) network handsets were not disclosed in the statement issued in Milan.

But South Korea's Maeil Business newspaper this week said Hutchison was in talks with LG, a home appliance maker, to buy $1 billion worth of handsets.

The announcement came a day after Britain's Vodafone Group Plc began commercial 3G services in Germany and Portugal, a big step forward in the long-delayed rollout of the technology in Europe.

"The global agreement forsees the supply of three million video phones by the end of 2004 to all the 3G companies of the Hutchison Whampoa group," the statement said. Hutchison launched its 3G services in Italy and Britain last year and, after being hampered with problems in the supply of handsets, it is now operating 3G in several countries around the world.

In its statement on Wednesday the Italian unit said LG's U8110 phone was available for sale immediately with prices starting at 199 euros ($241.5).

Hutchison Whampoa also has supply agreements with Motorola and NEC Corp.

© Reuters