SmarTone-Vodafone kicks off iPhone availability with party

HONG KONG – SmarTone-Vodafone kicked off its iPhone launch late last week at New Town Plaza in Hong Kong, with a party that included live performances from popular artists and the familiar lineup of Apple Inc. customers waiting to get their hands on the new Apple 3GS and iPhone 3G devices.
Apple’s initial strategy of launching the product with one operator is waning as the handset manufacturer expands its business. Competitor 3 was the first Hong Kong operator to carry the iPhone. However, a SmarTone-Vodafone executive noted about 30,000 unlocked devices already ran on the operator’s HSPA network before the official Jan. 23 launch.
“We are delighted to bring iPhone to our customers in Hong Kong,” Douglas Li, CEO of SmarTone-Vodafone, said in a prepared statement. “They will enjoy an exceptional experience with iPhone on our powerful network, as well as easy access to our many exclusive services.”
Li seemed to enjoy lingering with customers in the store and was trying to visit as many of the company’s 37 retail outlets during the launch. The charismatic CEO is regarded as a product visionary and one of the most effective mobile network operators in the Asia-Pacific region. He founded SmarTone-Vodafone in 1992 and led its expansion until 1996. He left the company to pursue other interests but returned in 2001, and has been leading the company since then.
SmarTone’s Apple devices come with traditional applications from the Apple application storefront, but also come preloaded with SmarTone’s own Web portal, which enables customers essentially to be able to access another app store, where they can watch movies and view other content. SmarTone-Vodafone said it is offering exclusive services, “including access to 26 channels of live TV and on-demand videos, as well as the option to enjoy more videos online than any other Hong Kong network.” The operator also said it would offer free hands-on workshops to help its customers get the most from the devices. SmarTone-Vodafone customers have not shied away from paying for mobile content. Li said the top three subscription services are news; mobile TV; and Internet access from the device. SmarTone-Vodafone’s Web access enables users to view more videos on more websites and has on-the-fly detection of RSS feeds and podcast content, which users can access with one click.
Along with the new devices, SmarTone-Vodafone introduced new pricing plans for iPhone customers. All of the plans come with data bundles and capped data charges. Further, plans also include free Wi-Fi service and a free subscription to either E! Entertainment News or the Cantonese language gossip channel 娛樂台。
Pricing plans start at around $18 per month for 1,400 voice minutes and 100 megabytes of data; tilting up to nearly $32 per month for 2,100 voice minutes and 500 MB of data. On both of these plans, the data pricing increases approximately $1.29 per month for 5 MB of additional data usage, with a cap of around $38 per month. The operator is offering a premium plan for around $51 per month that includes 3,900 voice minutes and unlimited data usage. SmarTone-Vodafone is pricing messaging separately. All pricing plans require a two-year contract.
The 8 GB iPhone 3 handset is free for customers who sign up for the two higher-priced monthly plans and $373 for people who sign up for the low-end plan. The newer iPhone 3GS with 16 GB of memory is $473 for low-end users; $152 for mid-range price plans and free for people who sign up for the high-end price plan. The 32 GB version of the device is priced at $576 for people on the low-end plan; $255 for those on the mid-level plan and $100 for high-end plan subscribers.
Despite the long lines of customers ready to buy the iconic devices and accompanying service plans, the activation process went smoothly, with an average activation time of less than four minutes. SmarTone-Vodafone also provided entertainment to mark the launch, including Stephy Tang and Alex Fong, together with Kary Ng, Terence Siufay and at17.
Hong Kong is a competitive market with five operators and penetration rates exceeding 100%. Indeed, in anticipation of the SmarTone-Vodafone launch, rival PCCW introduced new pricing for its smartphone users. PCCW operates a UMTS-based network while SmarTone has deployed a faster HSPA-based network that is 28.8 megabits per second-ready. SmarTone-Vodafone licenses the Vodafone brand, but Vodafone does not have a stake in the operator. Other operators in the country are CSL, which is owned by property developer New World Development and Telstra; Hutchison-owned 3, and a China Mobile subsidiary.