UK 3G users prove rich pickings

The annual financial results of Hutchinson Whampoa, which runs the 3 mobile network, show that the British are among the operator's most profitable customers.

Average annual revenue per user in the UK was £40.30 in 2004. Only the Austrians spent more, racking up the equivalent of £42.81.

Subscriber numbers are also continuing to grow. 3 now has over three million customers in Britain, and its customer acquisition cost, made up of handset subsidies and promotional expenses, is falling as the market develops.

"Despite new competition as incumbents launch 3G services, unit customer acquisition cost is expected to continue to decline in 2005," said the report.

"Unit customer acquisition cost in the last half of 2004 averaged €271 compared to the seven-month average of €299 announced with the interim results.

"The principal factor in the decline is rapidly dropping average handset prices, reflecting increases in both the number of suppliers offering quality products and the range of product specifications and price points."

UK users are also fast adopters of data services, with an average of 20 per cent of average annual revenue per user coming from non-voice services. Ringtones and video footage seem to be the most popular applications.