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SmarTone Telecommunications Holdings said Wednesday it will launch third-generation mobile phone multimedia services in Hong Kong in the second half of this year.

SmarTone Chief Executive Officer Douglas Li said his company would be spending less than the previously estimated 1.5 billion Hong Kong dollars (US$192 million) on the launch, because the price of 3G equipment has dropped. He didn't give the exact date the service would begin.

The term 3G refers to mobile technologies that provide services such as high-speed Internet access, and high-quality video and music services.

SmarTone is among four Hong Kong mobile phone companies licensed to provide 3G services.

The other three are Hutchison Whampoa Ltd., Sunday Communications Ltd., and Hong Kong CSL Ltd., owned by Australia's Telstra Corp. All four have announced their intentions to offer the services.

Hutchison, controlled by Hong Kong billionaire Li Ka-shing, who is not related to SmartTone's Douglas Li, said last month that it would start its 3G service sometime this month after several delays.

Hutchison had originally set a launch date in early 2003, then pushed it back to August, and subsequently delayed it again because of because a shortage in available mobile phone handsets.

``SmarTone has had no delays or deferments to its plans to launch 3G,'' Douglas Li said.

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