SUNDAY

COMMUNICATIONS
LIMITED

Presented By:
Laxman Kumar Sharma

Ankit Gupta
Naveen Kumar Yadav
Narpal Singh Chauhan
 COMPANY’s Overview

 Founded in 1994.
 Developer and provider of
wireless communication and
data services in Hong Kong.
 It provides data services,
including SMS, MMS, e-mailing,
and Internet browsing and GPRS
data transmission services.
 3G License holder. In 2001,
PCCW/SUNDAY obtained the 4th
3G license in Hong Kong.
 It began commercial operations
with GSM 1800 wireless services
in 1997 and its far-sighted
management has built a high
quality, efficient infrastructure
that is supported by a strong
brand.
 EXPERIENCE AND AIMS
1. The SUNDAY experience is rooted in the belief that "fun is good".

2. SUNDAY 3G aims to deliver fun to customers through a wide variety of

entertaining content, intriguing handsets and innovative service,
combined with ease of use.
PCCW/SUNDAY Rises Rapidly in the Hong Kong
3G Arena
The first step of its 3G strategy was to find a first-class partner. On Dec 18, 2003,
PCCW/SUNDAY signed a contract with Huawei, declaring Huawei as sole supplier in
constructing a UMTS network to cover the whole of Hong Kong.

It has now rapidly built up a 3G subscriber base of 120 thousand users, jumping to
the second place out of the four 3G operators in Hong Kong.

FEW REMARKS :

“With this new service, I can enjoy TV programs on my handset during commuting
and noon break.” Renea 3G subscriber of PCCW/SUNDAY was elated.

Jim, a football fan, exclaimed with joy, “I don’t have to stay up for the World Cup or
English Premium League any more. Instead, I can conveniently view the goals and
match summaries during commuting hours the next morning. How great!”
 SUNDAY: The Brand
“FEELS LIKE SUNDAY”
A lot of our colleagues in the advertising industry look at Sunday’s ads and say,
”It’s another impact execution but where’s the strategy?” They convince
themselves that there is no strategy behind it because that reassures them that
the over rigid way they work is the right way. But I would ask anyone why the
client never stop buying this campaigns if the strategy is wrong? Either the client
is crazy or it works.”
-Paul Chan, co-executive creative director BBDO (1998-2001)

Strong Branding was leveraged through alliance marketing and joint promotions
with companies such as Cirque du Soleil, which had a similar image to Sunday.
The vice president of Cirque du Soleil, Mario D’Amico, said of their collaboration
with Sunday:”Sunday is a company that matches our personality; besides, they
do things differently.”

The key to Sunday’s branding strategy was a firm grasp of Hong Kong residents’
leisure time and growing attachment to their mobile phones.
 The SUNDAY Backlash
To break the taboo among it’s clients, Sunday used the mode of
advertisement to make its product magnetic. In the kind of environment
that Hong Kong possess, being able to make noise(in whatever way) is
already half way to success. Breaking taboos just one of the ways to make
huge noise.

There were some advertisements against which the viewers filed

complaints that the ads were inappropriate for television.

However advertising executive, Paul Chan, noted that in the ad of “Taxi

Driver” just under 2000 complaints were filed out of the total population
of 6 million, which is quite minimal.

Here is one of those ads from the late 2000’s.

 FINANCIAL REVIEW
Turnover and Gross Profit
Total turnover for the year declined 8%, or HK$101 million, as compared with 2003
to HK$1,159 million. The decrease was mainly attributable to aggressive price
promotions by operators during the year.

Gross profit in 2004 decreased by 14% to HK$802 million as compared with 2003,
mainly due to lower tariff rates and lower mobile services revenue.

Revenues from mobile services and the sales of mobile phones and accessories
accounted for 89% and 11%, respectively, of the total turnover in 2004.
 \ Year ended 31st December

    2004   2003

  Group 3G business 2G business Group

  (HK$ million) (HK$ million) (HK$ million) (HK$ million)

         

Operating expenses (excluding depreciation) 544 41 503 619

         

EBITDA 261 (41) 302 315

         

Net profit/(loss) 6 (43) 49 27

 FUTURE OF SUNDAY
In 2004, Sunday reported 78% drop in net profit to HK$ 6 million owing to
decline revenues and substantial investments in 3G. And in summer 2005,
PCCW made a successful bid for the company. PCCW chairman, Richard Li
noted,
”There is a lot of competition among Hong Kong’s 6 operators now. But we
are confident that SUNDAY will become the most profitable company with the
best quality and highest average revenue per user in 4-5 years.”

But with the glut of service plans available in the market, it became
increasingly confusing for the customers to differentiate and choose among
them. So Sunday’s “wacky” strategy was no longer new and exciting because
copycat marketing diluted the effect. For eg: “U Gotta Be Free” campaign for
CSL’s brand One2Free,which highlighted all the services and special offers in
a series of short duration television commercials in a consumer relavent way.
Hence one2free sustained its position as a trendsetter.
 KEY RISKS
The business performance of the Group is subject to market competition and
regulatory changes. Some forward looking statements made in this report with
respect to SUNDAY's corporate plans or strategies are made based on
management's assumptions and beliefs in the light of the information currently
available to it.

The key risks include, without limitation, the following:

1. Increased competition may reduce market share or revenues.
2. Delays in the roll-out of the 3G network and limited choice and availability of
3G handsets may hinder the deployment of new technologies.
3. Expected benefits from investments in the networks, licences and new
technologies may not be realised.
4. Regulatory decisions and changes could adversely affect the Group's business.
5. ARPU may not be increased by the introduction of new services.
Would Sunday’s Brand Image Ultimately Fizzle
Out Among The New Branding Superstars???

NO!!
THANK YOU…