CMG gets 7% lift from Hutchison 3G contract

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The Independent Online

The Anglo-Dutch IT services group CMG yesterday won a deal to provide the mobile phone operator Hutchison 3G with next-generation text messaging software.

The deal will enable Hutchison 3G's customers around the world to send and receive messages that contain text, pictures and video and music clips rather than just plain text.

The mobile phone business is expected to roll out the CMG technology in its operations in Italy, Sweden, Australia and Hong Kong. It will also use the kit in the UK once it has launched a mobile phone service here, expected in the autumn.

News of the so-called "multimedia messaging service" contract sent CMG shares up more than 7 per cent, or 17.25p, to close at 249p, although no financial details of the contract were made available.

Shares in the IT services group Logica, however, fell 2.5 per cent to 510p as investors fretted that it had lost out on yet another important contract.

Both CMG and Logica have been battling to gain the lucrative MMS contracts from mobile phone operators that replace the current text messaging software deals. Last month, both groups lost out on one such contract to supply a similar service to the mobile phone giant Vodafone. That deal went to Ericsson instead. Cor Stutterheim, CMG's chairman, said: "This contract shows that we have the compelling solution for 3G carriers who demand a short time to market and need to introduce innovative revenue-generating services."