China Mobile Slashes 4G Tariff June Up to 50%
Source: View: 266 Date: 2014-06-06

As of June 1st, the slashing of 4G service tariff announced by China Mobilebefore comes into effect formally. The adjustment emphasizes on the 4G data traffic tariff, such as the price of the cheapest 4G traffic package has been reduced 40 RMB to 30 RMB. Moreover, the mobile data traffic of the original price doubles, for example, in the past, subscribers pay 70 RMB for 1GB traffic package, but the new service offers 2GB data traffic with same price. Also, subscribers don’t have to pay for their 4G service tariff monthly; China Mobile provides three types of 4G data traffic packages quarterly and other three half year data traffic packages.

It is said that China Mobile Guangdong branch(CMCC GD) promotes 20 RMB of 4G packages in advance, lowering the 4G threshold further. The 20 RMB package includes 300MB 4G data traffic, in addition, the new complete 4G service package system fixed by CMCC GD, consisting 30 RMB /500MB data traffic, 50 RMB/1000MB and 70 RMB/2GB.

China Mobile says, the slashing 4G data traffic tariff aims to "attract more 2G/3G subscribers shift to 4G".

But Zhang Xing, the analyst of an advisory agency RationaAB says, despite the 4G tariff has been slashed, China Mobile should not have nothing to worry about its own business future and competitors.

“On one hand, it is a tough challenge to persuade 2G/3G subscribers to upgrade to 4G for China Mobile itself, not to mention the competitors are awaiting for the chances to combat for this fight, to not to be fallen behind.” Zhang Xing says, executives of China Mobile have expressed their worries on several public occasions about the present subscribers structure, for among nearly 800 billion China Mobile subscribers, only 4 million are 4G subscribers, while the majority of them are still using 2G and 3G service. “2G mainly provides voice and text messages service, with lower and lower profitability. And China Mobile 3G service, based on TD-SCDMA network, has fallen behind China Unicom and China Telecom at speed.”


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