Move down 4G tariffs

October 27, 2023

China Mobile announced on the 14th that it will launch a new 4G tariff plan for customers across the country starting from June 1. Mainly includes the 4G tariff reduction, the highest unit price drop of 50%, 4G package minimum 58 yuan from the package balance cycle to extend to half a year.

Moving this time the price cuts triggered the market's speculation on whether the traditional operators would start a price war with the virtual operators.

Xiang Xianggang, CEO of Feixiang.com believes that the decline in China Mobile's traffic charges is an impact on China Unicom's (15.62, -0.26, -1.64%) 3G/4G integration, and adjustments are basically not aimed at virtual operators. This, of course, is detrimental to virtual operators. This tariff adjustment has more impact. It is expected that Telecom and China Unicom will follow suit. This shows that the price of technological advancement, without 4G, cannot decline. This also highlights the need for 4G network construction.

Wang Yan, a telecom analyst, told the reporter of the China Guangwang.com Technology Co., Ltd. that adjusting tariffs is relatively normal, as the Ministry of Industry and Information Technology will issue FDD 4G trial commercial licenses to China Unicom and China Telecom (52.02, -0.43, -0.82%), resulting in operations. There is fierce competition among businesses. Prior to this, China Mobile (48.99, 0.01, 0.02%) has set a higher price for 4G fees, and the user acceptance rate is relatively low. In order to complete the target of 50 million users this year, it will attract users through a flexible price package model so as to ensure the completion of this year's target. There is not much relationship between price adjustment and virtual operators, and the relationship between traditional operators and virtual operators is not diametrically opposed. More cooperation is a win-win situation. Traditional operators want to grasp the entrance of the mobile Internet and combine their own services with their own characteristics to bind users.

According to the relevant personage of China Mobile, in terms of traffic, compared with China Mobile's current traffic package, the new package threshold has been reduced from the previous 40 yuan to 30 yuan, and the original 40 yuan 400M package is now 30 yuan packet 500M traffic. At the same time, the original 7-speed traffic package has increased traffic from 300M to 1G when the tariff has not changed. In addition, the 2G/3G packages' out-of-traffic charges have been uniformly lowered to 0.29 yuan/MB, which is consistent with the 4G package. The responsible person stated that he is considering and brewing the business of flow donation, exchange, etc., and will be launched in the future. This also means that users can donate their own traffic to others.

In terms of packages, China Mobile has launched quarterly traffic packs of RMB 30, 60 and 90, including 90-day effective 210M, 450M and 1500M traffic; and RMB 60, RMB 120 and RMB 180 half-year traffic packets, including 180 420M, 900M, and 3000M traffic available in the day.

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