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May 15, 2014

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Telco fires first salvo in luring users to services

CHINA Mobile has fired the first salvo in unveiling telecommunications packages to draw users to its services after the decision by the country’s regulators to open up the telecom market, Shanghai Daily learned yesterday.

The world’s No. 1 telco will cut prices by up to 50 percent, reduce the minimum entry-level package and allow users to share 4G data traffic starting from next month.

Its move comes on the heels of the decision by the Ministry of Industry and Information Technology and the National Development and Reform Commission to give state-owned telecom carriers more freedom to set prices and packages. The new policy seeks to foster innovative and competitive services to over 1 billion mobile consumers in China, analysts said.

China Mobile’s entry-level package, including 4G services, will cost 58 yuan (US$9.31) monthly from June, down from 88 yuan now. One of the most popular 4G data packages is set to cost 70 yuan for 2 gigabytes of traffic, up from 1GB now. The telco will also allow four people to share one data traffic package.

“People will enjoy 4G services with more choices and affordable prices,” China Mobile said in a statement yesterday.

Its move is expected to influence the market because of the telco’s 4 million 4G users in 200 cities nationwide since it debuted the latest technology at the end of last year.

China Unicom, the nation’s No. 2 mobile carrier, said on Tuesday that it will unveil more easy-to-use packages and special discounts on Saturday, the World Telecommunications Day.




 

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