China Unicom: Flow tariffs decreased by about 20%




China Unicom announced on May 15 its “speed-up and fee-reduction” plan. The 3G/4G mobile broadband network will cover more than 95% of the population during the year.

China Unicom has adopted four measures to reduce the overall unit price of mobile data traffic of mobile users across the entire network by more than 20%. The first is to launch a half-year package promotion campaign with a rate of RMB 1.5 per pack and 1.5GB within the province. Traffic is not cleared for months and is valid for half a year. The second is the introduction of value-for-money directed traffic. Launched a video-oriented flow package, with a price of 18 yuan and 6GB per month. The third is the introduction of a traffic banking platform, which enables the transfer, sharing, exchange, and other functions of traffic. Fourth, it analyzes consumer communication behavior and conducts in-depth analysis of big data. The user selects a suitable package, improves package matching, and reduces user communication expenditure.

China Unicom reduced the 20M fixed broadband tariff in Beijing to 1,480 yuan/year from 1,780 yuan/year, 50M tariff from 1,680 yuan/year to 1,780 yuan/year, and 100 yuan tariff from 3,280 yuan/year to 1,980 yuan/year.

According to China Unicom, the company has been earnestly implementing the requirements of the Party Central Committee and the State Council, as well as the deployment of the Ministry of Industry and Information Technology and the State-owned Assets Supervision and Administration Commission. It has always served the national economy and national informatization, and effectively fulfilled the social responsibilities of the central enterprises. As a basic communications operator, China Unicom is deeply aware of the important tasks and missions it undertakes in its national strategy. On the one hand, it is strengthening the construction of information infrastructure. On the other hand, it is carrying out the “Internet+” industry practice, which will serve as a Economic development provides a strong driving force. China Unicom responded positively to the requirements of the State Council and relevant ministries and commissions and proposed specific plans to increase infrastructure investment, increase network speed and reduce tariffs, and launched a series of specific measures.

First, speed up the construction of network infrastructure and continuously increase the network speed

(I) Accelerating the construction of fiber-optic subscribers and increasing the broadband access rate of fixed networks

China Unicom has intensified efforts to comprehensively promote the fiber optic transformation of broadband networks. By the end of 2015, the broadband access capacity of urban households in the 10 northern provinces has basically reached 20M, and rural households have basically reached 4M. They are striving to basically realize the transformation of the entire network's optical fiber at the end of 2016.

(II) Strengthen the construction of 4G mobile network and improve the Internet speed of mobile terminals such as mobile phone users

In 2015, China Unicom will expedite the deployment of 4G networks so that the 3G/4G mobile broadband network will cover more than 95% of the population. Reducing the 4G network usage threshold, assisting users to replace 4G terminals and enjoying 4G high-speed Internet access through various contract subsidies.

Second, optimize the charging model to reduce Internet access costs

(I) Directly lower fixed broadband tariff

China Unicom reduced the 20M fixed broadband tariff in Beijing to 1,480 yuan/year from 1,780 yuan/year, 50M tariff from 1,680 yuan/year to 1,780 yuan/year, and 100 yuan tariff from 3,280 yuan/year to 1,980 yuan/year.

(two) take measures to reduce mobile broadband tariffs

China Unicom has adopted four measures to reduce the overall unit price of mobile data traffic of mobile users across the entire network by more than 20%. The first is to launch a half-year package promotion campaign with a rate of RMB 1.5 per pack and 1.5GB within the province. Traffic is not cleared for months and is valid for half a year. The second is the introduction of value-for-money directed traffic. Launched a video-oriented flow package, with a price of 18 yuan and 6GB per month. The third is the introduction of a traffic banking platform, which enables the transfer, sharing, exchange, and other functions of traffic. Fourth, it analyzes consumer communication behavior and conducts in-depth analysis of big data. The user selects a suitable package, improves package matching, and reduces user communication expenditure.

(III) Carry out fixed broadband and 4G convergence services to further reduce overall costs

China Unicom, on the basis of solid migration and integration, launched the smart Wojia integration package, which includes broadband and mobile phone traffic, enabling users to obtain more available traffic with the same tariff level.

In recent years, China Unicom has vigorously stepped up its network coverage, actively increased its internet speed, reduced its tariffs, and launched a number of communications services that allow users to use them with ease.

The network rate continues to increase. In terms of mobile network, from the 3G commercial speed of 7.2 Mbps in 2009, China Unicom has accelerated several times, and the peak speed of the 4G network has reached 150 Mbps by 2015, and the network speed has increased by more than 20 times, which is equivalent to the 4G peak rate in Europe and the United States. With respect to fixed broadband, China Unicom vigorously promoted the "Broadband China" initiative, speeding up the transformation of the network's fiber optics and adding new regional optical network coverage. From 2012 to the end of 2014, the number of broadband access ports ranges from 100 million to 143 million. Newly-added optical fibers cover more than 20 million home users, with a cumulative total of 86.58 million. Exceeding the goal and tasks of the "Broadband China" required by the state. As of March 2015, the proportion of users with more than 8MB increased significantly from 8.3% at the end of 2012 to 41.3%.

Network tariffs continue to decrease. In 2009, China Unicom launched a 3G package, innovatively introduced long-term, city, and man-hour integration fees, data traffic does not distinguish between local and roaming national unified tariffs, and the unit price of traffic is continuously optimized from 1 yuan/MB of 2G tariff. In 2014, China Unicom launched a series of 4G packages with a greater decline than 3G packages, with the unit price drop of 60% and 70-80%, respectively. The introduction of a variety of preferential packages to promote the continuous reduction in the price of the flow, the lowest unit price as low as 10 yuan / GB or less.

It is worthy of praise that China Unicom has reflected on hot issues such as the inability of mobile broadband Internet access and complex pricing packages to address customer issues, and innovatively implemented services such as "double capping, ease of use, and half-yearly package" services, with a maximum of 60 yuan/GB caps for outbound traffic. The monthly maximum flow rate is 15GB capped; development of on-line mobile phone business hall, WeChat business hall, SMS business hall and other intimate services, allowing users to control the flow of track in real time.

The decline in telecom tariffs has played a positive role in stabilizing prices and curbing the excessive increase of CPI. According to the estimates of the Ministry of Industry and Information Technology (from 5 years from 2006 to 2011), the drop in tariffs for telecommunications services is due to a drop in telecommunications services, and the drop in CPI is 0.13~. Between 0.45 percentage points, the telecom industry's tariff is also the only one that continues to decline. The decline in telecom tariffs has a greater effect on the steady growth of the economy.


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