Will cost-cutting pledges be more than just words?
By Global Times Published: May 19, 2015 09:13 PM
China Unicom will slash mobile data fees by 20 percent, China Mobile will reduce overall fees by about 35 percent, and China Telecom will reduce bandwidth charges by 35 percent, according to an announcement released by the three State-owned telecom operators on Friday.
The move came in response to a call last week from Premier Li Keqiang to raise Internet speeds and lower fees.
But some consumers have expressed skepticism about the announcement. The three State-owned telecom carriers have announced plans to raise Internet speed and cut fees in the past, but the effect has been limited.
However, the telecom operators have made a genuine step forward this time, and it's a wise decision to follow the market trend. The companies need to take action to win consumers' support.
It seems that the telecom operators will face a drop in sales revenue and profit due to the cut in fees and increase in Internet speeds.
But over the long term, it will help them to attract more customers.
This will allow the operators to expand their business and earn more profit.
The latest pledge on charges and services by the three carriers could be taken into account when evaluating their overall performance.
The government could also introduce third parties to help supervise the carriers' performance.
The author is Mo Kaiwei, a business commentator.
The Beijing News