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Unicom to Officially Launch 3G in September

Cctime.com, 8/27/09

China Unicom's (NYSE: CHU; 0762.HK; 600050.SH) 3G network will officially launch for full commercial use on September 28, according to a source with details of a recent internal 3G roll-out planning videoconference. The operator plans to have 6.5 mln 3G subscribers by the end of the Chinese New Year holiday early next year.

An informed source says that Unicom plans to drop fees sharply after the launch of 3G services: the operator has already decided on subscription fees, and will cancel long-distance and roaming charges, resulting in unified pricing nationwide. Province-level and city-level companies will have no power to set subscription prices.

Subscription fees will fall into 9 levels ranging from RMB 98 to RMB 886 per month; the highest-end subscription package available during commercial trials, priced at RMB 1,686 per month, will be canceled, and new plans will be added at RMB 98, RMB 126, and RMB 156 per month. During the commercial trials, subscribers exceeding the allotted number of minutes are charged between RMB 0.36 and RMB 0.24 per minute; this will be lowered by more than half, to a uniform overage cost of RMB 0.12 per minute, upon launch.

In addition to pricing changes, Unicom will also step up its channel sales efforts, and may solicit bids from 3G handset retailers in the near future. The operator may attempt to promote its services on a number of fronts, possibly increasing retailer handset commissions to encourage increased sales.

Unicom's new slogan for its 3G services was also revealed at the videoconference: "The marvels of 3G are most marvelous at WO," implying that while all 3G services offer unprecedented features, Unicom's WO service is the best of the bunch.

Keywords: mobile subscribers marketing China Unicom handset package roaming wireless 3G long-distance 0762.HK 600050.SH CHU tariffs WCDMA

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The information contained in this newsletter is based upon sources that Marbridge Consulting believes to be reliable, and we have made every effort to translate the original articles or article excerpts as faithfully as possible. However, Marbridge Consulting makes no warranty of and assumes no legal responsibility for the accuracy of either the original source material or the English language translations.

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