China

Chinese Telecom Operators to End Domestic Roaming Fees and Domestic Long Distance Call Surcharges, Starting Sep 1

Summary:

  • China’s three major telecom operators, namely, China Mobile (CHL.NYSE), China Telecom (CHA.NYSE) and China Unicom (CHU.NYSE), recently announced that they would end domestic roaming fees and the domestic long-distance call surcharges, effective from September 1, as reported by Tencent Finance.
  • The three operators also plan to further cut international roaming fees.

Why It Matters:

  • Prior to this change in policy, Chinese operators levied additional charges when a user was registered in one city but used telecom services in other domestic cities (domestic roaming fee). Also additional charges were levied when a user was registered and located in one city but dialed a number in other domestic cities (domestic long distance call surcharge).
  • Earlier this year, the three telecom operators promised to end the two fees by end of this year, but the effective date of September 1 is earlier than expected.
  • As SGI reported in June, China Unicom also announced plans to reduce voice roaming fees in 85 countries by an average of 65.92% and data roaming fees in 25 countries by an average of 84.57%.