China Telecom official warns of unchecked competition

28 Jun 2018

China Telecom President Liu Aili has warned that rampant price competition in China’s mobile sector will have a damaging impact on all of the nation’s wireless providers. Mobile World Live quotes the official as saying: ‘When we have fierce competition, industry value reduction is prominent.’ The executive went on to explain that operators’ CAPEX and OPEX are growing rapidly, but they are not seeing commensurate revenue growth. China’s trio of mobile providers – China Mobile, China Telecom and China Unicom – committed to reducing prices earlier this year, in line with the government’s policy of driving down tariffs, especially for data services. Mr Aili added that with nearly 1.5 billion wireless subscriptions, the sector is highly saturated, but with cellular penetration of just over 100% at the end of 2017, the market showed no signs of slowing down. TeleGeography’s GlobalComms Database notes that the cellular market expanded by 7.0% in 2017, following growth of 1.3% and 1.5% in 2016 and 2015, respectively.