New cell phone package with free incoming calls may be the standard

   Date:2007/05/23     Source:
CHINA Mobile's Beijing branch launches a new package with free incoming calls today, but a simple calculation shows that its offering is not as competitive as that offered by Shanghai Mobile.

But the move by the operator is widely seen as a positive signal that a national one-way charging system may be the norm in future.

Beijing Mobile's new package charges subscribers a 50 yuan (US$6.50) monthly fee and 0.4 yuan for each local outgoing call. Subscribers can enjoy unlimited free incoming calls, according to Beijing Mobile's service line 10086.

The package is available for subscription from today at Beijing Mobile's outlets, according to its service line.

This is the first time Beijing Mobile has allowed users to enjoy free incoming calls without imposing strict conditions or via complicated packages.

By comparison, Shanghai Mobile charges a flat monthly fee of six yuan for unlimited incoming calls and the average local call fee is about 0.13 yuan, one-third of Beijing's level.

Shanghai Mobile and Shanghai Unicom won't launch any new packages in the immediate future as their present offerings are "competitive enough" (compared with other regions), the carriers said.

"It is a natural step to allow free incoming calls as Western carriers (and some Asian operators) have launched such services several years ago," said Yang Peifang, an expert at the China Academy of Telecommunications Research under the Ministry of Information Industry.

The ministry said in a statement last month that more than 467 million Chinese mobile phone users will be able to enjoy free incoming calls within two years.

The free incoming call policy won't dent a big hole in the carriers' income as the call volume jumps, Wang Jianzhou, China Mobile's chairman, said previously.

Two years ago, free incoming calls were forbidden as they threatened the revenue of the state-owned carriers, or "state assets."

But a more controversial issue is the high roaming and long-distance costs (up to 1.30 yuan a minute). The MII launched a survey last week on its Website to solicit comments from the public on the issue and it is expected that a new policy may be drafted.

"The telecommunications fee level will drop step by step over several years," the MII said in the statement.

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