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China Unicom Continues Promoting Budget 2G Calling Plan

Sina Tech, 5/30/12

In May 29 remarks on the launch of "Suiyi Da" ("Call As You Like") budget calling plans by Zhejiang Unicom and other subsidiaries, China Unicom (NYSE: CHU; 0762.HK; 600050.SH) president Lu Yimin said that the plans served to help the operator increase 2G usage, adding that Unicom has no plan to cancel the services. The plans are a move to trade on China Unicom's network resources to increase market share, Lu said, noting that China Unicom has a massive market for 2G services, but makes little use of its resources.

Responding to the Ministry of Industry and Information Technology's (MIIT) order to cancel "Suiyi Da" services, China Unicom chairman Chang Xiaobing noted that while regulatory agencies are constantly working to manage market competition, the "Suiyi Da" plans are not a unified, nationwide move by the operator. China Unicom will work within the scope of regulations to grow according to fair principles, Chang said.

China Unicom subsidiaries at provincial, municipal, and county levels in Zhejiang, Guangxi, Hubei, Gansu, Beijing, and Henan, among other areas, have released "Suiyi Da" plans.

Editor's Note: For more information on this topic, please see "Rumor: Unicom 2G Calling Plan Violates Telecom Regulations," MD 5/21/12 issue.

Keywords: package Lu Yimin Chang Xiaobing China Unicom wireless MIIT 0762.HK 600050.SH CHU regulation

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