Chinese market leader China Mobile has fulfilled its promise of halving LTE charges by doubling the amount of data available to its 4G subscribers without raising its tariffs.
The operator is now offering a monthly allowance of 2GB for CNY70 ($10), having previously charged this rate for 1GB. The price drop appears to be a response to negative reactions over its high 4G tariffs, as well as reported poor signal and coverage levels.
It could also reflect concerns from the operator’s shareholders following its AGM on May 22. Reportedly, there is a belief that the TD-LTE network’s profitability does not match up to the high level of investment that it received.
China Mobile will funnel a further CNY225.2 billion ($35.7 billion) into its networks across 2014, an increase of 20% over last year. Around half of this will be spent on mobile networks, including 500,000 TD-LTE base stations to provide coverage to over 340 cities.
China Mobile gained an additional two million TD-LTE subscribers in April, bringing its total up to 4.8 million 4G subscribers. The service was launched commercially in December.