China Mobile’s “fascinated behavior”: providing free 5G services for 4G mobile phone users, the answer is dumbfounding

On March 17th, in 2018, the concept of 5G was gradually mentioned and hotly discussed, and countries around the world have also invested in the construction of tense 5G infrastructure. It is worth mentioning that it took several years for the concept of 4G to be commercialized, while 5G was only commercialized in the second year, that is, in 2019. From the perspective of the current situation of the Internet and the development needs of the future industry, the application and popularization of 5G cannot wait.

The development of 5G is not the growth of 5G users, but the comprehensive development of the entire 5G industry. Recently, some netizens exposed China Mobile’s “fascinated behavior”. According to netizens, he recently received a text message from China Mobile, which stated that in order to allow users to better enjoy 5G network services, China Mobile will provide them with free 5G preferential services, which will take effect next month. The reason why China Mobile’s behavior is called “bewildering behavior” is because the mobile phone used by this netizen is a 4G mobile phone.

China Mobile’s answer is ridiculous: the same 4G package is replaced by a 5G package, the price will not only be cheaper, but the package content will also increase. In other words, this so-called 5G user is actually only a 5G package user, and the mobile terminal and mobile network used by the user are only 4G.

But please note that it is a “5G package user”, not a “5G user”.

China Mobile’s current 5G promotion strategy, taking Beijing Mobile as an example, it can be seen that it is mainly based on package discounts, and its starting gear is even lower than 4G. This will inevitably attract a large number of 4G users to sign up for 5G packages. But among the 6.73 million 5G package users, it is estimated that, like the author, there are not a few users who still use 4G mobile phones.

In the absence of 5G mobile phones, 5G networks, and no change in usage habits, the data traffic of such users will not increase significantly, and will not make a substantial contribution to the improvement of China Mobile’s ARPU value. Substituting 4G packages to 5G packages saves data expenses, which has a negative impact on China Mobile’s business revenue.

In order to realize the commercial use of 5G in the first batch of 50 cities, as of the end of February this year, China Mobile has opened more than 80,000 5G base stations, and has started the second phase of 5G project construction. It plans to build 230,000 5G base stations in 28 provinces within this year. , the industry is expected to involve capital expenditure as high as 58 billion yuan.

The Links:   GD25PJT120L3S DMF-5010NF-FW IGBTS