Inter-network SMS Differential Pricing Cancelled, Being Favorable to Long-term Development of China

Inter-network SMS Differential Pricing Cancelled, Being Favorable to Long-term Development of China
Jan 15, 2009 02:02
CHINASTOCK Points: Join Date: Dec 28, 2008 Status: offline	1. As released early in the morning of January 15, China Mobile, China Unicom and China Telecom are to cancel inter-network SMS differential pricing officially from today on; currently, service fee of sending SMS across networks is Rmb0.1 per piece. 2. At present, SMS income accounts for 12%, 10% and 6% respectively of China Mobile, China Unicom and China Telecom, with market share of consumer scale at 73.7%, 21.8% and 4.6%. Before the differential pricing cancellation, Rmb0.05 service fee was charged additionally for sending a piece of SMS across networks, and operator paid inter-network settlement fee of the same amount (Rmb0.05/piece) to other ones. 3. On the whole, the cancellation does not affect profit of integrated telecommunication business and produces quite limited impact on each operator’s profit. 4. The policy will smooth out the consumer scale advantage of China Mobile in SMS business, balance the market competition and avoid monopoly of large operators, which is beneficial to development of disadvantaged operators like China Unicom and China Telecom.

Jan 15, 2009 02:02

CHINASTOCK
Points:
Join Date: Dec 28, 2008
Status: offline

1. As released early in the morning of January 15, China Mobile, China Unicom and China Telecom are to cancel inter-network SMS differential pricing officially from today on; currently, service fee of sending SMS across networks is Rmb0.1 per piece.

2. At present, SMS income accounts for 12%, 10% and 6% respectively of China Mobile, China Unicom and China Telecom, with market share of consumer scale at 73.7%, 21.8% and 4.6%. Before the differential pricing cancellation, Rmb0.05 service fee was charged additionally for sending a piece of SMS across networks, and operator paid inter-network settlement fee of the same amount (Rmb0.05/piece) to other ones.

3. On the whole, the cancellation does not affect profit of integrated telecommunication business and produces quite limited impact on each operator’s profit.

4. The policy will smooth out the consumer scale advantage of China Mobile in SMS business, balance the market competition and avoid monopoly of large operators, which is beneficial to development of disadvantaged operators like China Unicom and China Telecom.

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