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Telecom operators lower 5G package threshold
2020-06-24 
A pedestrian walks past a 5G promotion board. [Photo by Su Yang/For China Daily]

Three major operators have lowered the threshold for 5G packages, making the cheapest 5G package only 69 yuan ($ 9.76), Shanghai Securities News reported on Wednesday.

China Mobile provides customers the largest discount at 31 percent, and the discounts provided by China Telecom and China Unicom are 30 and 20 percent, respectively.

The original price of China Mobile's personal 5G premium package is 128 yuan per month, and the discounted price will be 88 yuan per month with the condition users sign a 12-month contract.

The discounted price of China Unicom's 5G Refreshing Ice Cream package is 90 yuan per month with a prepaid fee and a 12-month contract.

The contract period of China Unicom is the longest at 24 months, and the discounted price is 103 yuan per month for the 5G premium package.

During the contract period, users of all three operators can only change to more expensive packages, and any termination of the contract shall be subject to liquidation damages.

Operators' price cuts on 5G packages are not aimed at "destroying competitors", but trying to attract 5G users and improve 5G network utilization, analyst Fu Liang said.

It is now the right time for operators to lower 5G package thresholds and attract more users to upgrade from 4G to 5G, as the price of 5G handsets is moving below 1,500 yuan and 5G network coverage continues to expand, Fu said.

As more and more people choose to use 5G packages, the Chinese market may witness the first wave of 5G consumption, which will stimulate more developers to launch 5G applications and speed up maturity of 5G industrial chain, said Wu Chunyong, founder of DWRH.net.

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