China Unicom Posted 5th Consecutive Decline in Mobile Service Subscribers

Published By : 24 Jul 2015 | Published By : QYRESEARCH

In June, 2015, China Unicom has reported a decline 5th time consecutively in the base of mobile service subscribers. The lagging 4th-gen network infrastructure of the firm is believed to be the main reason behind this decline.

The total number of subscribers of China Unicom have fallen 999,000 in June, 2015 and stood at just 289 million. The decline is continual and the firm has lost a net 10 million subscribers since January, 2015. In the meanwhile, two other telecom providers in China, China Telecom and China Mobile, reported increase in the subscriber base of 5.17 million and 10.56 million respectively, over the same period.

China Unicom the most favored telecom brand in China for its 3G service, having the fastest transmission speed in the telecom sector, that is, of 42 Mbps, the subscriber base has been damaged by the launch of 4G service in 2014. In 2014, the sales of China Unicom dropped to 284.7 billion Yuan or US$45.86 billion from 295 billion Yuan or US$47.52 billion in 2013. The net profit growth of China Unicom also declined to 15.9% from 46.6%, a year earlier.

China Unicom’s failure to estimate the rapid development in its competitor’s business, particularly 4G, has cost the company a bomb. The firm lagged behind in constructing a 4G network, said Mr. Fu Liang, a telecom sector expert.

China Mobile, another telecom giant, have completed covering the whole country with 4G network in just 18 months, and according to the recent most data, the firm had around 190 million 4G subscribers, at present, which is more than the collective user base of China Unicom for 3G and 4G.
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