China Unicom has launched an aggressive price-cutting initiative in Guangzhou, Guangdong province, for users of its GSM mobile network. For a monthly fee of Yn10, subscribers would receive free incoming calls from other mobile users, including those from rival China Mobile.
The move marked an intensification of price competition in one of China's most important cities in response to the expansion of Xiaolingtong services by fixed-line carriers. China Unicom described its plan as a short-term promotion that did not violate government regulations. Despite intense levels of competition, China Unicom said it planned to maintain 'stable' divided payouts in the long-term. The commitment followed a similar pledge by China Mobile (Hong Kong).