[photopress:it_mobile_phone_user.jpg,full,alignright]Roaming charges for cell phone usage is about to be cut dramatically. The cut is expected to range from 54% to 73%. Currently users pay up to RMB1.50 ($0.21) per minute for roaming charges, approx. ten times the tariff for local calls.
While this reduction is expected to be put into effect by March 1, China Unicom and China Mobile will be given a grace period up to May.
China Unicom is saying that this move may impact its revenues going forward. Which means it will make less money.
Possibly, probably true. But as the roaming charges go down so the services offered on mobile phone go up. If and when 3G becomes available — and it looks as though the announcement may neatly coincide with the drop in charges — then the mobile companies will have another rich vein to mine.
Add to this the equation that a reduction in roaming charges pretty much automatically results in greater usage.
All that this will do is let China keep it’s position as the most wired nation on earth but that the source of income for the phone companies will be modified.
Source: Seeking Alpha