China Mobile lowers data price by 40% on 4G service packages

Analysts agree that pricing freedom will drag the overall service charges as the nation's only three state-owned carriers vie for customers. But a price war is not likely.

"Price competition became inevitable after the regulators fully marketized the industry," said Milly Xiang, chief telecom analyst at research firm IDC China.

Under most circumstances, regulators will not directly challenge carriers' price settings although intervention is always a possibility if things go wrong, said Xiang.

"China Mobile was eager to enlarge 4G user numbers because its only competitors, China Telecom Corp and China Unicom (Hong Kong) Ltd, are receiving new 4G licenses from the MIIT," Xiang added.

China's telecom price could go even lower after 26 virtual carriers join the game, said He Xia, a senior researcher at China Academy of Telecom Research under MIIT.

Overall service charges in the nation dropped by 10 percent during the first three months compared with the fourth quarter of 2013, said He.

"Because of increasing 3G and 4G penetration rates in less-developed inland regions, the average price is set to dip in coming years," He said.

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