Why are operators vying to push new 4G packages under the 5G market?

2021.06.18


In 2021, when 5G is rapidly popularized, operators have not "abandoned" 4G packages.

Recently, the three major operators have successively launched a number of new 4G package cards. Among them, China Telecom launched the "filial piety card", China Mobile launched the "Hand Q Treasure Card", and China Unicom launched the "Wopai Youth Card".

According to industry analysts, operators have launched a variety of new 4G packages to increase the size of the mobile communications market. As there are still some 2G and 3G users in China, if operators can guide 2G and 3G users to upgrade through the new 4G package, it will help drive business growth.

The three major operators focus on the 4G market segment
Recently, the three major operators have joined in the 4G market segment by appointment.

China Telecom has launched a special preferential tariff for the "filial piety card" suitable for elderly users. The card is only available for seniors aged 65 and above. The package includes 2GB of general data, 10GB of exclusive data covering some apps, and 100 minutes of voice time. In addition to satisfying basic communications, a communication assistant can be opened for free, which can remind you of missed calls, provide intelligent identification of unfamiliar calls, and intercept fraudulent and harassing calls.


China Unicom launched the "Wo Pai Youth Card" for young users. Among them, Shenzhen Unicom's Wo Pai Youth Card is 39 yuan per month. The package includes 80 minutes of voice time, domestic traffic 00GB, and provincial targeted traffic 40GB. Youku, Member rights of platforms such as Tencent Video, NetEase Cloud Music, and JD.com.

The "Mobile QQ Treasure Card" launched by China Mobile and Tencent has a monthly rent of 19 yuan, no monthly rent for the first month, and a data rate of 1 yuan/GB. The QQ Treasure Card includes a 30GB exclusive free streaming monthly package. The free streaming range includes Tencent series. More than 100 popular third-party apps such as Baidu, Douyin, Netease Games, and Ali are regarded as the mobile version of the "Tencent King Card" by the outside world.

4G users still dominate the market
At present, the development of 5G package users in my country is advancing by leaps and bounds. According to the April 2021 operational data report released by the three major operators, the scale of 5G package users has reached 420 million. However, 4G users are still the mainstream compared with the total number of mobile users of the three major operators of up to 1.605 billion. As of the end of April, China Mobile alone had 790 million 4G users, accounting for nearly half. The scale of 4G users is still very large, and the potential of the 4G market still exists. Under this circumstance, it is a more pragmatic choice for operators to continue to deepen the 4G market.
In fact, the existing 2G and 3G users in China need to upgrade their mobile phones and packages due to network reasons, which also brings opportunities for the expansion of the 4G market. Compared with 5G, 4G lags behind 5G, but it is cheaper. For middle-aged and elderly users, they pay more attention to price factors and prefer lower-priced 4G packages. If operators can launch cost-effective 4G packages, it will have a strong appeal.

Can balance the cost of 5G network construction, operation and maintenance
Just as the general trend of 2G and 3G users withdrawing from the network, the future transition from 4G to 5G is also the law of the development of the communications market. However, for now, the real popularization of 5G cannot be achieved overnight. Zhang Yunyong, general manager of China Unicom's product center, said that it will take 5 to 8 years to fully realize 5G network coverage.

It is worth mentioning that domestic commercial 4G was only started in 2014, and 5G commercial was launched only after more than five years. Operators immediately upgraded to 5G when 4G investment has not yet been recovered. The investment pressure is self-evident. .
In order to save 5G construction expenses, China Telecom and China Unicom jointly built and shared 5G networks. China Unicom Chairman Wang Xiaochu once revealed that in the five-year 5G construction cycle, joint construction and sharing will save China Unicom and China Telecom 200 billion yuan each. Capital expenditure.

Under the pace of large-scale investment in 5G, while the three major operators are increasing the promotion of 5G packages, launching a variety of new 4G packages will help alleviate financial pressure, and will pave the way for these users to upgrade to 5G in the future. After all, 4G operators have very mature business operations, and their later operation and maintenance costs are relatively low. For many users, choosing a cost-effective 4G package is also a good choice.

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