China Mobile to drop roaming charges
China Mobile Communications Corp, the country’s largest telecom operator, said it will scrap domestic roaming charges by the end of this year, a fee that is considered as a key source of revenue for telecom carriers, as the company focuses on more lucrative 4G services.
“Since July, China Mobile has stopped selling new service packages that include domestic roaming charges on crossprovince phone calls,” said Li Yue, president of China Mobile. He predicted that the company will cancel all roaming longdistance packages by the end of the year.
China Mobile’s first-half net profit grew 5.6 percent due to fast growth in lucrative 4G services. Its 4G subscribers increased to 429 million, reaching 51 percent of the total.
The company’s revenue from its data transmission business exceeded traditional businesses such as voice services for the first time, becoming its largest source of income.