BEIJING-Mobile-phone operator China Unicom has introduced promotional offers in at least 10 Chinese cities to attract subscribers to its fledgling CDMA network. Unicom originally positioned its CDMA services as a high-end alternative for rival China Mobile’s and the company’s own GSM services, but consumers were slow to switch due to a lack of incentives and CDMA-compatible handsets.
Unicom is now offering several incentives. Subscribers can choose free minutes worth between 150 yuan (US$18) and 500 yuan (US$60.5) or opt for a bucket plan of 170 minutes of local calls at a discount of at least 45 percent. Customers trading in their GSM handsets are offered a 1,000 yuan (US$121) rebate.
China Unicom is now also trying to attract middle and low-end users. The company claims to have signed slightly more than 1 million subscribers on its CDMA network, which has a capacity of 15.5 million users. The company’s target of 7 million users at year-end is still far off.
Several manufacturers, including Motorola, Haier, Haixin and Kejian, have cut CDMA handset prices by an average of 40 percent.
Analysts worry that China Unicom’s promotional offers may lead to a full-scale price war with China Mobile.
