Recently, mobile phone users in various parts of mainland China have been complaining about the three major telecom operators engaging in “price discrimination against loyal customers.” Many long-standing customers have discovered that their years-old package prices are higher, while the data and call minutes allocated are far less compared to new customers. When users request to downgrade their packages, customer service often deflects with reasons like “system constraints,” “package discontinued,” or “contract binding.”
The term “price discrimination against loyal customers” generally refers to businesses taking advantage of the loyalty and high switching costs of old customers to make them bear higher prices or worse transaction conditions. In the realm of mobile phone packages, the controversy mainly manifests as loyal customers finding it difficult to enjoy the benefits given to new customers, facing obstacles in downgrading plans, and encountering opaque entry points to lower-priced packages.
According to a report from Sina Finance on June 19th, Mr. Guo, an 18-year-old user of a certain operator, currently pays 128 yuan for a package with only 30GB of data and 200 minutes of call time. In contrast, a new user named Mr. Deng has a 69-yuan package with 100GB of data and 1000 minutes of call time. When Mr. Guo requested a price reduction, the operator did not switch him to a lower-priced package but instead added 120GB of data to his existing plan, claiming it would take effect immediately.
Such complaints are not isolated incidents. A report by “The Paper” mentioned that Ms. Li, a 12-year customer of China Mobile, pays 79 yuan per month for a package that includes only 5GB of data and 90 minutes of call time. After numerous attempts to resolve this with customer service, it was only when she threatened to switch to another network and complained to regulatory authorities that she was offered an additional 30GB of data and extended call time for free, all while keeping her monthly fee at 79 yuan under a two-year contract.
A user in Guangdong who has been with China Mobile for nearly 20 years stated that her 159 yuan monthly package includes 400 minutes of call time and 80GB of data, while a friend’s 39 yuan plan not only includes call subsidies but also 110GB of data. She feels that as a loyal customer, she has become a “scapegoat.”
Downgrading packages is equally challenging. A China Unicom user in Heilongjiang initially had a 159 yuan package with 700 minutes of call time and 40GB of data. Upon discovering a more cost-effective plan, he faced difficulty in transitioning. Only after multiple complaints, was he able to switch to a 139 yuan package offering 220GB of data and 1000 minutes of call time.
In another case, a user named “Qi Qi” from Anhui province attempted to downgrade her mobile plan to the minimum level but was informed by customer service that her number was tied to broadband and involved a gift fee contract, which could not be processed online and required backend personnel intervention.
A user named Xiao Zhao in Hubei province was paying for a 129 yuan package. When trying to change his plan online, the recommended options were 169 yuan, 199 yuan, and 239 yuan packages – all higher priced. Eventually, he found a 99 yuan plan but had to make an appointment with manual customer service. Later, customer service cited a “loyal customer promotion” to secure him a 20 yuan discount for the next 6 months, making his actual monthly fee 109 yuan.
Responding to online criticism about the unequal treatment between new and old customers, a representative from China Mobile’s Huai’an branch explained that promotional offers are set based on different scenarios and user groups, which may lead to conflicts between promotions. For loyal customers, there are also arrangements for additional data and benefits. However, this response did not address why loyal customers have to endure higher fees for an extended period while finding it challenging to switch to lower-priced packages directly.
As of the time of these reports, the headquarters of the three major telecom operators in China had not issued a unified response to address the complaints.
Quoting legal experts, media in mainland China stress that operators are obliged to protect consumers’ rights to information and fair trading, and they should not exploit technological means to enforce unreasonable different treatment. However, in reality, users often find it difficult to prove they are victims of “price discrimination against loyal customers,” with challenges in evidence collection and verification.
Media analysis suggests that as the scale of mobile phone users in mainland China reaches saturation, operators are investing more in incentives to attract new customers. Simultaneously, the mobile numbers of loyal customers are often linked to WeChat, Alipay, bank accounts, broadband, and secondary cards, making the cost of switching or terminating services higher and increasing the likelihood of being locked into existing higher-priced plans.