Consumers Want Flexible Service Plans With 4G LTE Networks in China

Strategy Analytics forecasts that 4G LTE mobile networks will reach over half the Chinese population by 2016 up from just 8 percent today

BOSTON, Nov. 13, 2015 /PRNewswire/ -- Aside from the desire to gain access to faster mobile networks and catch up with the latest technology trends, a new report from the Mobile Device UX (MDX) Group at Strategy Analytics has found that 'gifted' data allowances, reduced service fees, and convenience to upgrade, were the top reasons for participants to adopt a 4G plan in China. In addition to recommendations from friends, trials of 4G services would also be persuasive for consumers who have yet to adopt this network.

Increasing from 8% coverage in 2014, Strategy Analytics forecasts that 4G LTE mobile networks will reach over half the Chinese population by 2016. Though fees and bundled packages remain the main cause of dissatisfaction for consumers using or considering 4G networks currently, compared to consumers surveyed in 2014, participants in this study exhibited relatively greater satisfaction for 4G coverage and stability. The most recent implementation of cumulative data allowances by the three Chinese operators (China Mobile, China Unicom and China Telecom), will definitely be of benefit to consumers. However, while this allows them to keep unused data to the next billing date, dissatisfaction is still likely to occur due to consumers being unable to find flexible plans that leverage their individual needs for voice calls, text messages and mobile data combined. This means that consumers may need more voice call allowance while unused data is left over every month.

Alvin Wu, report author and Senior Analyst commented, "It would be highly advantageous if consumers could convert unused minutes or data into what they really need from their monthly plan. Furthermore, consumer adoption of 4G is likely to drive up music and video streaming consumption on mobile networks. Providing and promoting unlimited data packages for specified music or video services will bring a win-win situation to both mobile operators and music/video service providers."

Paul Brown, Director, Mobile Device UX, added, "With faster network speeds, users are consuming more data through streaming music and video, as well as generating and sharing media content on social networking sites. As such, they have become more conscious about data usage management, and require tools to allow them to accurately track and manage their data limits."

Source: PRNewswire