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China Mobile, China Unicom, China Network Communication (CNC), China Telecom and China Railcom, five of China's biggest telecommunications providers (telcos), have promised to improve their pricing and management systems in the name of better customer care. The move is considered to be a timely response to mounting criticisms and complaints by customers, March 15 being International Consumers Day. 

What customers are complaining about

Statistics released recently by China Customers' Association (CCA) show that telecom customers are generally dissatisfied with services.

The CCA received 34,451 complaints last year. The majority of complaints involved illegitimate short message service (SMS) texts relating to winning the lottery, requests for bank account details, real estate advertising, the sale of stolen or confiscated goods, the promotion of falsified certificates, and obscene messages. 

Compared to previous years' statistics, more complaints were received against service providers and mobile phone quality, after pricing and fixed line contract terms.

With regard to pricing, many customers complained that the telcos' pricing systems were not transparent enough. Customers alleged that the lack of transparency made it difficult for them to assess actual expenditure. The number of complaints here increased 13.1 percent year-on-year in 2005.

There were many complaints relating to wrongful charges, particularly in relation to mobile phone subscribers. Complicated inquiry procedures also made it much difficult for customers to get to the bottom of the matter. Most customers said that had they not asked to see an itemized bill, they would never have found out about the wrongful extra charges.

Another popular complaint relates to phone card balances. Users insist that unused balances should not be confiscated, but telcos argue that this is an "international practice."

Inequitable contract terms for fixed line subscriptions were another point of contention. Subscribers have voiced strong objection to allegedly unreasonable terms including clauses that give final decision-making rights to telcos, and that telcos would not entertain any demands for compensation.

Many customers have also questioned the "monthly rental", saying that there is no reasonable ground for imposing such a fee and called for its cancellation.

Li Litao, department manager with CNC Beijing Branch, told Beijing News: "About 200 countries around the world are charging 'monthly rental' for fixed lines. This is an international practice."

Wu Changqi, vice chief of Guanghua School of Management of Peking University, suggested: "Perhaps keep the 'monthly rental' but reduce costs for calls. This might be a better way of catering to customer demands."

Telcos respond

China Mobile, China Unicom, China Network Communication (CNC), China Telecom and China Railcom have assured customers that itemized monthly bills will be provided in future for improved pricing transparency.

Subscribers will be able to access their bills in one of several ways. For China Mobile subscribers for example, they can view their bills directly at China Mobile service halls and counters, online, by SMS or by calling the 12590 customer helpline. China Mobile bills detail costs incurred for local calls, long distance calls, SMS, Monternet (a SMS platform and data service) and GPRS (General Packet Radio Service).

In addition, China Mobile, China Unicom and China Railcom have promised double refunds to subscribers for wrongful charges.

With regard to phone card balances, the telcos have pledged to modify the rules. China Railcom for instance will provide a transfer service for its Shine Card, a pre-paid calling card. Credits can be transferred during the period of validity of the card or the transfer period can be extended depending on the customer's requirements. Card validity periods would also be modified based either on the par value of the card or on customer requirements.

As for inequitable terms of contract, the Beijing Municipal Administration of Industry and Commerce last November ordered telcos to adopt contracts that exclude unreasonable clauses like the ones described above.

(China.org.cn by Wang Zhiyong, Li Shen, Zhang Yunxing, March 15, 2006)