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)