How China Mobile responds to the user churn crisis and rebuilds its competitive advantage
In recent years, China Mobile has faced a severe problem of user churn. According to statistics, in February 2023 alone, China Mobile lost 510,000 subscribers, a staggering figure. As a leading enterprise in China's telecommunications industry, China Mobile has always been known for its large number of users, extensive network coverage and stable service quality. In the face of increasingly fierce market competition and changing user needs, China Mobile's advantages are gradually weakening. The problem of user churn has become a serious challenge that China Mobile needs to solve urgently.
The reasons behind user churn are complex and varied. Service quality issues are an important factor that leads to user dissatisfaction and churn. Some users reported that China Mobile's network often has problems such as instability and poor call quality, which affects normal use. At the same time, problems such as cold customer service attitude and low efficiency have also caused dissatisfaction among users. High-quality service is the basis for retaining users, and China Mobile still has a lot of room for improvement in this regard. The issue of package tariffs is also an important incentive for user churn. With the advent of the 5G era, users' demand for traffic is increasing, but China Mobile's traffic tariff is relatively high, and the price advantage is not obvious. At the same time, some problems such as hidden deductions and opaque package settings have also caused dissatisfaction among users. The tariff issue is directly related to the vital interests of users, and China Mobile needs to further optimize the tariff structure and improve the cost performance to attract and retain users.
In addition, the increasing competition in the market has also put great pressure on China Mobile. In recent years, competitors such as China Telecom and China Unicom have made efforts in terms of convergence packages and user experience, and have continued to eat into China Mobile's user base. Faced with the challenge of competitors, China Mobile needs to accelerate the pace of innovation and enhance its market competitiveness. At the same time, the overall trend of the communications industry is changing. The traditional call and data charging models can no longer meet the increasingly diverse needs of users, and digital transformation has become an inevitable trend in the development of the industry. China Mobile is lagging behind in transformation and innovation, and it is difficult to adapt to the pace of industry change. China Mobile's subscriber growth is also facing bottlenecks. After years of rapid development, China Mobile's user scale is close to saturation, and the space for new users is limited. In 2021, China Mobile's net increase in mobile subscribers accounted for only 2.88% of the total, and the growth momentum was obviously insufficient.
In the face of the user churn crisis, China Mobile urgently needs to take effective measures to reverse the situation and rebuild its competitive advantage. The primary task is to comprehensively improve the quality of service, take user needs as the guide, strengthen network construction and optimization, and ensure stable and reliable communication quality. At the same time, it is necessary to strengthen the construction of customer service team, improve service efficiency and level, and provide users with high-quality service experience. China Mobile needs to further adjust its tariff strategy and launch more flexible, diverse and cost-effective packages to meet the needs of different user groups. For old users, it can provide more discounts and rights to enhance user stickiness and loyalty.
China Mobile also needs to accelerate the pace of digital transformation and adapt to the development trend of the industry. Through technological innovation and business model innovation, we provide users with more intelligent and personalized services and improve user experience. At the same time, it is necessary to strengthen cooperation with Internet companies, expand the digital service ecosystem, and provide users with richer and more diversified service content. China Mobile also needs to enhance its core competitiveness, maintain its leading edge in network quality, technological innovation, service level, etc., and consolidate its leading position in the industry.
The problem of China Mobile's subscriber churn is a complex and systemic problem, which requires systematic measures from multiple dimensions. In the face of the severe market situation and fierce competitive pressure, China Mobile can only win the trust and support of users by facing problems head-on and having the courage to change. Through a series of measures such as improving service quality, adjusting tariff strategies, accelerating digital transformation, and enhancing core competitiveness, China Mobile is expected to reverse the unfavorable situation of user loss, rebuild its competitive advantage, and achieve sustainable development.