Chinese Telecom Giants Accused of ‘Customer Killing’
China’s three state-controlled telecom carriers — China Mobile, China Telecom, and China Unicom — are facing renewed scrutiny after a scathing editorial from leading media outlet The Paper accused them of systematically overcharging long-time loyal customers while offering steep discounts to new users, a practice known in Chinese as “customer killing” (杀熟). The editorial, published on June 9, 2026, has ignited a wave of commentary from state-affiliated media outlets and renewed calls for regulatory enforcement.
The Investigation: Four Cases, One Pattern
An accompanying investigative report by journalist Wu Yuxin documented multiple cases across all three major carriers, revealing a consistent pattern of price discrimination against existing subscribers.
A 12-year China Mobile customer identified as Ms. Li pays 79 yuan ($11) per month for just 5GB of data and 90 minutes of calls — a plan she described as barely usable in an era of data-heavy apps. When she called customer service seeking a better deal, she was repeatedly denied. Only after threatening to switch carriers and file a complaint with the Ministry of Industry and Information Technology (MIIT) did the carrier offer her an additional 30GB of data at no extra cost. “If they can ultimately offer a better plan, why not provide it on the first call?” she asked.
A Guangdong user with nearly 20 years of China Mobile service faced an even starker disparity. She pays 159 yuan per month for 400 minutes and 80GB of data, while her friend on a 39 yuan plan receives 480 yuan in phone subsidies plus 110GB of data. “Others can get this value for 39 yuan, but I, a long-time user paying 159 yuan, don’t deserve it?” she said. “Are long-time users just cash cows to be harvested?”
Similar cases emerged at China Unicom and China Telecom. A five-year China Unicom user in Heilongjiang discovered a better-value plan but could not switch until multiple complaints secured him a 30% discount. A Suzhou China Telecom user who paid 245 yuan monthly for a decade disconnected her broadband in frustration but remained trapped by contract obligations.
Systemic ‘Retention Mechanism’ Exposed
The investigation uncovered a deliberate internal system designed to hide discounts from existing customers. A frontline sales clerk told reporters: “Our counters have recording devices. If a user triggers the ‘number portability’ retention keyword in conversation with me, only then can I tell them about discounts. If the customer doesn’t ask, we can’t proactively tell them.”
An industry insider confirmed the policy: “In principle, we want users’ plans to ‘only go up, not down.’ If they want cheaper, it’s handled case by case.” The Worker’s Daily commentary noted that this mindset reflects carriers counting their “small revenue account” while ignoring the “big development account” of the broader social economy.
Regulatory Efforts Falling Short
The revelations come despite multiple regulatory interventions. In April 2025, the MIIT launched the nationwide “Understand Clearly, Use with Confidence” campaign, requiring carriers to publicly list all available pricing plans and prohibiting sales of unlisted plans, as documented on the government’s official website. By July 2025, all four major carriers — including China Broadcasting Network — had publicly committed to the new standards. New regulations taking full effect on January 1, 2026, mandated that carriers allow long-time users to switch to lower-cost plans within 48 hours.
Yet consumers continue to report that these rules are not being honored. The investigation found that carriers have not fully implemented price transparency requirements, and the 48-hour plan downgrade rule is routinely ignored.
Why the Practice Persists
Telecom and internet analyst Ma Jihua pointed to structural factors: carriers prioritize revenue and profit margins, viewing long-term users as less price-sensitive. Internal performance metrics reward upselling and revenue growth, not customer satisfaction. “If telecom operators include long-time user satisfaction as a core performance indicator, I believe the situation would greatly improve,” Ma said.
High switching costs also play a role. Phone numbers are tied to banking, social media, and government services, making it difficult for users to switch despite the number portability system introduced in 2019. The 21st Century Business Herald noted that many frustrated consumers resort to downgrading their old numbers to the cheapest “number preservation” plan and opening new lines to access promotional pricing.
Broader Implications
The practice disproportionately affects older and less tech-savvy users who may be unaware of their rights or unable to navigate complex complaint procedures. It also undermines consumer trust in state-owned enterprises and runs counter to government efforts to boost domestic consumption through lower digital service costs.
As the Worker’s Daily argued, telecom service quality directly affects “the convenience of people’s digital lives and their enthusiasm for digital consumption, especially in the context of vigorously boosting consumption.” The editorial concluded that carriers’ focus on short-term revenue over long-term trust requires “serious rectification.”
What to Watch For
With multiple state-aligned media outlets now calling for action, pressure is mounting on the MIIT to launch a special investigation or enforcement action. The key question remains whether the latest round of media scrutiny will translate into meaningful enforcement — or whether China’s long-time telecom users will continue to pay a loyalty tax that regulators have repeatedly promised to eliminate.