Despite years of government-mandated "speed upgrades and fee reductions" in China's telecom sector, many consumers find themselves locked into expensive mobile plans they struggle to escape. A recent investigation by state media highlights a range of tactics, from hidden contracts to discriminatory pricing, that make downgrading a service a frustrating and often costly ordeal for long-term subscribers.
The Struggle to Downgrade
For many users in China, upgrading a mobile plan is a simple process, often accomplished with a single phone call. However, the reverse is proving to be a significant challenge. Consumers report encountering numerous obstacles when attempting to switch to a cheaper, more suitable package. A common tactic is the restriction of the most attractive, low-cost plans to new customers only, forcing existing subscribers to either keep their expensive plans or abandon their long-held phone numbers. This practice effectively creates a two-tier system where loyalty is penalized. Customer service representatives, often incentivized to retain high-value accounts, may steer users toward less favorable options or suggest opening a new line entirely, rather than facilitating a straightforward downgrade on an existing account.
Reported Consumer Grievances:
- Plan Downgrade Obstacles: New-user-only discounts, unhelpful customer service steering, requirement to change phone number.
- Hidden Contract Traps: "Free" phone/device offers binding users to 24-36 month high-cost plans (e.g., CNY 99 to CNY 159). Early termination fees apply (e.g., CNY 40 per remaining month).
- Misleading Promotions: "Free" device actually a lease requiring return; "Gift" actually a "device调试费" (debugging fee). Large advertised data caps comprised mostly of restricted "定向流量" (定向流量).
- Target Demographic: Elderly users frequently reported as targets for opaque contract schemes.
The Hidden Cost of "Free" Offers and Contracts
A more insidious barrier is the proliferation of long-term contracts bundled with services or devices, the full terms of which are frequently not clearly communicated at the point of sale. Users are often enticed by offers of "free" smartphones or home networking equipment, only to discover later that they have unknowingly committed to a 24 or 36-month contract with a significantly higher monthly fee. Attempting to break this contract to change plans triggers substantial early termination fees, sometimes calculated as a monthly penalty multiplied by the remaining contract period. This makes downgrading financially nonsensical, as the penalty can negate any savings from a cheaper plan for months or even years. These tactics appear to disproportionately target elderly users, who may not fully understand the long-term financial commitments involved in these "gift" promotions.
Regulatory Gaps and Consumer Vulnerability
The core issue lies in the violation of consumer rights to informed consent and free choice, as protected under Chinese law. Sales personnel, driven by commission structures tied to selling high-value plans, have an incentive to obscure key details. Practices such as advertising massive data allowances that are predominantly "定向流量" (restricted to specific apps) or throttling speeds after a certain usage threshold are common. While regulators like China's Ministry of Industry and Information Technology (MIIT) have launched initiatives like the "明白办、放心用" (Transparent Service, Assured Use) campaign and secured promises from operators to simplify plans and process changes within 48 hours, enforcement remains inconsistent. The burden of proof and the effort required to navigate customer service complaints often fall heavily on the individual consumer.
Regulatory Context & Industry Response:
- Violated Regulations: Consumer Rights Protection Law (right to choose), Telecommunications Regulations (cannot restrict user choice).
- Regulatory Action: MIIT's "明白办、放心用" (Transparent Service, Assured Use) campaign. Operators pledged to simplify plans and execute changes within 48 hours.
- Industry Practice: Sales staff commissions tied to selling high-ARPU (Average Revenue Per User) plans, creating incentive for "推高不推低" (promote high, not low) behavior.
The Path Toward Transparent Service
Experts argue that lasting change requires a multi-faceted approach. Regulatory bodies need to move beyond guidelines and enforce stricter, more detailed standards for sales transparency, particularly around contract terms and penalties. Regular audits and stiffer penalties for violations are necessary. Simultaneously, a fundamental shift in how telecom companies are evaluated is needed—moving the focus from sheer subscriber acquisition and average revenue per user (ARPU) to include customer satisfaction and retention metrics. For consumers, the advice is to exercise extreme caution, meticulously read all terms before signing, and retain evidence of all promotional claims. Ultimately, for a service as essential as telecommunications, trust must be rebuilt through genuinely transparent pricing, fair policies for all users, and a commitment to service over short-term revenue tactics.