China's cellcos are ramping up their LTE procurement efforts ahead of the allocation of operating licenses. But according to a new report, they may have trouble convincing customers to pay a 4G premium.
A survey of Chinese consumers conducted by Strategy Analytics indicates that less than 10% would be willing to pay for a 4G network.
The research firm said this is the case even though 80% of respondents are not satisfied with the speed of their current mobile network.
“The low trust that Chinese consumers have with their mobile service providers is the main reason for lack of willingness to pay for 4G networks,” Strategy analytics analyst Alvin Wu explained.
“Dissatisfaction with their existing 3G network speed has contributed to the negative expectations that consumers have [for] 4G.”
But this also suggests that Chinese consumers are more likely to respond to marketing emphasising faster connectivity and better coverage, he added. “Chinese operators need to devote more effort on providing previously promised services and improv[ing] Chinese consumers’ level of satisfaction.”