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China Unicom took the lead in mixing and changing the communication industry
In the communications industry, China Unicom was one of the first to break through traditional barriers, introducing the Wangka service—often referred to as the “disruptor†among telecom operators. This move significantly challenged the conventional image of telecom companies and redefined customer expectations.
2017 turned out to be a pivotal year for China Unicom. From the opening of its community-based business hall at the start of the year to a series of major events that shook the industry, the company made waves. As leadership transitioned, many were eager to see what new strategies China Unicom would bring to the table. Xiaobian takes a closer look at these developments.
**Wangka Business – Traffic Is Not Inherently Expensive**
According to recent data, the number of users on China Unicom’s Big King and Small King cards has surged from 20 million in May to over 50 million. At the same time, the average monthly data usage per user (DOU) has been steadily increasing, yet the average revenue per user (ARPU) has dropped sharply. As of the first half of this year, China Unicom’s ARPU for 4G users stood at 66.5 yuan, down from 81.3 yuan during the same period last year—a decrease of nearly 20%.
Some critics argue that this is a strategic misstep by China Unicom, with its products being labeled as “satisfying but unprofitable.†By lowering data prices, they claim, the company is undercutting itself and competing directly with China Telecom.
However, Xiaobian believes this perspective is too short-sighted. Since the mobile internet era began, high data prices have always been a pain point for users. Many are forced to limit their usage due to cost concerns. While telecom operators may benefit in the short term, this approach hinders the long-term growth of mobile internet. After all, if users can’t enjoy 4G like they did with 2G, the purpose of upgrading networks is essentially lost.
Of course, rising DOU and falling ARPU put pressure on operators, increasing network maintenance costs and reducing revenue. In the long run, this could be detrimental. But under the broader trend of faster speeds and lower prices, telecom operators’ traditional “data services†are gradually becoming just a pipeline. When mobile data becomes as essential as water or air, price should not be a limiting factor. What operators need to do is adapt, not resist. They must find new sources of growth instead of clinging to outdated models.
In Xiaobian’s view, China Unicom’s continued push with Wangka is more than just a business strategy—it's a proactive self-revolution, taking the initiative to “go against the telecom.â€