With all three Chinese operators offering mobile 5G service in 2020, the challenge is now how to increase subscriber uptake as the impacts of the COVID-19 pandemic have shifted consumer sentiment and purchase behavior.
Strategy Analytics has conducted surveys to assess how consumers have responded to the pandemic and it influence on consumer plans to upgrade to 5G and which consumers are most likely to churn. In China, the impact of COVID-19 on plans to upgrade to 5G service has been predominantly negative with twice as many postponing or cancelling plans to upgrade compared to those who have decided to upgrade sooner than planned or had not planned upgrade but now plan to do so.
With a third of subscribers saying they are actively considering switching mobile service provider in the next three months for a lower cost plan due to COVID-19, creating attractive 5G service and device bundles will be essential to manage churn and attract new subscribers.