Beijing Unicom Changes Phone Number Sales Strategy


On May 1, China Unicom's (NYSE: CHU; 0762.HK; 600050.SH) Beijing branch will begin to implement a new supply strategy in Beijing, unifying the data pool for all Beijing Unicom phone number providers, included among which are independent service halls, service halls within larger stores, sales agents, and Unicom's 10010 online information platform. As a result of the consolidation, sales agents will no longer be able to obtain preferred phone numbers locally.

In 2012 Beijing Unicom plans to add 8,000 more sales outlets, cooperating with more over-the-counter "Mom and Pop" stores, such as snack canteens and convenience stores in communities and residential areas. The sales policy for these new outlets will follow the same model as it has previously; after a new customer has been a stable user of the Beijing Unicom network for a few months, a certain proportion of the user's service plan will be paid back to cooperating stores in the form of a monthly rebate. The only fee the stores will have to pay will be in the form of a deposit of RMB 7,000 at the start of cooperation, in return for free storefront renovation, business broadband access, and a unified accounting system from Beijing Unicom. At present, however, the plan has not met expectations; few stores have been willing to pay the RMB 7,000 deposit up front for the sake of potential future "value-added income."


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