China Broadnet's torrid debut

It's been a torrid first year for China Broadnet, the newest Chinese telco. Backed by the cable TV industry, the fledgling operator has struggled to get a foothold in the over-served 5G market, impeded by poor network performance and customer service.

By the end of April, it had claimed 8.7 million 5G customers, many of them attracted by steep discounts of up to 40%. The company said it had completed full network coverage in 31 provinces, with 480,000 700MHz basestations deployed, as well as being able to access China Mobile's 3.8 million 4G and 5G basestations.

But on social media many customers have been questioning Broadnet's understanding of "full coverage."

A news story widely reposted on Tuesday morning detailed many of their complaints under the headline "China Broadnet's 'sorrowful' first year." By mid-afternoon the article was unavailable, presumably removed at the request of government censors.

Users repeatedly complained about the poor signal and weak coverage, in particular indoors. One said: "The outdoor signal is okay, but there is no service when you enter the office building, while at the same time, China Mobile's SIM has a full 5G signal."

"Can't cancel my account"

The other major gripe was the dysfunctional customer service. Users posted about the difficulties in contacting customer service and the poorly trained, unhelpful staff. Many complained there was no way to close down their account.

On the Black Cat complaints forum, one subscriber said: "I want to cancel this mobile phone card but Broadnet really can't do it. There is no online account cancellation. There are almost no [physical stores] so I have no choice but to come here to complain."

Experts now question China Broadnet's target of 50 million customers in three years. One industry analyst, Ma Jihua of Darui Management Consulting, said the operator "started late, did not move fast, and did not have a strong sense of presence in the market."

The deeper problem is that this newcomer with no mobile industry experience and slender financial backing is in a saturated market. According to figures from the Chinese Ministry of Industry and Information Technology, 1.2 billion people already have some kind of 5G subscription – around 80% of the population.

There's not a lot of space for a new brand, especially one with chronic network problems.

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As a privately held firm, China Broadnet won't be disclosing its financial performance any time soon. But its small customer base and huge operating expense, including its extensive commercial service agreements with China Mobile, guarantee it is already deep in the red.

Unless something changes, this will end in tears.

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— Robert Clark, contributing editor, special to Light Reading