China's Telecom Operators Halt Device Financing Installment Plans

China's three major telecom operators—China Mobile, China Telecom, and China Unicom—have suspended their device financing installment services, effectively ending promotions that offered new phones and devices with no upfront cost. The move comes after widespread customer complaints regarding these installment plans.

These services, including China Telecom's Chenfenqi, China Unicom's Wofenqi, and China Mobile's Hebao Xinyingou, were often marketed as "0 yuan phone" deals. However, they functioned as loan agreements where the cost of the device was factored into monthly mobile bills. Reports indicate that some retail outlets aggressively pushed these plans, leading to customers unknowingly entering into credit contracts. Delayed payments could negatively impact consumer credit scores.

Customer service representatives from all three operators have confirmed the suspension of new installment plan applications, effective September 24. Existing contracts remain unaffected and will continue under their original terms. The operators have stated that the services are being paused for "upgrades" or "product optimization," but have not provided a timeline for their reinstatement.

The suspension is expected to impact the sales performance of the operators' physical retail stores, where these installment plans were a significant sales driver. The companies stated the pause is aimed at improving service experience and safeguarding customer interests.