Consumers are concerned that they won't receive a fair exchange rate when they are called on to trade in their magnetic-strip phone cards for integrated circuit (IC) cards starting in December.
China Telecom is retiring magnetic cards in favour of IC cards in an effort to modernize the system. The move was approved by the Ministry of Information Industry, which also ruled that the IC cards issued in the transition will have no expiration date.
China Telecom Deputy General Manager Zhang Jiping sought to assure the public that the substitute IC cards would be issued at a fair exchange.
But Beijing resident Yang Jiling said he isn't so sure.
"I purchased the magnetic cards at full price, but IC cards are often sold at big discounts," Yang said. "The value of the two don't jibe."
The trade-in period starts on December 1 and will last for four months.
The change marks the end of an era. Magnetic cards became popular in China in the early 1990s when most could not afford mobile phones. Urban dwellers could use them to make calls from phone booths on the streets instead of paying outrageous sums to local grocers for calls.
Now China Telecom says magnetic cards are outdated, cost more to produce and are subject to technical glitches.
IC cards are more modern and applicable, especially as phones activated by magnetic cards are being produced less and less.
China Telecom has been removing public phones from the streets anyway. The number of magnetic-activated phones is now 20,000, a sharp drop from the peak of 70,000.
By 2003, magnetic-activated phones will be removed altogether. China Telecom says about 40 million magnetic cards are in consumers' hands now.
Many of these users are upset by the coming change.
Some consumers are considering a lawsuit. Beijing attorney Gu Liaohai said China Telecom was arrogant in refusing the public a chance to comment before the decision was made.
The telecom company should provide more choices, including refunds in addition to exchanges, and give consumers a greater voice in solutions.
China Telecom could not be reached for comment on Sunday.
The company is facing other litigation, too, as 85 consumers have complained about problems with magnetic cards and services. The case is pending.
(China Daily October 22, 2001)
