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March 24, 2020
Business

China’s mobile carriers have been hit by a rare slump across the industry, a sign of the toll the pandemic has taken on people who can no longer pay for what they once saw as a necessity.

China Mobile, one of the world’s largest cellular providers, lost more than 8 million users throughout January and February, the company reported. China Unicom lost 7.8 million subscribers over the same period, while China Telecom lost 5.6 million subscribers in February, the companies reported.

The relentless user growth over the years has served as an economic barometer in China. The number of mobile users in the country is larger than its entire population, with many residents, especially migrant workers, keeping separate numbers for work and personal use.

The unusual drop in subscribers could indicate the scale to which China’s labor market has been pinched by the outbreak, analysts say.

“People lost their jobs, they have to stay home, they have to be quarantined and have nowhere to go,” said Dickie Wong, executive director of research at Kingston Securities Limited. “They have to cancel their mobile subscription services.”