China's telecom giants to close VIP lounges at airports, train stations  

三大电信运营商将关闭机场贵宾厅

File photo of a VIP lounges at a Shanghai train station. [Photo: Xinhua]

(ECNS) -- China's three state-owned telecom operators, China Mobile, China Telecom and China Unicom, said they would close all VIP lounges at airports and train stations across the country by Sept 30.

The decision was made after an order from the central government, Legal Evening News said, adding that the State-owned Assets Supervision and Administration Commission under the State Council had ordered the three telecom operators to cut marketing expenditures by 20 percent and that expenses need to be reduced over three consecutive years.

For China Mobile alone, the reduced marketing expense is approximately 24 billion yuan ($3.86 billion) over the next three years, and the three operators should save more than 40 billion yuan ($6.44 billion) on marketing in total.

Among various marketing costs to be cut, VIP lounges are an obvious target. A VIP lounge at Beijing Capital Airport may cost 4 million to 5 million yuan ($644,319-$805,399) annually, while one in a middle-tier city can cost more than 1 million yuan ($161,080).

Insiders also consider it a way of combating officials' extravagance.

China Telecom's airport VIP lounges mainly serve middle- and high-end users who spend more than 6,000 yuan ($966) a year. Besides free snacks, Wi-Fi and magazines, VIP customers can have boarding privileges via special access.

Many banks, including China Merchants Bank, Industrial and Commercial Bank of China, Agricultural Bank of China and Ping'an Bank, also opened similar lounges for their VIP consumers at airports and train stations, but they said they haven't received any order to close them.