Core Viewpoint - Citigroup reports that China Mobile, China Telecom, and China Unicom will adjust the tax category for value-added telecommunications services starting January 1, 2026, which will increase the VAT rate from 6% to 9% for affected services [1] Group 1: Tax Adjustment Impact - The services affected by the tax adjustment include mobile data services, SMS, multimedia messaging services, and broadband internet services [1] - The reclassification of these services as basic telecommunications services is expected to have a potential impact of approximately 3% on service revenue, which constitutes a significant portion of the companies' total revenue [1] Group 2: Market Response and Performance Indicators - Citigroup believes that due to market competition and stable demand, operators are unlikely to pass the increased tax burden onto consumers through adjustments in data service pricing [1] - There may be a degree of deleveraging effect if service revenue declines, but it is considered premature to conclude on the potential impact on dividend distribution, with more information expected from the financial reports to be released in March [1]