KDDI to cut charges by up to 30% on new cellular plan

2 Oct 2007

Japan’s second largest mobile operator by subscribers, KDDI Corp, is to launch a new service plan next month which will reduce call charges by around 30% and raise the cost of a handset by JPY20,000 (USD173) compared with its current, equivalent plan. According to Thomson Financial citing an unconfirmed report in yesterday’s Nikkei business daily, the move has been prompted by a Ministry of Communications recommendation that mobile network operators should no longer subsidise the price of new handsets with higher call charges. Currently, companies such as KDDI tend to offer stores a rebate of around JPY36,000 per handset sold, meaning some models can cost as little as JPY1 in the shops. It is understood that NTT DoCoMo intends to follow KDDI’s lead and will announce its plans soon.

Japan, KDDI (au), NTT DOCOMO