DoCoMo considering plan to reduce handset subsidies, cut calling charges

3 Oct 2007

NTT DoCoMo today announced it is considering plans to stop subsidising handset prices via higher call charge plans, although no concrete decisions have as yet been made. According to reports in the Nikkei daily, DoCoMo is looking to cut charges by between 20% and 30% by end-2007 while raising handset prices. 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.

Yesterday, TeleGeography’s CommsUpdate reported that Japan’s second largest mobile operator by subscribers, KDDI Corp, is also planning 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.

Japan, KDDI (au), NTT DOCOMO