Under Pressure from Suga Government... Japanese Telecom Companies Announce Launch of Affordable Plans

KDDI and SoftBank to Launch Data Plans Offering 20GB for Under 5000 Yen

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] In response to pressure from the Yoshihide Suga Cabinet, Japanese mobile carriers have decided to launch affordable mobile phone plans. KDDI and SoftBank announced that they will offer plans with 20GB of data for around 5,000 yen per month (approximately 54,000 KRW).

According to NHK and other sources, KDDI and SoftBank announced new low-cost plans today. Both companies' new plans target the current 4G communication standard.

SoftBank revealed that starting in December, customers can use a plan with 20GB of data for 4,480 yen per month. Various discounts and consumption taxes are not included, and domestic calls within 10 minutes per call are free. SoftBank also plans to allow customers to switch carriers without changing their phone numbers without a fee (3,000 yen) and will accept applications online 24 hours a day.

KDDI offers a plan with 20GB of data for 3,980 yen per month. Including a service that allows up to 60 minutes of domestic calls, the price is 4,480 yen.

This move by Japanese mobile carriers to reduce mobile phone fees is interpreted as a response to pressure from the Suga Cabinet to ease household burdens. Prime Minister Suga has demanded price reductions for large data plans exceeding 20GB per month, citing that Japan’s mobile phone fees are excessively high compared to major countries, both before and after his inauguration last month. In addition to these two companies, Japan’s largest carrier NTT Docomo is also considering price reductions.

Katsunobu Kato, Chief Cabinet Secretary, welcomed the launch of the new plans by the two companies at a regular briefing today, stating, "Offering attractive pricing options is desirable for users." He also mentioned that the Ministry of Internal Affairs and Communications announced an "Action Plan" for reducing mobile phone fees the day before, adding, "If the plan is steadily implemented, competition among operators is expected to be further promoted."