Japanese Mobile Carriers Reviewing 2-Year Commitment Deals

Economy

Tokyo, July 18 (Jiji Press)--Japan's three largest mobile phone operators are looking to revise their existing contract schemes, in which basic fee discounts are offered to customers on the condition that they use their carriers' services for two years, informed sources have said.

The moves come after the communications ministry last month instructed NTT Docomo Inc. <9437>, KDDI Corp. <9433> and Softbank Corp. to correct the two-year commitment schemes, which the ministry blames for hampering consumers' freedom of choice.

Under their schemes, each of the three carriers currently collects 9,500 yen in penalties from customers for canceling their contracts within two years of subscriptions.

NTT Docomo President Kazuhiro Yoshizawa, in a recent interview, expressed the company's readiness to revise its two-year commitment scheme, while also suggesting that it would be desirable for the three carriers to take concerted action on the issue.

"Different responses by the carriers could confuse users," he said.

[Copyright The Jiji Press, Ltd.]

Jiji Press