Softbank Punished Again over Excessive Smartphone Discounts

Politics Economy

Tokyo, Dec. 4 (Jiji Press)--Japan's communications ministry imposed an administrative penalty on Softbank Corp. on Tuesday for offering excessive discounts related to smartphone sales.

The ministry asked Softbank to report details of a discount program in question as well as preventive measures by Dec. 21.

In a sales promotion campaign on Sept. 6, Softbank, the mobile phone unit of Softbank Group Corp. <9984>, offered a discount of 1,000 yen in monthly communications fees for customers who concluded subscription contracts.

In some cases, customers who bought certain smartphone models priced at some 30,000 yen are provided with discounts in communications fees that more than offset handset prices, according to the ministry.

Under guidelines set by the telecommunications business law, the ministry calls on mobile phone carriers to avoid excessive discounts related to handset sales.

[Copyright The Jiji Press, Ltd.]

Jiji Press