Japan Govt OKs Bill to Separate Handset Prices from Communications Fees

Politics

Tokyo, March 5 (Jiji Press)--The Japanese government adopted at a cabinet meeting on Tuesday a bill calling for obliging mobile service providers to separate handset prices from communications fees.

The separation is expected to allow consumers to choose reasonable rate plans more easily and promote price competition among service providers, eventually leading to cuts in mobile phone bills.

"We believe enhanced competition will lead to lower communications fees," communications minister Masatoshi Ishida told a press conference.

Current mobile rate plans in Japan require users to buy handsets and subscribe to communications services all together.

Many rate plans offer handset discounts for users who sign up for communications services for certain periods of time. As such discounts are funded by communications fees collected from users, the fee structure has been said to be contributing to keeping mobile rates relatively high compared to other countries.

[Copyright The Jiji Press, Ltd.]

Jiji Press