Lower Penalties Eyed for Mobile Phone Contract Termination

Politics Economy

Tokyo, June 8 (Jiji Press)--Japan's communications ministry is planning to lower penalty charges imposed by mobile phone service providers on early contract termination from the current 9,500 yen to 1,000 yen or under, it was learned Saturday.

The reduction is designed to make it easier for users to switch mobile phone carriers, encouraging competition.

The ministry will also propose to limit discounts on handset prices to 20,000 yen, informed sources said.

The proposals come after the revised telecommunications business law was enacted in May. The new law, aimed at lowering mobile phone fees, requires changes to the current system, such as mandating the introduction of pricing schemes that separate handset purchase costs from monthly communications fees.

The proposed rules are part of the communications ministry's efforts to revise a ministerial ordinance to reflect the new law. The ministry will present the proposals to an expert panel on Tuesday and its discussions will be used for revising the ordinance.

[Copyright The Jiji Press, Ltd.]

Jiji Press