Nippon Telegraph & Telephone Corp.’s two regional arms have decided to cut the monthly fees of their Flet’s fiber-optic Internet connection services, sources said Wednesday.
Through the fee cuts, the two units — NTT East Corp. and NTT West Corp. — aim to lure customers at a time when demand for the fiber-optic services has been shrinking amid the spread of smartphones, according to the sources.
NTT East will offer discounts to customers who resubscribe to the Flet’s service for two years between next month and April 2013. The monthly fee will be cut to below ¥3,700 from the regular fee of ¥5,460 for those living in single-family houses and to ¥2,800 from ¥3,000-¥4,000 for those living in apartments.
NTT West will cut its fee for both existing and new customers living in single-family homes from the current level of ¥5,670 according to the length of their subscriptions. The fee will be reduced to below ¥4,600 for the first two years and then will gradually come down further. In the eighth year, the fee level will be less than ¥3,800.
On Nov. 8, the two companies said they aim to achieve combined net Flet’s subscription growth of 1.3 million in fiscal 2012, which ends next March, down from the previous target of 1.45 million.