The recent announcement by NTT Docomo Inc. to cut its mobile phone charges "by 20 to 40 percent" starting next year — followed by moves by the two other major carriers, KDDI Corp. and SoftBank Corp., to also consider cuts to their service charges — came amid tightening pressure from the government on the mobile phone industry. In an unusually direct remark on the operation of private sector businesses, Chief Cabinet Secretary Yoshihide Suga said in August that there is room to lower mobile phone charges by 40 percent, citing the major carriers' generally higher profit margins than other sectors. The Internal Affairs and Communications Ministry has also set up an experts' panel to discuss the issue.
The government has no regulatory powers to guide mobile phone service charges. Whatever the background to the moves by the carriers, reduced rates on mobile phone services is good news for consumers, especially given that mobile phones have now become indispensable tools in people's daily lives. Media reports indicate, however, that Docomo's move to cut the service charges by offering new plans that separate service charges and handset payments may not result in significant cuts to users' overall expenses.
The mobile carriers should offer service plans that are simple and easy to understand — so customers can choose the service they need — and substantially reduce the net cost on the part of mobile phone users. The government, for its part, needs to keep up efforts to spur greater competition in the market in ways that improve services and cut costs.