Japanese telecommunications companies are gradually moving to raise rates amid swelling costs for personnel and other expenses, marking a shift from the government-led price-cutting trend that began in 2020.

Desperate to ensure price hikes are accepted by subscribers, telecom carriers have improved their networks and service quality, and offered extra services.

KDDI in August lifted rates in existing price plans for its mainstay "au" mobile phone service by up to ¥330 per month.

KDDI underlines its higher network quality that allows connections even in areas outside its own service range, such as in mountainous areas, through expansions to its service to allow direct linkups between smartphones and the Starlink satellite communication network operated by U.S. company Space Exploration Technologies, or SpaceX.

In June, NTT Docomo launched a high-price smartphone plan granting subscribers free access to sports video streaming service DAZN. And from October, Rakuten Mobile will offer a package plan offering access to U-Next's video streaming service.

In both cases, the costs for customers are lower than if they subscribe to the smartphone and streaming services separately. NTT Docomo and Rakuten Mobile are highlighting this as the key selling point.

This month, SoftBank will start new plans under its "Y!mobile" budget brand with monthly charges that are up to ¥693 more expensive. SoftBank aims to keep customers within the bloc of services provided by group companies, including by offering discounts to subscribers who pay their mobile phone bills with credit cards of affiliated mobile payment service provider PayPay.

"Our costs have been increasing for security and other measures," a senior SoftBank official said.

A survey conducted by Tokyo-based MM Research Institute in July showed the average monthly cost for mobile phone services stood at ¥4,117, about 15% lower than the ¥4,845 recorded in a survey in July 2021.

Still, an MM Research official expects mobile carriers to shift away from price competition, putting their rates on an upward trend.

Higher rates impose a burden on households. But the official said, "Since more funds will be available for capital investment, there will be advantages also to users on a long-term basis (in terms of service quality and other aspects)."