Mobile carrier NTT Docomo Inc. said Thursday it plans to review its two-year smartphone contracts by next March, a day after rival KDDI Corp. pledged to change its contracts in response to government warnings.

SoftBank Corp. is considering a similar move.

For customers receiving discounts on monthly fees under the two-year contracts, Japan's three major carriers have required subscribers to pay penalties if they cancel their contracts prematurely. Customers have also had to pay one month's worth of fees if they choose to cancel the contracts in the two months following the end of the two-year term.