The government said Tuesday it will require mobile phone operators this fall to drastically cut cancellation fees for users who quit in the middle of a two-year contract to promote competition and lower the country's relatively high communication charges.
Under the plan approved by the communications ministry’s panel, major mobile phone operators will be obliged to cut cancellation charges by 90 percent to ¥1,000 or less from the current ¥9,500, enabling users to switch companies more easily.
The new regulations are expected to prompt mobile phone operators to overhaul their price plans, as they will only be able to offer discounts of up to ¥170 on monthly communication fees for users who purchase mobile phones under a two-year contract.