KDDI plans to introduce a new pricing system in November under which it will reduce call charges by about 30 percent and increase the price of mobile phones by about 20,000 yen, it has been learned.

The company had originally planned to introduce the system next spring, but decided to bring the date forward. Including the basic charge, the overall fees for standard calling plans will be reduced by about 20 percent.

NTT DoCoMo is considering a similar pricing system, and could also introduce a new system as early as November.

Currently, KDDI pays stores a rebate of about 36,000 yen for each phone they sell, and in exchange, handsets are offered to consumers at prices as low as 1 yen. The company reclaims these rebates by adding the cost to call charges. This system is advantageous for people who frequently change phones, but those who use the same handset for a long time lose out due to the relatively high call charges.

Because of this, the Ministry of Internal Affairs and Communications advised mobile phone companies to introduce pricing systems that separated the costs of handsets and call charges.

Under the new pricing system, KDDI will reduce the rebates paid to stores. As a result handset prices will increase, but the call charges under standard plans will go down from 14 yen for 30 seconds to about 10 yen. Users buying new handsets or entering new contracts from November onwards will be able to choose new price plans. The current pricing system will be maintained.

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cheap plan by KDDI
written by cheap pay as you go phones , August 27, 2008

It is just for the consumer satisfaction. Calling costs are counterbalanced in mobile phone price.

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cheap plan
written by cheap pay , August 27, 2008

cheap plan by KDDI with Latest Mobile Phones

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