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Mobile phone number portability system starts+(Japan Economic Newswire Via Thomson Dialog NewsEdge) TOKYO, Oct. 24_(Kyodo) _ The number portability system for mobile phone users started Tuesday in Japan, with competition intensifying between NTT DoCoMo Inc., KDDI Corp. and Softbank Mobile Corp. to win customers. The three companies began accepting applications formally for the system, under which cellphone users can switch from one operator to another without changing their phone numbers. Attention is focused on whether there will be a major shift in the three firms' shares of the Japanese mobile phone market, which has about 94 million subscribers. At present, NTT DoCoMo, KDDI, known for its "au" brand, and Softbank Mobile, renamed from Vodafone K.K., have market shares of 56 percent, 28 percent and 16 percent, respectively. Internet conglomerate Softbank Corp. acquired the Japanese unit of Britain's Vodafone Group Plc earlier this year. The three started accepting advance applications from users in early September. With no apparent rush of people wanting to switch their carriers, market analysts had anticipated there might not be a big shift in subscribers from one service to another, citing high switching charges, the lack of cuts in basic fees and other factors. But Softbank Mobile made a surprise announcement Monday, setting off a price-reduction war in an attempt to grab a bigger share on the introduction of the number portability system. The new subscription plans announced by Softbank Mobile include a 9,600 yen monthly flat-rate system for unlimited domestic calls and short e-mails between its users, with no extra charges. The flat-rate system will be available for 2,880 yen a month -- a 70 percent discount -- indefinitely for customers who conclude contracts by Jan. 15. Masayoshi Son, president of Softbank and of Softbank Mobile, said at a news conference Monday that if NTT DoCoMo and KDDI decide to slash their service fees as a countermeasure, his company will announce additional discounts within 24 hours. The three mobile phone companies have set switching charges at roughly the same level -- 5,000 yen. In addition to the charges, customers are required to purchase new handsets if they switch operators. E-mail addresses used by mobile phone subscribers and long-term fee discounts available to them cannot be transferred under the system. Softbank Mobile, however, said it will take over long-term fee discounts, depending on the length of contracts with the two rivals. Since the number portability system was first introduced in Singapore in 1997, it has been implemented in more than 20 countries and regions, including Hong Kong, the United States, South Korea, the Netherlands and Norway. Copyright 2006 Kyodo News International, Inc. |