Author: Tronserve admin
Thursday 5th August 2021 03:51 AM
Rakuten To Charge Less Than Half the Mobile Phone Fees of Its Rivals
Rakuten Inc's mobile phone unit is set to charge less than half the fees its rivals do for high data usage in an effort to boost subscribers when it launches services next month, sources close to the matter said Monday.
The Japanese e-commerce giant is considering a charge of 2,980 yen per month, a move that would intensify the price battle among mobile phone service operators, the sources said.
Rakuten will announce a list of prices for its new services on Tuesday, they said.
At present, NTT Docomo Inc basically offers a high data usage plan for 6,980 yen while the two other major Japanese wireless carriers, KDDI Corp and SoftBank Corp, provide such services for 7,480 yen each.
Rakuten will launch full-scale wireless communications services in April as the fourth operator in the Japanese mobile phone market, currently dominated by the three major players.
Rakuten first entered the mobile phone business in October 2014 as a virtual mobile network operator, using other wireless carriers' networks.
The company had initially planned to launch full-scale services with its own networks in October last year, but postponed it to April due to delays in installing network base stations.
Still, Rakuten's own networks are expected to provide services only in some major cities such as Tokyo, Nagoya and Osaka.
The company plans to rent KDDI's networks to offer nationwide services, but the fees to its rival could weigh on its profitability, possibly incurring red ink at the outset.
Rakuten Chairman and CEO Hiroshi Mikitani has said the company can provide wireless services at lower prices as it employs new technologies.
The company also envisions its entry into the mobile phone market will lead subscribers to its other businesses such as online shopping and financial services.