Rakuten cuts mobile fees for light users to maintain edge over bigger rivals

Jan 29, 2021 | News On Japan

Jan 29, 2021 (Japan Times) - There seems to be no end in sight for the price war among mobile phone carriers, with Rakuten Mobile Inc. unveiling a lower cost plan Friday in an effort to keep its edge over its powerful rivals.

Until now, Rakuten has been offering only one choice on price: unlimited mobile internet for ¥2,980 a month. But the firm now says it will lower the price depending on the amount of data used within the space of a month, saying the fee will even be free for particularly light users.

“When we came up with our unlimited plan at first, we were rather targeting heavy internet and smartphone users” with a simple offer, said Hiroshi Mikitani, who heads the e-commerce giant Rakuten Inc., which made its foray into the market as a fourth carrier last spring.

But with data showing that more than 60% of smartphone users actually use 5GB or less monthly, Mikitani says he felt the need to cater to light users as well.

“We need to provide a single plan for both heavy and light users. This is Rakuten’s mission.”

By effectively cutting the price, Rakuten will have to acquire more users to make a profit.

Mikitani says he expects the new pricing will attract new users and keep existing subscribers happy, adding that the timing for Rakuten’s mobile carrier business to turn a profit probably remains unchanged.

The past several months have been a tumultuous time for mobile phone carriers, as Prime Minister Yoshihide Suga’s administration has increased pressure on the three mega carriers — NTT Docomo Inc., KDDI Corp. and SoftBank Corp. — to lower monthly smartphone fees.

Source: Kyodo

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