(Nikkei BP Group)
(No.1 High-Tech News Site in Japanese)
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| Ministry Orders NTT DoCoMo to Alter Telecom Charges
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January 28, 1999 (TOKYO) -- The Ministry of Posts and Telecommunications
on Jan. 22 ordered NTT Mobile Communications Networks Inc. (NTT DoCoMo)
to change the discount rates for its monthly fixed charges called "Family
Discount."
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This was the first such order issued by the ministry. NTT DoCoMo is Japan's
largest operator of mobile phone services.
NTT DoCoMo will change the discount rates in March. However, some customers
using the Family Discount plan may suffer some disadvantages, the company
said.
Family Discount was started in December 1998. For users with more than
one mobile phone or personal handy-phone system (PHS) subscription under
the same holder's name, a 5 percent discount is applied to the first
mobile phone plus a long-term contract discount. Additionally, a flat
15 percent discount is applied to the second through fifth mobile phones
or PHS handsets.
The ministry regards as questionable the discount rate to be applied
to the second through fifth mobile phones. As the basis for the 15 percent
discount, NTT DoCoMo cites the economies of scale in operating costs
through long-term use, but the discount rates are not in proportion
to the length of a subscription period. For that reason, the ministry
decided that the scheme is a "discriminatory rate" in favor of Family
Discount users.
NTT DoCoMo argued that the methods of refunding revenues from discount
services should be left to the judgment of business enterprises, and
that issuing orders to change the rates goes against the current of
deregulation.
The ministry's order was issued on the basis of the new method of application
of regulations on telephone charges stipulated in November 1998. However,
no clear criteria for issuance has been seen.
Commenting on this vague situation, an NTT DoCoMo official said, "In
order to avoid the risks of receiving orders for changes, common carriers
are likely to talk to the Ministry of Posts and Telecommunications before
filing reports on telephone charges, yet that could be an obstacle to
free establishment of fees." The official requested that clear-cut guidelines
be established.
"The criteria will gradually take a definite form as we encounter actual
cases, including this one," a ministry official said.
(Nikkei
Communications)
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