(Nikkei BP Group)
(No.1 High-Tech News Site in Japanese)
| IDC Cuts International Calling Rates; Competition Intensifies
December 9, 1998 (TOKYO) -- International Digital Communications Inc.
said it will reduce its overseas telephone calling rates starting on
|This latest rate cut follows a similar move made by DDI Corp., and the
Dec. 1 cuts made by Japan Telecom Co., Ltd. DDI entered the overseas
telephone service market in October this year. The remaining service
competitor, KDD Co., Ltd., announced already that it will cut its rates
by the end of December.
The cuts announced by IDC this time are applied to calls between Japan
and 23 countries and regions, including the United States, Britain,
Korea, China and Brazil. The average of the rate cuts is 9 percent,
while the largest cut is 47.1 percent.
After the rate changes, IDC's rates will be about the same as those offered
by Japan Telecom. For example, a call to the United States will be 240
yen (US$2) for 3 minutes during the day time, 210 yen (US$1.75) for
night time and 180 yen (US$1.5) for late night and early morning hours.
DDI's rate card is not computed in the same fashion. However, it charges
the same amount for a 3-minute call to the United States.
If a caller takes advantage of the "IDC Family Plus" discount service,
the rates are even lower. However, except for the late night and early
morning hours, the company's discount rate is lower than Japan Telecom's
In comparison with DDI, which does not have a discount service, DDI offers
slightly lower rates for the day time and night time, except for calls
to the United States.
According to the mid-term settlement of accounts for fiscal year 1998
announced earlier, DDI, Japan Telecom, KDD and IDC all suffered a decrease
in profits in the two-digit percentage points. Under such a severe business
environment, accelerating competition for lower calling rates is likely
to pinch the players.
Related story: Japan
Telecom to Slash Phone Call Prices to U.S.
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