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(Nikkei BP Group)

(No.1 High-Tech News Site in Japanese)

  • Japan Telecom to Slash Phone Call Prices to U.S.
  • November 25, 1998 (TOKYO) -- Japan Telecom Co., Ltd., a common carrier, announced that it is reducing charges for international calls from Dec. 1.
    It aims to compete more effectively with DDI Corp.'s low-priced international call service. DDI entered the international call service market in October.

    Japan Telecom's new service will be available for calls to the United States, the United Kingdom, Brazil and Asian countries east of India. Its call charges to the United States will be equal to or less than those of DDI.

    DDI set a price for a daytime three-minute call to the United States at a rate 47 percent lower than that of KDD Co., Ltd., Japan's largest international telecom carrier.

    Japan Telecom's rate will be 240 yen (US$1.98) for a three-minute call during weekday daytime hours to the United States, which is the same as the rate set by DDI. However, if a customer applies for a discount service with Japan Telecom, the price is lower than that of DDI. DDI has no such discount service.

    Rates on calls to other countries remain comparatively higher than DDI's charges. However, callers can apply for Japan Telecom's discount service called WIDE, for charges that are discounted by 25 percent. They are the same or lower than the DDI rates, for a daytime call lasting three minutes.

    Japan Telecom merged with International Telecom Japan Inc. in October 1997. Its international phone call sales exceed those of KDD.

    Usually, KDD announces price reductions in international phone calls, followed by Japan Telecom and International Digital Communications Inc. However, KDD has not announced plans to implement countermeasures to DDI's moves. Thus, a long-established practice is starting to crumble in Japan's market for international telecom services.

    (Nikkei Communications)

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    Updated: Tue Nov 24 15:28:03 1998 PDT