The nation's three major telecommunications network operators are poised for fierce rivalry with each other over the introduction of the next-generation 5G communications standard.
According to NTT Docomo Inc., KDDI Corp. and SoftBank Corp., the mainstay rate plans for individual customers are set at levels from 500 yen to 1,000 yen higher than the current 4G plans.
The three firms are expected to face challenges as their 5G service operations are on a trial basis for the time being in limited areas where 5G is available.
They plan to improve base station networks and offer content that allows users to enjoy the benefits of 5G.
KDDI, which launched its 5G service for individual users Thursday, is Japan's only telecommunications network operator to offer a monthly plan with unlimited data. The operator of the au brand sets the unlimited data package at 8,650 yen plus tax per month.
"I want users to know the new value of 5G," KDDI President Makoto Takahashi said at a press conference broadcast online.
KDDI and SoftBank will discount the price difference between the 4G and 5G rate plans for a limited period, narrowing the price differential among the three companies.
"They have launched practical trial services, eliminating additional financial burdens for users using 5G," an analyst said.
The companies will focus on differentiating their services by taking advantage of 5G, which is up to 100 times faster than 4G networks and enables large amounts of data to be transmitted to multiple terminals simultaneously. Translating that power into benefits to offer consumers will be their biggest challenge, observers said.
KDDI has unveiled a service using augmented reality (AR) technology, which, for example, can make the contents of a picture book appear as three-dimensional images hovering in the phone's screen's view of the real world.
The company will also work with major video-streaming service provider Netflix to enhance KDDI's own original programs.
NTT Docomo, for its part, plans to focus on the distribution of original games with three-dimensional vision that require a large volume of data, using mixed reality (MR) technology, among others.
SoftBank aims to promote the distribution of videos that allow users to enjoy sports and live music events from multiple vantage points at the same time.
However, 5G is typically only available in limited areas, mainly in urban areas. A major challenge for the future is the development of base stations. Compared with 4G networks, 5G waves are more easily blocked by buildings and the like, and therefore require more base stations than 4G. It is expected to take four to five years to complete the 5G network system nationwide, the observers said.
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