Tokyoites pay the highest mobile phone charges of six major cities around the world, shelling out 8,175 yen for the large data allowance of 20 gigabytes per month, according to a report on fiscal 2019 mobile phone charges released by the Internal Affairs and Communications Ministry on Tuesday.
In response to the introduction of the revised Telecommunications Business Law last October, mobile phone rates in Japan are falling, but the report showed they still remain high in international terms.
The survey covered six cities -- Tokyo, New York, London, Paris, Seoul and Dusseldorf in Germany -- and compared the prices of companies with the largest market shares, such as NTT Docomo Inc. in Tokyo.
The average price in Tokyo fell 467 yen from the previous year, but was still more than three times that of London (2,700 yen), which had the lowest charge.
The average price for 5 gigabytes was 6,250 yen in Tokyo, which is 1,312 yen lower than the previous year, but still the second highest after New York's 6,865 yen. In London and Paris, the average prices for 5 gigabytes were less than 2,000, yen with the report highlighting that fees in Japan and the United States remain high.
Behind the higher rates in Japan is the fact that the three major carriers -- NTT Docomo, au by KDDI Corp. and SoftBank Corp. -- have maintained high market shares. According to the ministry, lower prices overseas are the result of new carriers entering the market and fierce competition with low-cost smartphone makers.
The revised law that went into effect last October bans set discounts on handset prices and communications charges, in principle. In April, Rakuten Inc. entered the mobile phone market by launching a plan that allows unlimited use of its own high-speed service for 2,980 yen (excluding taxes).
The major focus now is whether such moves could lead to further reductions in mobile phone fees in Japan.
"[Japan's rates] are still high compared to other countries," Communication Minister Sanae Takaichi said at a press conference after a Cabinet meeting Tuesday. "We'll strive to reduce costs through the development of a fair competition environment."
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