NTT Docomo Inc. unveiled a new budget smartphone plan that is considerably cheaper than those of its chief rivals on Thursday as Prime Minister Yoshihide Suga’s government relentlessly prods telecom giants to slash costs as many struggle to make ends meet during the pandemic.

Japan’s largest mobile phone carrier by number of subscribers said it will launch a new monthly plan that will cost ¥2,980 for 20GB of data and free domestic calls that last five minutes or less, the cheapest plan among the nation's three major carriers.

NTT Docomo President Motoyuki Ii said Docomo is targeting young users, a demographic with whom the carrier has been losing ground, with the new offer.