A panel of experts at the Internal Affairs and Telecommunications Ministry is discussing ways to reduce mobile phone fees and is expected to issue its recommendations by the end of the year. The panel was created after Prime Minister Shinzo Abe called for reducing the burden that cellphone fees have on households, which may be a political gesture aimed at voter support for the Upper House election next year. But aside from his intention, the panel should explore ways to maximize consumer interests and lead to the introduction of a fee structure that is diverse, transparent and equitable.
At a September meeting of the Council on Economic and Fiscal Policy, Abe called the heavy burden of mobile phone bills on family expenses a "big problem" and instructed communications minister Sanae Takaichi to consider ways to cut such fees. According to the ministry, the percentage of fees paid for mobile phone services in household expenses has been on the rise as smartphone usage has increased. In 2004, an average wage earner's family of two or more members paid a mobile phone bill of ¥8,200 per month, accounting for 2.5 percent of household spending. In 2014, the bill increased to ¥12,200, or 3.9 percent of the monthly family expenses.
As the mobile phone service market is effectively dominated by three major operators — NTT Docomo, KDDI and SoftBank — it is rare that charges are reduced even though rules for setting fees have been liberalized. Choices for consumers are often limited. At mobile phone shops, salespeople try to sell customers optional services that they may not need, and consumers who are not familiar with the functions of mobile phones can easily be persuaded to subscribe.
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