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Japanese carriers push pricing competition

TOKYO-NTT DoCoMo, the largest mobile operator in Japan, will launch a flat rate mobile service in the second quarter of 2003, the company said on Thursday.

According to the firm, the service based on PHS networks will be provided at 4,000 yen (US$32.61) to 5,000 yen (US$40.76) per month. The data transmission speed will be 64 kilobits per second (kbps).

DDI Pocket, a KDDI group company, has been providing its own flat rate mobile services. Currently about 3 million people are using the flat rate mobile services. The number of users is expected to triple by 2005.

In addition, Heisei Denden, a Tokyo-based telecom venture, announced that it would launch a telephone service from a fixed-line telephone to a mobile phone at 60 yen (US$0.49) per three minutes on 1 November. A similar service being provided by NTT DoCoMo costs 80 yen (US$0.65) per three minutes, and another service provided by J-Phone and KDDI costs 120 yen (US$0.98) per three minutes.

Heisei initially will provide the service in the Tokyo metropolitan area only, but plans to expand the service area rapidly to nationwide by the end of this year.

Regarding calls from a fixed-line phone to a mobile phone, mobile carriers are given authority to decide the telephone charges. Heisei Denden and Cable & Wireless are urging the government to hand over the right to decide the telephone charge to fixed-line carriers.

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