SoftBank bows to government pressure with fee cuts
[TOKYO] Japanese wireless carrier SoftBank Corp on Tuesday said it will lower its mobile fees, joining bigger rival NTT Docomo Inc following government calls to cut prices to spur consumer spending elsewhere in the economy.
Japan's third-biggest mobile phone network operator by subscribers said lower price plans include charging 2,980 yen (S$38.70) for 20 gigabytes of data per month from March.
The plan will be offered online only and use "SoftBank on Line" branding. Line Corp is merging with SoftBank's internet business Z Holdings Corp.
SoftBank also said it will cut fees at its main brand, launching a 6,580 yen plan with unlimited data, in contrast to its 8,480 yen 50GB plan currently.
The announcement, which follows pressure from Prime Minister Yoshihide Suga to reduce fees, marks a shift from offering low-price plans on its budget Ymobile brand while pushing consumers seeking the latest phones or more data onto expensive tariffs.
SoftBank Group Corp has slashed its shareholding to 40 per cent of the wireless carrier and investors are fearful of the price competition's impact on the telco's operating margin, which was 19 per cent in the year ended March.
GET BT IN YOUR INBOX DAILY
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
SoftBank Corp's shares are languishing below the 1,500 yen price achieved in its blockbuster December 2018 initial public offering, in contrast to shares in SoftBank Group whose shares are trading near two-decade highs.
REUTERS
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Consumer & Healthcare
‘Extreme’ climate blamed for world’s worst wine harvest in 62 years
Sheng Siong Q1 net profit up 9.3% on higher revenue
Nestle sales growth sputters on US slump, vitamin snags
Hermes Q1 sales jump 17% on strong China demand
Cordlife’s independent auditor to retire after issuing disclaimer of opinion on FY2023 financials
Cutting the cord?: Events leading up to Cordlife’s MOH suspension and arrests of its directors, ex-group CEO