November 2, 2022 Trends in Switching to New Rate Plans Offered by Mobile Phone Carriers

The number of subscribers to the new rate plans of mobile phone carriers exceeded 45.0 million as of the end of September 2022. The Ministry of Internal Affairs and Communications (MIC) has also decided to release the results of a survey it conducted regarding this matter.

1. Status of switching to new rate plans offered by mobile phone carriers

Since the 2019 amendment of the Telecommunications Business Act, MIC has continued to undertake various measures aimed at developing a fair competitive environment in the mobile phone market. As a result of these measures, mainly since February 2021, mobile phone carriers have started offering new, lower-priced rate plans (hereinafter referred to as the “new rate plans”), and their competition has become more intense.
Under these circumstances, users have been shifting to the new rate plans. The total number of subscriptions to the new rate plans offered by major mobile phone carriers reached exceeded 45.0 million as of the end of September 2022.

2. Results of the survey regarding user awareness of switching to new rate plans

MIC regularly conducts online questionnaire-based surveys to ascertain user awareness regarding telecommunications. In the survey conducting in September 2022, the main results relating to switching to new rate plans were as follows.
Regarding usage status of new rate plans, 47.6% of respondents stated they already used such a plan, 11.2% replied that they wish to switch in due course, 26.4% stated they did not intend to switch, and 14.8% replied that they were unsure because they did not know about the new rate plans. Looking at the breakdown of the responses, the percentage stating that they already used such a plan was lower among higher age groups and women, while a higher proportion of those segments replied that they were unsure because they did not know about the new rate plans.
Respondents whose communications charges were cheaper after switching to a new rate plan stated that they were paying approximately 2,000 yen/month less on average.
The most commonly cited reason for not intending to switch to a new rate plan was that the individual had no particular reason to do so (24.6%).
Those who had carried out the relevant procedures online were asked if any procedures had been difficult or hard to understand. In response, more than 60% stated that there had been no procedures that they had found difficult or hard to understand (62.3%).

MIC will continue developing a fair, competitive environment in the mobile phone market so that mobile phone carriers' competition will lead to lower prices and more diverse services.

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