Reflecting the efforts of its peers, the MIC will focus on improving prices and services, while also considering how to boost switching and device availability in a market that is characteristically oligopolistic
The MIC aims to drive competition in mobile prices and tariffs
In Japan, the Ministry of Internal Affairs and Communications (MIC) has announced the “Plan for Promoting Competition in the Mobile Telecommunications Market” – an initiative prompted by the Government’s unveiling of a set of measures to overcome deflation in the economy. The regulator considers that ensuring that mobile services are of high quality and offered at reasonable prices will contribute to enhancing overall quality of life. Given the oligopolistic nature of the Japanese market (which is home to four mobile network operators: NTT Docomo, KDDI, SoftBank and Rakuten), the MIC wants to foster an environment of competition based on both price and service.
Switching is a key pillar of the regulator’s plan
The MIC intends to implement eight initiatives, which it has grouped into three pillars:
Achieving satisfactory prices and high quality services: This will include regulating excessive discounts (such as those leading to “one yen devices” sales), promoting the safe and secure distribution of second hand devices, and strengthening guidance to agency shops by mobile operators;
Accelerating smooth switching between service providers: Promoting public awareness for transitioning to new tariffs and advancing a one-stop service for mobile number portability (MNP); and
Promoting a fair and competitive environment among service providers: Here, the regulator will focus on improving communication and device separation regulation, allocating additional spectrum and further reducing connection fees.
Affordability and device market competition will also come under the spotlight
While monitoring progress of initiatives outlined in the plan, the MIC will explore opportunities for further measures to promote competition. By Q3 2024, the MIC aims to identify potential options having held working groups to review competition rules and study sessions on the adequacy of consumer protection rules. Specifically, MIC will conduct broad discussions centred around:
Ensuring affordability of communication fees and allowing a diverse selection of devices based on individual needs, with a focus on measures to drive innovation in the smartphone market, including second hand devices; and
Considering the most effective measures to promote competition given the continued oligopolistic nature of the mobile market.
The measures closely reflect those recently announced in South Korea
Affordability and consumer protection are two related issues that have been high on the policy agenda in recent years. In Australia, the ACMA has focused on supporting telecoms customers facing financial hardship, while in the UK, Ofcom has proposed a ban on inflation-linked mid-contract price rises. The MIC’s planned initiatives are especially reflective of action taken recently in South Korea, where operators have faced pressure from Minister of Science and ICT Lee Jong-ho to improve rural 5G coverage and to introduce cheaper mobile tariffs. In November 2023, the Ministry of Science and ICT (MSIT) announced a set of measures to “ease the burden of communications costs” and address the oligopolistic nature of the sector there. Similar to the MIC, the MSIT is looking to drive competition in the device market, as well as support investment and wholesale access for MVNOs.
