Mobile companies in Japan are ready to fire up the existing strong competition, as the number portability rule is now applicable.
Japanese cell phone subscribers can now keep the same mobile phone number for lifetime, thanks to new rule that took effect on October 24 2006. Analysts rate the rule as a spark that will ignite a new phase of stronger competition in Japan's mobile industry, reports IT Week.
Users can now switch their mobile phone operators without changing their phone numbers, but their mobile email IDs will be changed. Nation's three key Mobile firms are ready for a price war. Around 200,000 subscribers in Japan switched their operators on October 24 2006.
Softbank Mobile, Minnow of Japanese Mobile market gave a shock to its big competitors when it slashed its prices by offering a 70 % discount on its new tariff plan. Subscribers signing up for the service will be offered unlimited SMS & local calls at a mere US $ 24 every month. Moreover, the company has warned competitors that it would not hesitate in further price cuts if competitors react by slashing their tariffs as well.
"Consumers are bound to make merry as competitors slash prices heavily to lure as many customers as possible, since changing phone number is no longer necessary while shifting operators. However, real strength of small competitors like Softbank will be tested in whether their networks are sufficient enough to handle a sudden rush of new subscribers," said an analyst at RNCOS.
NTT DoCoMo leads mobile industry in Japan, with a 55 % share. KDDI comes second, with 29% share followed by Softbank Mobile, formed by merger of Softbank & Vodafone KK, with 16% share.
Number portability in mobile phones can already be seen in UK, Hong Kong, Australia, Germany, US, Netherlands, Singapore & France. Even Pakistan with a mere 6.9 % mobile penetration level plans to introduce mobile number portability.
India plans to do the same by the prescribed deadline of April 2007 set by DoT (Dept. of Telecommunications). MCMC (Malaysian Communications & Multimedia Commission) is confident to implement number portability by December 2007 to mobile phone users across Malaysia.
Related Market Research Reports:
Asia Pacific Mobile Handset Market Analysis
Mobile Handset Industry Asia (2004-2009)
Changing Faces of The Global Mobile Handset Market (2007)
