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Infrastructure (Telecom) Mobile Communications Market  

 

Growth Factor in Mobile Phone Market 17

  • Mobile phone market is growing with an annual increase of 10 million subscribers each year.

26.91 million

(FY1996)

38.25 million

(FY1997)

47.31 million

(FY1998)

54.11 million

 

(as of the end of December 1999)

 

(Cellular phone: 48.48 million, PHS: 5.63 million)

 

  • High growth is fostered by pro-competition policy and technological innovation which accelerate rate reduction and diversification.

 Pro-competition Policy :

  • Realization of fair and competitive markets containing six carriers in each market. 

 1)  

July 1992:

Separation of mobile business unit from NTT

 

July 1993:

Division of the mobile business carrier separated from NTT into 9 companies

 2)  

1994:

Introduction of competition by 3 or 4 carriers in each market block

 3)  

Permission for 3 PHS carriers in each market block

 4)  

April 1994:

Introduction of COAM (Customer Owned and Maintained) system

 5)  

Dec. 1998:

9 NTT Personal Group companies transferred their PHS businesses to NTT DoCoMo Group companies in each region. (5 or 6 cellular and PHS carriers in each regional block)

 Technological Innovation :

  • Digitalization and drastic technological innovation in terminal equipment

1) 1993: Digital mobile phone services launched - Higher quality, privacy function

2) Down-sizing and weight-reduction of terminals, longer battery life, low-priced terminals

Rate Reduction and Diversification:

  • Rapid reduction and diversification of rates

1) As a result of pro-competition policy and technological innovation, NTT DoCoMo abolished its initial subscription fee, reduced basic monthly charges 49% and reduced airtime charges 69% over the past 5 years.

2) April 1994: Introduction of "Low-volume call rate" tariff opened market to personal users.

3) April 1995: NTT DoCoMo introduced “Area-by-Area call rate” tariff (3 min. ¥80 ~ 90: 800 MHz, digital).

 

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