Specialist in Japanese equities, Kheiron Group

Nathan Ramler, CFA

Specialist in Japanese equities

Kheiron Group

Tokyo-based with experience in global equity markets and M&A. Striving to add value and insight. 

Specialists in Japan

Thematic (Sector/Industry)

Japan Telecom services / Thematic (Sector/Industry)

In a <a href="https://asia.nikkei.com/Politics/Japan-s-mobile-fees-have-room-for-40-cut-top-spokesman-says" target="_blank">public speech</a>, Chief Cabinet Secretary Yoshihide Suga said mobile carriers had room to lower bills by 40 percent. These and other comments may be only a storm in a teacup, but there is room for the industry to improve.
We have been here before; politicians like to posture and to show that the government is looking out for the average consumer. No surprise then that some people in power might enjoy good headlines ahead of the LDP Presidential election (20 September 2018) and the upcoming hike in the consumption tax rate (from 8% to 10% scheduled for October 2019).
But that said, the telcos may very well need to adjust their practices and at the very least make some of their confusing pricing structures clearer. Expect some changes in how smartphone prices (especially iPhones) are bundled with service fees. 
Below we take a look at telecom pricing practices in Japan while addressing the specific comments made by Mr. Suga.

In a public speech, Chief Cabinet Secretary Yoshihide Suga said mobile carriers had room to lower bills by 40 percent. These and other comments may be only a storm in a teacup, but there is room for the industry to improve.
We have been here before; politicians like to posture and to show that the government is looking out for the average consumer. No surprise then that some people in power might enjoy good headlines ahead of the LDP Presidential election (20 September 2018) and the upcoming hike in the consumption tax rate (from 8% to 10% scheduled for October 2019).
But that said, the telcos may very well need to adjust their practices and at the very least make some of their confusing pricing structures clearer. Expect some changes in how smartphone prices (especially iPhones) are bundled with service fees. 
Below we take a look at telecom pricing practices in Japan while addressing the specific comments made by Mr. Suga. 

NTT (Nippon Telegraph & Telephone) (9432 JP)

日本の通信会社（ソフトバンク、9984 JP、ドコモ、9437 JP、KDDI、9433 JP）は価格設定慣行の改善を迫られている