Telecommunication Charges Getting Lower after Deregulation
Numerous academics and industry mavens agree that government regulations should be relieved in many markets, since these regulations ironically harm consumers. This is the so-called paradox of regulation. According to this article, the deregulation of the industry has brought about lower fees and better service. The Japanese market is singled out as a case in point where smaller rivals Softbank and KDDI have successfully been able to take on the market leader NTT DoCoMo with competitive and attractive pricing plans.
- According to the telecommunication industry on August 25, the biggest telecommunication service provider, NTT DoCoMo, introduced “Kake-hodai & Pake-aeru,” a new subscription plan based on a flat rate, in June. The essence of these plans is to be able to use unlimited voice calling with a monthly payment of 20,000 to 30,000 won (US$19.63 to 29.47).
- During the same period of time, another Japanese telecommunication service provider company, Softbank, released a similar plan. KDDI also plans to launch a similar system soon.
- Therefore, market leaders like NTT DoCoMo are free to join price competition upon its own necessity. Without government regulations, free competition in the market is being created.