Japan’s statement on cellphone operators wipes ¥1-trillion off three biggiest carriers
Japan says that the companies have room to cut phone bills by about 40%
Tokyo — Japan’s wireless carriers tumbled in Tokyo after the government’s spokesperson said that the companies had room to cut phone bills by about 40%. This sparked concern that legislators would renew a push for greater competition in a sector dominated by three big players. The declines wiped about ¥1-trillion ($9bn) in market value off the three largest carriers combined after chief cabinet secretary Yoshihide Suga made the comment during a speech in Hokkaido, Japan. He said competition was not working at the companies. Kyodo News earlier reported the remarks, which were confirmed by Suga’s office. NTT Docomo fell 4%, the biggest drop in 2018, while KDDI fell 5.2% and SoftBank 1.6% at the close of Tokyo trading. Government calls to reduce service prices have pushed carriers’ shares down before, notably in 2014 and again in 2016, and the providers have in turn vowed to reduce rates. Still, revenue rose at Docomo and KDDI last fiscal year. Suga’s comment comes ahead of a leadershi...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.