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KDDI Announces Discount for Smartphone Users

Date Posted: 2012-01-27

The battle for customers seeking the latest cellular phone technology has intensified as KDDI Corp this week announced a deep discount for smartphone users who use fixed-line communications services of KDDI or its partner firms.

The monthly data communications fees for smartphone users will be lowered by as much as 1,480 for up to two years, according to an announcement from the fixed-line and mobile communications carrier. KDDI officials say the discount will apply to KDDI smartphone users who subscribe to its fiber-optic fixed-line telephone and data communications services or similar services provided by 37 cable television firms.

KDDI says the goal is to expand its customer base by offering the combined low rate for fixed-line and mobile services. The firm's new pricing represents a new business model with new value added, President Takashi Tanaka told a news conference, stressing that the pricing is unlikely to trigger any conventional-style price war. The new pricing will take effect in March. The 37 CATV firms include industry leader Jupiter Telecommunications Co. The present KDDI's flat-rate data communications fee for smartphone users stands at 5,460 per month. The new discount will cut the monthly fee to 3,980, the lowest in Japan.

KDDI also said it will allow smartphone users to download applications from a library of more than 500 titles unlimitedly at a fixed monthly cost of 390. The service will also begin in March.

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