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Price War Means Cheaper Long Distance Calls

Date Posted: 2001-02-02

Japan Telecom announced on Tuesday a cut in long distance call charges of up to 20 % from March 1.

The reductions are to compete with NTT Communications, which has already reduced the price of its long distance calls.

Japan Telecom’s long distance charge is ¥10 cheaper than the NTT Communications rate, which is ¥60 for three minutes for distances of 60 km to 100 km during daytime weekdays. Japan Telecom earns 70 percent of its profits from long distance charges.

The price cut will cause the company a huge loss of income, around ¥1.1 billion yen. However, a senior executive managing director, Manabu Kotani says, “We want the consumers to know that we are always cheaper than NTT Communications. If they cut their price, we will cut our price.”

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