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KDDI joins rivals with new prices to lift revenue per user

25
Jun
2014

Japans No. 2 wireless carrier KDDI Corp on Wednesday unveiled flat-rate plans that are likely to raise monthly bills for most smartphone users using its KDDI au service, tracking similar moves by rivals trying to fend off pressure from free message applications such as Line. KDDI aus new monthly plan for smartphone users includes a voice service at 2,700 yen ($26.46) a month, matching prices of similar plans announced earlier this month by industry leader NTT DoCoMo and Softbank Corp. Including data services and after discounts, KDDI aus average revenue per user (ARPU) is currently around 4,150 yen per month, down from 5,800 yen five years ago. Line, owned by South Koreas Naver Corp and particularly popular in Japan, allows users to text and call from smartphones, without being charged for a cell call. Takashi Tanaka, KDDIs chief executive, acknowledged the pricing may be considered too high.

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