Docomo to cut mobile rates by up to 40%

Japan’s NTT Docomo has announced a new simplified mobile service fee structure that the operator says will reduce mobile charges by between 20% and 40%.

The operator plans to completely separate handset and service fees and unify voice, SMS and data charges in response to criticism that its existing plans have been too complicated and hard to understand.

The new plans are divided into two categories – a “Gigalight” plan which will charge based on data consumed, and a flat rate “Gigaho” plan for heavy data users.

Docomo also plans to start offering family discounts of 500 yen ($4.46) per month for contracts covering two family members, and 1,000 yen per month for contracts with three or more members.

Docomo’s new fee structure is also a response to pressure from the Japanese government on operators to reduce mobile service fees to bring them in line with prices in comparable markets.

The operator expects that the new fee structure could reduce its income by as much as 400 billion yen ($3.6 billion) per year.