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Telco/Internet specialist

Kirk Boodry

Redex Research

Thematic (Sector/Industry)

Japan Telecom services / Thematic (Sector/Industry)

<p>KDDI's discount brand UQ Mobile has increased the amount of data in its mid-range smartphone plans from 9GB to 10GB, whilst it will also increase speeds for data use out of the bundle. With Rakuten's mobile launch in April, we expected that tactical price changes would increase and this is indicative of that trend.  KDDI was the only incumbent mobile operator with service revenue growth in Q4 (+4% v erosion for DoCoMo and Softbank)  so it has room to maneuver, especially at the UQ Mobile subsidiary (+43% YoY growth). For newcomer Rakuten, competition from the discount brands makes its off-network offer look relatively expensive in a market that it hoped to impress on price.</p>

KDDI's discount brand UQ Mobile has increased the amount of data in its mid-range smartphone plans from 9GB to 10GB, whilst it will also increase speeds for data use out of the bundle. With Rakuten's mobile launch in April, we expected that tactical price changes would increase and this is indicative of that trend.  KDDI was the only incumbent mobile operator with service revenue growth in Q4 (+4% v erosion for DoCoMo and Softbank)  so it has room to maneuver, especially at the UQ Mobile subsidiary (+43% YoY growth). For newcomer Rakuten, competition from the discount brands makes its off-network offer look relatively expensive in a market that it hoped to impress on price.

Japan Mobile: KDDI's Modest Data Bundle Boost Highlights Challenges to Rakuten