Transparent Billing Bad For Japanese Economy

By Eric Priezkalns 11 Oct 2007

Japanese telco KDDI is set to cut the cost of calls, and increase the cost of handsets. Diminishing the subsidy of handsets should, in principle, be a good thing for customers. It means they pay for what they get. That means that customers who make more calls do not subsidize customers more interested in how their handset looks than in how it works. However, with economic growth in Japan still struggling to gather momentum, some analysts have warned that reducing call costs may encourage a price war that would have a deflationary impact on the Japanese economy. So what is good for Japanese customers may end up being bad for Japan as a whole :(

Eric Priezkalns

Eric is the Editor of Commsrisk. Look here for more about the history of Commsrisk and the role played by Eric.

Eric is also the Chief Executive of the Risk & Assurance Group (RAG), a global association of professionals working in risk management and business assurance for communications providers.

Previously Eric was Director of Risk Management for Qatar Telecom and he has worked with Cable & Wireless, T‑Mobile, Sky, Worldcom and other telcos. He was lead author of Revenue Assurance: Expert Opinions for Communications Providers, published by CRC Press. He is a qualified chartered accountant, with degrees in information systems, and in mathematics and philosophy.