Japan Considering Easing Smartphone Discount Restrictions to Expand 5G Millimeter Wave Adoption: "Essential for True 5G Experience"

It has been revealed that the Japanese Ministry of Internal Affairs and Communications is considering easing the upper limit on discounts offered by telecom carriers when selling 5G millimeter-wave compatible smartphones to promote their adoption.

The Ministry of Internal Affairs and Communications disclosed this information in a document presented at the 57th Working Group held under the Telecommunications Market Scrutiny Meeting on the 12th. Millimeter wave is one of the frequency bands used in 5G (5th generation mobile communication system), characterized by its low latency and high-speed, large-capacity communication capabilities. Compared to 'Sub6', which can be utilized using existing 4G infrastructure, it offers high-speed communication and can handle numerous simultaneous connections. However, it has the drawback of being susceptible to obstacles and having a limited transmission range.

Due to these issues, the spread of millimeter-wave compatible smartphones has been slow. According to the submitted materials, millimeter-wave compatible models account for only 5.2% of the total shipments.

The Working Group argued that telecom carriers should increase terminal discounts to expand the adoption of millimeter-wave compatible models. Specifically, they are considering raising the upper limit of terminal discounts from the current 40,000 yen to 55,000 yen by increasing it by 15,000 yen.

However, the 55,000 yen discount will only apply to terminals priced at 110,000 yen or more. For terminals priced between 80,000 yen and 110,000 yen, the discount rate will vary depending on the terminal price. For terminals priced below 80,000 yen, the current 50% discount will continue to apply.

In the past, the Working Group raised the opinion that "millimeter wave is essential to experience true 5G." Considering this background, support for millimeter-wave adoption is recognized as an important issue, judged to be reasonable for all telecommunications users.

On the other hand, concerns were raised that a significant easing of discounts could lead to problems for resellers, leading to a decision to limit the easing amount to 15,000 yen.

This easing measure was decided upon based on the judgment that "it is appropriate to terminate when the adoption rate of millimeter-wave compatible models exceeds half of all smartphones."

Based on the examination plan presented so far, the Ministry of Internal Affairs and Communications aims to increase the adoption rate of millimeter-wave compatible models to 50%. Along with the construction of millimeter-wave related infrastructure, they are expecting active participation from telecom carriers and manufacturers.