This is an AI translated post.
Japan Considers Relaxing Smartphone Discount Regulations to Promote 5G Millimeter Wave Adoption… "Essential for True 5G Experience"
- Writing language: Korean
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Base country: Japan
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- Information Technology
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Summarized by durumis AI
- Japan’s Ministry of Internal Affairs and Communications is reviewing easing the upper limit on discounts offered by telecommunications companies when selling 5G millimeter wave compatible smartphones to expand their adoption, aiming to boost the penetration rate of millimeter wave compatible models to 50%.
- Currently, millimeter wave compatible models account for only 5.2% of total shipments. While millimeter wave offers high-speed communication and allows for numerous simultaneous connections, it has drawbacks such as susceptibility to obstacles and a limited transmission range.
- The ministry is seeking to encourage the adoption of millimeter wave compatible models by expanding telecommunications companies' discounts on devices and expects active participation from telecommunications companies and manufacturers alongside the development of related infrastructure.
Japan's Ministry of Internal Affairs and Communications is considering easing the cap on discounts for 5G millimeter-wave compatible smartphones to promote their adoption.
The Ministry disclosed this information in a document released at the 57th Working Group meeting of the Telecommunications Market Verification Committee on the 12th. Millimeter-wave is a frequency band used in 5G (Fifth Generation mobile communication system) and is characterized by low latency and high-speed, high-capacity communication. Compared to "Sub6" which can be used by utilizing 4G facilities, it can withstand high-speed communication and simultaneous connections, but it has the disadvantages of being susceptible to obstacles and having a limited transmission range.
Due to these issues, the adoption of millimeter-wave compatible smartphones has been slow, and according to submitted data, millimeter-wave compatible models account for only 5.2% of total shipments.
The Working Group argued that to increase the adoption of millimeter-wave compatible models, the discounts offered by telecommunications carriers on terminals need to be increased. Specifically, they are considering raising the upper limit of terminal discounts from the current ¥40,000 to ¥55,000 by increasing it by ¥15,000.
However, the ¥55,000 discount only applies to terminals priced at ¥110,000 or more, and for terminals priced between ¥80,000 and ¥110,000, the discount rate varies depending on the terminal price. For terminals priced below ¥80,000, the current 50% discount will continue to apply.
In the past, the Working Group had raised the opinion that "millimeter-wave is essential to experience true 5G." Taking this background into consideration, support for millimeter-wave adoption is recognized as an important task, considering it to be reasonable for all telecommunications users.
On the other hand, concerns have been raised that substantial discount easing could lead to problems for resellers, and a policy to limit the easing to ¥15,000 has been established.
This easing measure was decided with the judgment that "it is appropriate to end when the adoption rate of millimeter-wave compatible models exceeds half of all smartphones."
Based on the review proposals presented so far, the Ministry of Internal Affairs and Communications aims to increase the adoption rate of millimeter-wave compatible models to 50% in the future, and in addition to building millimeter-wave related infrastructure, it is hoping for active participation from telecommunications carriers and manufacturers.
