Messaging app provider Line launches cheap smartphone service in Japan

TOKYO — Messaging app provider Line Corp said Monday (Sept 5) it started offering a cheap smartphone service starting from 500 yen (S$6.57) a month in Japan to a limited number of subscribers.

The new business, to be fully launched in October, uses the network infrastructure of mobile phone carrier NTT Docomo Inc. Line is giving users multiple subscription options costing up to 3,220 yen a month depending on the amount of data usage, providing unlimited use of its own Line app along with Twitter and Facebook.

Line’s entry into the mobile phone business is expected to fuel price competition at a time when companies such as e-commerce giant Rakuten Inc and retailer Aeon Co are offering cheap smartphone services.

“I believe we have a competitive edge...as we can offer the best prices depending on how users use smartphones as an MVNO (mobile virtual network operator),” Line Chief Strategy and Marketing Officer Jun Masuda said at a press conference.

There is still room for future growth in the mobile phone market as an industry survey shows the penetration rate of smartphones stood at around 57 per cent last year, according to Mr Masuda.

According to the MM Research Institute, high monthly fees have been one of the hurdles for smartphone use in Japan.

Line began its voice calls and messaging services in 2011 and had around 220 million users as of June. KYODO NEWS