TOKYO (Reuters) - Japans Softbank Corp (9984.T), seeking to lure more mobile phone users away from its bigger rivals, plans to scrap monthly basic fees for three years for students signing up to the carrier for the first time.
"Right now, winning more users comes first," President Masayoshi Son told a news conference, acknowledging that scrapping the basic charge for students from grade school through college would mean lower revenue per person.
"In total, we gain more revenue."
Son did not elaborate on the possible earnings impact of the new plan. Softbank, which is fighting to build up its share of a saturated market, outstripped bigger rivals NTT DoCoMo Inc (9437.T) and KDDI Corp (9433.T) in netting new users in December for the eighth straight month, thanks to low fees and aggressive marketing.
But DoCoMo and KDDI are fighting back by lowering their calling charges, cutting their monthly fees and revamping their mobile phone lineup.
The Softbank campaign, to run from February 1 through May 31, would eliminate a monthly basic charge of 980 yen, although students would still be charged a 315 yen monthly fee for text messaging and Internet surfing, Softbank said.
The campaign may be extended depending on the impact on earnings, Son said. Softbank also plans a separate discount by April for existing student subscribers, he said.
Softbank, which bought Vodafones (VOD.L) local unit in 2006, has been slashing fees and call and data transfer charges. Company sources have told Reuters that Softbank may offer free calls between users of mobile phones and Web-based phones throughout Japan.
The companys shares closed down 3.6 percent at 2,030 yen, against the benchmark Nikkei averages (.N225) 3.9 percent fall.
(Reporting by Mayumi Negishi; Editing by Hugh Lawson)
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