Frugal Japan
Living frugally in an expensive world

Feel like saving some money on your phone bill? I do, too! I’ve lately gotten fed up with Y10,000 or higher bills for international calls from my supposed “discount” service. It’s not that I talk on the phone that much — it’s just that I’ve yet to fully take advantage of the discount services offered. This week, I’d like to explore three discount options for long-distance service.

First, some explanation. As you may know, the domestic, long-distance and international calling markets in Japan were liberalized in 2001, and the decades-long monopoly of NTT and KDDI was broken up. Through the oddly named “My Line” service, you can literally register for three or four different service providers for one line, although NTT still maintains the rights to access lines (or home phone lines). The are a wide variety of discount options, but today I will focus on three: a bulk service buying company, a new telephone card option from Costco, and cable phone.

First, let me introduce T-1 Communications, a local foreign-owned company that purchases long-distance (both overseas and within Japan) telephone service in bulk and offers it to customers at a discount. The rates offered (Y10.5/minute to the US 24hrs a day) appear quite reasonable, and no registration or monthly fees are charged. Payment is by credit card, and registration quite simple, with excellent English customer support. I currently subscribe to T-1’s cell phone service (you can register any number), and am very pleased. Check out http://www.T-1.co.jp for more information.

Phone cards (such as the Brastel and Global Card) are also an option, and attractive in terms of cost-control as they are prepaid. Rates for cards vary, but are among the lowest available. Costco recently started offering a particularly attractive MCI Calling card, with Y7.6 rates per minute for fixed-line to fixed-line calls from Japan to the US any time of day. To get more information, call 0120-98-1022 (from 8:00-24:00). Note that, depending on your provider, you may not be able to use your phone card from your individual phone. The Costco card is available at Costco locations nationwide.

Finally, I was surprised to find that some local cable operators (such as local Kansai powerhouse, J-COM) are offering bundled cable, high-speed Internet and telephone service. The bundled service,
starting at Y9900 per month, might not be the best option for everyone, but the low-local rates and possibility of totally cutting ties with NTT even for local service (and thus avoiding NTT’s basic monthly charge) is extremely attractive. In some locales, you can even keep your existing phone number. Check out J-COM Hokuetsu’s excellent English site for more details on the service.

It goes without saying that other options (such as callback services or IP telephony) are worthy of exploration, but I will have to address this another week!