Japan tells operators: Put a SIM lock in a new mobe? You'd better unlock it for free

From May next year, all mobile phones sold in Japan will either arrive unlocked or be able to be unlocked.

An edict from Japan’s Ministry of Internal Affairs and Communications has stipulated that the mobile phone operators will have to unlock phones free of charge if the customer requests it. This is aimed at making the pricing more competitive.

Phones in Japan, like many other countries, are sold subsidised and locked, typically on two-year contracts. The networks also have advanced friends and family plans: a high value customer may get a second phone for their child or older parents, for example Raku Raku's easy-to-use senior phones, with free calling between the family members. This will help reduce the network churn that might otherwise come from making all handsets SIM-free.

The new ruling applies to all operators, not just the major networks: NTT DoCoMo, KDDI and Softbank. It also applies to the MVNOs. Despite there being a large number of Japanese MVNOs, their market share is small, totalling five per cent of the Japanese market, and the unlocking stipulation may well help them to grow and put price pressure on the larger companies.

Countries that have a subsidy model often find it hard to wean off of it. When Virgin Mobile launched in the UK 15 years ago it was hailed as the end of phone subsidies. Similar claims were made at the launch of the original iPhone.

Other countries and regulatory authorities will no doubt be watching the way the Japanese market shifts as a result of the new ruling. ®