PriceCheckTokyo

The Right Stuff

Before you can install a telephone in Japan, you need to obtain the "right" to do so. This "right" is officially known as SHISETSU SECHHI FUTANKIN (roughly translated as "Facility Cost Bearing Fee.") It is also known as DENWA KANYUU KEN, which is loosely translated to be "Phone Line Subscription Right" The official English translation, according to the phone company is simply, "subscription fee." ,

This subscription fee is ¥72,000 per line. That's right, you need to fork out a fair bit of money to get a phone. This money is non-interest bearing, and it's only refundable once you terminate your line.

People usually don't terminate their phone, right? That means the phone company gets to keep the ¥72,000 for life! Wow, that's like getting a zero-interest loan from the population! Some say this is how the Japanese phone monopoly became so cash-rich and could go on worldwide shopping sprees worldwide?

In reality however, people usually buy these "rights" second-hand at special shops which trade these "rights." The going rate of such a second-hand "right" is about ¥30,000. Interestingly, these "rights" are considered as assets and companies list them as such in their financial records.

There are ways to get a phone without a "right." If you go with a digital line (ISDN), you can skip the "right," but with a slightly higher monthly fee. You're planning to be in Japan for less than seven years, you'll come out on top. Anything longer, you're better off getting your "right!" Another way is to use a cellular phone as your only phone. It costs about ¥3,000 to sign up and the phone itself is practically free.

Recent newspaper stories said that the phone company is considering abandoning the "right" stuff. Unfortunately, no one seems to know if and when the phone company will actually make a decision.

So, how did this "right" thing come about? Here is what we've heard.

Japan needed money to rebuild its phone network after World War II. The government-owned phone company thought that the subscribers should pay for the re-construction. You want a phone? Cough up the money! Supposedly, the "rights" in those days cost exactly the same as today, ¥72,000 per line!

50 years later, they're still asking for the "right" money. Why don't they stop this practice? They should have finished the reconstruction by now, right? Well, they can't because they are worried that people will start asking for a refund. (Hey, I paid for mine! Now that you don't need the money anymore, give me back my money!)

So, it is only logical to continue charging everyone who wants a phone!

Update: 25th August 2004

The Ministry of Public Management, Home Affairs, Posts and Telecommunications (Soumu) said today that it has plans to convert all fixed line phones to IP phones by 2010. It has earmarked ¥10,000,000,000 to make it happen.

No mention of when the phone company will do away wtih the "rights" stuff though.