Japan deregulated its phone services and now we are seeing the rate wars beginning.

NTT East has routed all local phone traffic in Tokyo until now. They've been charging 10 yen for a three minute call. But their new competitors are charging only 8.8 yen for three minues and one has gone to 8.7 yen. NTT dropped its rates to 8.8 yen.

A new company is rocking the boat in the long distance seas. Fusion offers flat rate long distance: 20 yen for a three minute call anywhere in Japan. Everyone else charges by distance, so a call 20 km away might be 10 yen, but one to Sapporo might cost 50 yen. Fusion can save you a lot of money if you frequently call far away.

So far, this all looks very good for consumers. But it is confusing to find the lowest rates and the best calling plans. Perhaps what you win is discounted calls is sucked up by the time it takes to do the research.