27 Feb 04

NTT DoCoMo is to begin offering low-priced handsets made by foreign makers including Nokia this year in an effort to boost its 3G wireless service in Japan.

The move would mark the first time for DoCoMo to offer foreign-made handsets for its 3G service, called FOMA, and could signal the carrier is ready to open the door to other firms.

An NTT DoCoMo spokesman said the company has not finalised any plans to sell such foreign handsets.

DoCoMo to date has bought almost all its handsets from domestic manufacturers. For 3G handsets, makers such as NEC, Fujitsu and Matsushita Electric Industrial have been the only companies that managed to manufacture handsets that met DoCoMo's stringent product criteria.

The industry source said that of all the foreign handset manufacturers, Nokia is the number one contender to offer 3G handsets designed to DoCoMo's specifications. The Finnish company already supplies 3G handsets that are compatible with the W-CDMA format, which DoCoMo uses, to mobile phone carriers in more than 10 countries, including Vodafone KK of Japan.

For DoCoMo, the possible release of Nokia and other foreign 3G handsets could lure more customers away from domestic rival KDDI, whose 3G CDMA2000 1x service has been popular in Japan due to discount rates and unique services such as "Chaku-Uta," which allows users to download the latest hit songs and use them as ring tones.