Wireless operator Softbank Corp (9984.T)
said on Tuesday it would offer mobile phones from Casio
Computer Co (6952.T) by the end of the year, broadening a
handset lineup that already includes Apple Inc's (AAPL.O)
iPhone.
Casio's handsets, known for their waterproof and
shock-resistant features and advanced digital camera functions,
are expected to help further boost the appeal of Softbank's
mobile phone services among potential subscribers.
Softbank, Japan's third-biggest mobile phone operator
competing with NTT DoCoMo Inc (9437.T) and KDDI Corp (9433.T),
added more users than its rivals on a net basis in July for the
15th straight month, helped by the iPhone launch.
For Casio, the deal would allow the Japanese consumer
electronics maker entry into a new market as Casio will be
providing Softbank with its first W-CDMA phones.
Casio supplies CDMA-based mobile phones to KDDI, Verizon
Wireless in the United States and South Korea's LG Telecom
(032640.KS). It said in November it planned to launch W-CDMA
phones in Japan sometime in the six months to March 2009.
KDDI operates CDMA-based networks, while Softbank and NTT
DoCoMo Inc (9437.T), Japan's top wireless carrier, offer mobile
phone services based on W-CDMA technology.
Securing a foothold in the W-CDMA market is important for
Casio, the 10th cellphone supplier for Softbank, as mobile
phone sales in Japan have been slowing sharply in recent
months.
For years, Japanese mobile phone operators had paid several
hundred dollars per handset in subsidies to retailers for each
unit sold to keep cellphone prices low, recouping these heavy
costs through calling and other service fees.
But they have recently introduced new sales strategies that
lowered calling fees and raised handset prices, dampening
mobile phone demand.
Shares in Softbank closed down 0.9 percent at 1,862 yen
while Casio fell 3.0 percent to 1,238 yen. The benchmark Nikkei
average (.N225) was down 2.3 percent.
(Additional reporting by Sachi Izumi; Editing by Michael
Watson)
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