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Reports: Nokia to start mobile service in Japan
AP - 51 minutes ago
TOKYO - Finland's Nokia Corp., the world's largest cell phone maker, plans to launch mobile phone services in Japan, news reports said Saturday.
The company, which would become the first handset manufacturer to operate telecommunications services in Japan, will attempt to crack one of the world's most competitive but lucrative markets through its high-end brand Vertu, the newspaper Yomiuri Shimbun said, citing unspecified sources.
Nokia's entry into Japan would likely shake up its mobile phone industry, now dominated by three carriers, NTT DoCoMo Inc., KDDI Corp. and SoftBank Corp. It could also help Nokia boost its image and market share.
Nokia plans to rent wireless communication networks from DoCoMo and begin services as a "mobile virtual network operator" in the spring, Kyodo News agency said.
Nokia officials were not reachable for comment Saturday.
Yomiuri said Nokia would target wealthy Japanese customers first with its Vertu line, which is made with jewels, precious metals and premium leather. The handsets will retail for 1.6 million yen to 5 million yen ($17,000 to $52,000), it said.
Vertu phones will not be compatible with DoCoMo's i-mode Internet service or provide terrestrial digital television reception, according to Yomiuri.
Although Nokia holds a 39 percent share of the world's handset market, its handset presence in Japan remains small. Accustomed to advanced high-tech features absent on many foreign models, Japanese consumers tend to shrug off overseas offerings.
Apple Inc.'s iPhone, which drew long lines when it debuted in July, has been one notable exception. But even many iPhone enthusiasts acknowledge that they cannot give up their Japanese handsets and now use both.
Vertu phones feature a "concierge key" that enables access to a round-the-clock personal assistant to help with travel, dining and entertaining arrangements.
Japan has about 107 million cell phones, or nearly one cell phone per person.
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