In the past, the success of the handset has greatly contributed to the success of a mobile offering, such as DoCoMo's I-mode Internet data service that now has over 22 million users. Industry watchers attribute the stunning success of the I-mode partly to Japanese handsets, which are light, slim, have a long battery life, offer color screens and audio technology. But Japanese handset makers are bit players in the global wireless stage dominated by heavy hitters Motorola, Nokia and Ericsson. DoCoMo's 3G promise has given NEC, Matsushita, Sony, Toshiba, and Sharp a chance to become major players in the next-generation mobile sector. Sony, which has only a two percent share of the global handset market, announced a joint venture on Tuesday with the world's number-three handset maker Ericsson.
Analysts call the deal a good fit.
Ericsson, like many other European and U.S. wireless companies, will contribute extensive distribution channels and access to network equipment. On Monday, Japanese media reported that Mitsubishi Electric was in final talks with Motorola to develop and manufacture 3G handsets. Mitsubishi denied the report. Already consummated deals include an alliance between Toshiba and Siemens to cooperate on 3G cell phones for the global market. Though 3G promises faster speed and wider content offerings, it has yet to promise profits.