Softbank to offer Casio Computer mobile phones

TOKYO (Reuters) - 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)