Japan Communications plans Net cellphone: source

TOKYO (Reuters) - Japanese wireless data communications provider Japan Communications Inc (9424.OJ: Quote, Profile, Research, Stock Buzz) plans to launch Internet mobile phones as early as July, a source with detailed knowledge of the matter said on Monday.

The provider is considering charging a fixed monthly rate for its mobile phone service but not charging extra for users who make calls via Internet networks, the source said.

Shares of J-Com, which uses NTT DoCoMo Inc's (9437.T: Quote, Profile, Research, Stock Buzz) network, were bid up at their daily limit amid a glut of buy orders.

The Nikkei business daily reported earlier that J-Com would launch the world's first Internet Protocol mobile phones in the July-September quarter.

J-Com's move is a new twist in the country's saturated mobile phone market, where DoCoMo and rivals KDDI Corp (9433.T: Quote, Profile, Research, Stock Buzz) and Softbank Corp (9984.T: Quote, Profile, Research, Stock Buzz) have been slashing prices in a fierce battle for market share.

(Reporting by Mayumi Negishi)