UPDATE 1-Japan's NTT DoCoMo to cut handset prices

(Recasts with company comments and detail)

TOKYO, May 20 (Reuters) - NTT DoCoMo Inc (9437.T), Japan's top mobile phone operator, said it planned to cut prices on some handset models to help shift inventory ahead of a new product launch in the summer.

But the wireless giant said the move did not mean a change in its marketing strategy, in which customers are offered lower calling fees in return for higher handset prices.

The Nikkei business daily reported on Tuesday that DoCoMo, which has been losing market share to smaller rivals such as Softbank Corp (9984.T), would mark down its mainstay models by about 5,000 yen from next month.

For years, DoCoMo and other Japanese wireless carriers had kept handset prices low to win customers and tried to recoup heavy costs through calling and other service fees, but some said the practice favoured users who changed handsets frequently.

In November, DoCoMo introduced a new sales strategy that lowered calling fees and raised handset prices, as a way to lock in users for longer.

The Nikkei also said No. 2 KDDI Corp (9433.T) would introduce a 24-payment installment plan from June that would make it easier for customers to pay for handsets.

A KDDI spokesman said the firm was considering introducing installment payments, but no details had been decided.

DoCoMo ended the morning down 1.9 percent at 157,000 yen and KDDI was up 0.1 percent at 693,000 yen. The benchmark Nikkei average .N225 fell 0.3 percent to 14,224.12. (Reporting by Sachi Izumi and Taiga Uranaka)