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Japan Communications plans Net cellphone: source

TOKYO (Reuters) - Japanese wireless data communications provider Japan Communications Inc 9424.OJ 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 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 and Softbank Corp 9984.T have been slashing prices in a fierce battle for market share.

Reporting by Mayumi Negishi

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