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Japanese mobile phonefirms may lease networks

The Japanese telecommunications ministry is considering requiring NTT DoCoMo Inc and other mobile phone companies to open their networks to newcomers, a newspaper said yesterday.

The ministry of public management, home affairs and posts and telecommunications may oblige the firms to lease the networks for the brand-new third-generation (3G) mobile service, the Nihon Keizai Shimbun said.

The ministry move follows a decision by KDDI Corp to become the first Japanese carrier to open its mobile network to other companies, the economic daily said.

KDDI, Japan's number two telecoms firm, has basically agreed with a Tokyo-based start-up company to lease surplus networks for Personal Handyphone System (PHS) limited mobile services, it said.

If established Japanese mobile phone operators open their networks, it would make it easier for foreign companies and smaller carriers to enter the market even without a government licence for wireless services. It would lead to more competition and lower rates.
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