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Japan's KDDI to jointly develop software with cellphone makers - report
07.18.2006, 09:35 PM

http://www.forbes.com/markets/feeds/afx/2006/07/18/afx2888119.html

TOKYO (XFN-ASIA) - KDDI Corp will tie up with Toshiba Corp and two other firms to develop standardized cellphone software in a bid to slash the cost of developing cellphones, the Nihon Keizai Shimbun reported.

The newspaper, without identifying its sources, said the standardized software was expected to help makers of cellphones reduce development costs and allow them to make cheaper phones.

The partnership also includes Sanyo Electric Co and maker of cellphone chips Qualcomm Inc of the US.

It will develop software to support electronic mail, a digital camera, a music player and other advanced functions.

KDDI will then sell the software to companies that build phones for its 'au' mobile phone service. The phones are likely to appear in the market as soon as next fall here.

With the cost of developing a cellphone estimated at 10-20 bln yen, the need to keep up with new features and technological advances is straining manufacturers' budgets, the Nikkei said.

Through KDDI's initiative, cellphone makers will be able to cut software-related costs, which make up by 2/3 to 3/4 of development costs, the Nikkei said.