Japanese mobile phone industry consolidates

THE JAPANESE media are claiming that NEC, Hitachi and Casio are in talks to merge their mobile phone operations.

If the reports are not all bollocks then the merged company would be Japan's second biggest manufacturer, following Sharp.

The cunning plan is that NEC will integrate its mobile phone business into a tie-up that already exists between Hitachi and Casio.

NEC wants to take a majority stake in the new entity, which would then control about 20 per cent of the Japanese mobile phone market.

Reports claim that the venture will start operations in April 2010. It is being touted as a way to slash development costs in the domestic market.

The Japanese mobile phone market has been shrinking faster than an Arctic swimmer's wedding tackle and it is hoped with more consolidation there will be more money to go around. It could also mean more handsets available to export to the rest of the world plus dog.

No one has confirmed the rumours, but word on the street is that they have simply not yet booked a hall to hold the press conference. µ