Japanese mobile carrier Softbank Corp. said Wednesday it has a deal with Apple Inc. to sell the iPhone later this year — the first such agreement in Japan for the hit cell phone.Softbank spokesman Naoki Nakayama said no further details, such as pricing and dates, were available, and he said it's not clear if the deal is exclusive. An addition of the iPhone to Softbank's lineup in this intensely competitive mobile market is almost sure to be a plus for the company. Gadget-loving Japan is already a big market for Apple's other popular product, the iPod portable music player.

Tokyo-based Softbank has 18.77 million subscribers in Japan, and is still lagging in third place behind mobile service providers NTT DoCoMo and KDDI Corp. In recent years, it has been aggressively expanding by offering cheaper services and running catchy TV ads featuring actress Cameron Diaz.



The signing with Softbank is the latest for the Cupertino, California-based company that is seeking to expand iPhone sales overseas by inking deals with wireless carriers in Europe, South America and other places.

Initially Apple had insisted on exclusivity to sell in a certain country but it has begun to break from that pattern in recent deals.

Japan boasts some of the world's most sophisticated cell phones, which can be used for watching digital TV broadcasts, taking digital photos, doing restaurant searches, e-mail, electronic payments, reading digital novels and music downloads.

And so some of the razzle-dazzle of the iPhone — an iPod-cell phone-Internet surfing device— may be lost on Japanese.

But the gadget, with its trademark touch-screen phone, controlled by the user's fingers on the screen, still promises an import glamour as well as an extra "cool" factor that's likely to attract many fans here.

NTT DoCoMo spokesman Shinjiro Minami said the company was unhappy that Softbank had beaten it to an iPhone deal as DoCoMo had also been considering such a deal.

"The user interface is very attractive and it's a product that's likely to draw Apple fans in Japan," he said, adding that it was unclear if DoCoMo plans to continue to pursue an iPhone deal.

KDDI spokesman Satoru Ito said the carrier has not been interested in offering iPhone, and said he had no comment on the Softbank announcement. KDDI users tend to be youngsters who already use cell phones for music players — making the iPhone less attractive.

Apple Japan officials did not immediately return calls requesting comment.

As of the end of March, Apple sold 5.4 million iPhones globally, and it has been struggling to keep up with demand in new markets.

Apple has so far struck exclusive deals for the iPhone with AT&T Inc. in the United States, O2 in Britain, T-Mobile in Germany and France Telecom's Orange wireless arm in France.

The company plans further expansion later this year through the partnership with Mexico City-based America Movil, which boasts 159.2 million subscribers in 16 countries, including Argentina, Brazil, Chile, Colombia and Mexico.

Apple is preparing a new version of the iPhone which promises a speedier Internet connection.

Softbank bought British cellular giant Vodafone Group PLC's struggling Japanese mobile operations in 2006. Softbank owns stakes in Yahoo Inc., offers broadband services and runs other Internet businesses in Japan.

The mobile phone defections to Softbank have accelerated since late last year when Japan adopted "number portability," allowing people to switch phone companies without changing their cell phone numbers.

Softbank has beat rivals in monthly subscriber gains for the last year. Symbolic of Softbank's aggressive tactics is a student discount this year that offers most services for free.

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