Sony and Ericsson in mobile talks

The Sony Airboard offers mobile internet and television access

The Japanese electronics giant Sony and the Swedish mobile phone company Ericsson are in advanced talks about integrating their mobile phone handset businesses, both companies confirmed on Thursday.

Ericsson's vision of the next generation mobile phones

Both Sony and Ericsson said no details have been agreed.

However, the two companies are expected to announce the formation of a joint venture in the UK which will oversee the development, product planning and sales of mobile phone handsets, according to the Jiji Press news agency in Japan.

"This would be good for Sony in the sense that it could expand its distribution channels and boost production," said UBS Warburg analyst Masahiro Ono.

Ericsson, which recently announced it is pulling out of mobile handset production, would benefit from links with Sony because its electronics products are seen as innovative and are popular with consumers, said analysts.