Mobile phone firms and manufacturers, including NTT DoCoMo and Vodafone, have joined forces to develop the next generation of high-speed networks.
3G networks are being launched across the world
The technology is intended to be 10 times faster than today's 3G services.
Phones and other devices featuring high-resolution movie players and games, as well as related content services, will be created.
The deal comes as the sector bids to cut manufacturing and development costs as revenues face competition pressures.
The group, which also includes Cingular, Siemens and Alcatel, will work together on the new technology known as "super 3G".
DoCoMo said the first stage of development will be completed by 2007, but no date has been set for a commercial launch.
Existing 3G infrastructure, which has cost phone companies billions in recent years, will need to be upgraded but not replaced.