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23 Aug 04 06:45 07:45 UK |
NTT DoCoMo, the world's second-largest mobile phone company, is in talks to buy handsets from the US's Motorola.
DoCoMo has been providing companies with cash to help them develop 3G phones, which let subscribers use more sophisticated video and audio services.
The company has identified 3G, or third generation, wireless products as a key driver of future profit growth.
Industry leader Nokia also is in talks with DoCoMo as companies look to boost sales in the valuable Japanese market.
Motorola, the world's second-largest phone maker, last month reported a 40% jump in second quarter sales.
The company said that revenues are likely to improve in the third quarter as well.
At the time Motorola said it had continued to win market share from rivals, including Nokia.