According to an announcement by LG Electronics on June 13, it will partner with NTT DoCoMo to develop WCDMA mobile phones. These phones will be introduced into the Japanese market at the beginning of 2006 and in other markets after that, as the new phones are also compatible with GSM/GPRS (General Packet Radio Service) networks. 

NTT DoCoMo will introduce Motorola and Nokia 3G mobile phones in the Japanese market later in 2005, which makes LG the third foreign company to supply NTT DoCoMo with mobile phones. LG is currently the fourth-largest mobile phone maker worldwide. In 2004 the company claims to have reached a mobile phone shipment volume of 44 million units and it is aiming to increase this number to 62 million units in 2005, which would mean annual growth of 41%. 

The newly announced partnership could help NTT Docomo strengthen its bargaining position with existing Japanese suppliers of mobile phones and enable it to lower its own subsidies for 3G phones, which are used to keep handset prices at an affordable rate for consumers.