Japan's NTT DoCoMo and South Korean partner KTF Co will jointly develop a smartphone using Google's Android software for launch next year, the Nikkei business daily reported on Wednesday.
DoCoMo is part of a global alliance to develop phones based on Google's Android platform. It owns 10% of KTF and the two companies have been jointly procuring handsets to cut costs, according to Reuters.
DoCoMo says the Google phone will be priced about 20% lower than existing smartphones, as it will save costs on software development using the Android software, the Nikkei business daily said. Google is offering the software free of charge.
Japan's second largest mobile carrier KDDI is also in the Open Handset Alliance that includes Intel Corp, eBay, LG, Motorola, Qualcomm and Samsung.
T-Mobile has already introduced an Android-based phone called G1, made by HTC, with a touch screen, keyboard and Wi-Fi connections.