NEC and Matsushita group to co-operate in mobile internet products

NEC and Matsushita are to work together in the mobile phone handset market.

The announcement follows media speculation about a deal aimed at expanding their global businesses.

Matsushita, the firm behind the Panasonic brand, and NEC are Japan's top domestic mobile phone makers. They say the alliance is open to other handset makers.

Under the agreement, they will standardise the design for 3G mobile-phone handsets and develop applications and software.

They will develop new terminals and co-operate in evaluation tests of new products.

The companies will also mutually supply handsets for services including 3G, 2.5G, and GSM GPRS-based systems.