Japan To Promote Cell Phones Overseas

August 19, 2008 9:41 a.m. EST

Tokyo, Japan (AHN) - Japan is planning to offer cell phones that have gained widespread domestic appeal to a larger audience. At the top of the list is a Sony-made "wallet phone" designed to breathe life into the cashless payment market.

The wallet phone uses wireless technology to communicate with stores and shops. The device is just the first to take advantage of new 3G technology spreading beyond the shores of Japan. Taiwan and South Korea are two likely countries that Japan may target, reports said Tuesday.

Although a leader in 3G technology, Japan's cell phone makers have been hindered by its slow development elsewhere with countries opting for either GSM or CDMA cell phones. However, the recent introduction of Apple's 3G iPhone may have signaled the widespread adoption of 3G technology.

However, despite the increasing common technology, Japan's "wallet phone" faces other potential obstacles, including cultural. While the relative lack of credit cards and the common use of vending machines makes such a technology popular in Japan, U.S. consumers familiar with credit cards may not see the need for such phones.