TOKYO: NTT DoCoMo Inc., Japan's top mobile operator, is set to release two new second-generation handsets early next year, reversing its plan to entice customers to switch to third-generation phones, a Japanese financial daily reported on Sunday.

The Nihon Keizai Shimbun (Nikkei), quoting company sources, said the move is aimed at preventing DoCoMo's subscribers from switching to rival phone companies because of communication problems plaguing its FOMA 3G phones in some rural areas.

Second-generation service can ensure stable communications, and the new models are likely to cost under 20,000 yen ($172) each, less expensive than the cheapest FOMA 3G handsets, the Nikkei said.

It added that the new models would be developed and produced mainly by Panasonic Mobile Communications Co., an affiliate of Matsushita Electric Industrial Co., and NEC Corp.

At the end of October, Docomo had about 50 million customers, or about 56 percent market share, and 35 percent of the users were on its 3G service.

Competition among mobile phone operators is set to intensify ahead of a new government rule expected to take effect in fall 2006 that will allow customers to take their phone numbers with them when switching carriers.

Currently users have to change their numbers when changing operators.