Japanese mobile provider Willcom Inc will forge a tie-up with  to expand its low-cost phone business in Asia, a report said Sunday.

Willcom plans to provide know-how on so-called "packet communications" in which a firm determines users' fees based on the amount of data transmitted rather than a blanket charge, the Nikkei business daily said.

The companies also plan to provide roaming services before next year's Beijing Olympic Games, as demand from Japanese subscribers visiting the event is expected to be strong, it said.

In Japan, Willcom offers the personal handy system (PHS), a type of simple mobile telephone that costs less than more advanced technologies and is also popular in a number of other Asian nations.

China Network Communications, the second-largest fixed-line telecommunications carrier in the rapidly growing economy, will consider introducing PHS services with Internet access, the report said.

In China, PHS communications are so far limited to telephone and e-mail and cannot be used to connect to the Internet as in Japan.

Willcom is ready to sign a technology consulting agreement with the Chinese company and send engineers as needed, it said.

The number of PHS subscribers is about 30 million for China Network Communications and 60 million for China Telecom Corp, China's largest fixed-line operator, it added.