Softbank shares gain on iPhone deal, rivals fall

By Sachi Izumi

TOKYO (Reuters) - Shares of Softbank Corp (9984.T), Japan's No.3 mobile operator, jumped 4.6 percent on Thursday after it announced it would start selling Apple Inc's (AAPL.O) popular iPhone in Japan this year.

Share prices for bigger rivals NTT DoCoMo Inc (9437.T) and KDDI Corp (9433.T) fell, as investors picked the smart phone would attract music users and tech fans to Softbank, which has aggressively grabbed market share over the past year through quirky marketing and price cutting.

Expectations are high that Apple will unveil a new version of the iPhone next week, allowing faster Web browsing and data downloads on third-generation (3G) mobile networks.

That would make it more attractive in Japan, where mobile phones are heavily used for Web browsing and email.

DoCoMo, the industry leader, left open the possibility it might yet win a deal to bring the iPhone to its customers as well, although Apple's demand for a share of revenue is seen by analysts and company sources as a sticking point.

Shares in Softbank, which bought Vodafone's troubled Japan unit in 2006, spiked 6.7 percent soon after the market opened on Thursday before easing back to 1,951 yen, a gain of 85 yen.

DoCoMo shares fell 1.3 percent to 158,000 yen and No.2 operator KDDI fell 2.7 percent to 694,000 yen. Tokyo's benchmark Nikkei average .N225 dropped 0.7 percent.

DEAL DETAILS UNCLEAR