The world's number three mobile phone maker, Siemens, has accepted help from a rival in a bid to speed the arrival of its next generation handsets, which allow users to surf the web, play video games and transmit data at high speeds.

When the first Siemens third-generation (3G) handsets go on sale later this year, they will carry the Siemens logo even though they will be made by Motorola, the world's number two manufacturer.

"This deal means Siemens can deliver its first 3G handsets this year, as announced, even if they're just Motorola phones carrying the Siemens logo," a Siemens spokesman said.

Siemens will then move on to make its own 3G handsets, though even these phones will contain technology developed by its rival.

Cost cutting

Siemens will develop the phones using Motorola's i.300 platform, a combination of microchips and software.

These handsets should go on sale in 2004, Siemens said.

The cost sharing move mirrors similar agreements between the Swedish mobile phone maker Ericsson and LG and Samsung of Korea.

A slump in the demand for mobile phones and a much weaker than expected demand for 3G handsets have forced the industry to slash costs.