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KDDI Corp. said Tuesday it will start selling mobile phones by fall 2005 that can function as electronic money.

KDDI said it will use Sony Corp.’s FeliCa IC card technology for the models, which are expected to eventually also function as electronic train fare cards and identification cards.

KDDI offers the au service. Its latest move is expected to further heighten market competition between the operators of mobile phone services.

NTT DoCoMo Inc., the nation’s biggest mobile operator, launched FeliCa-equipped handsets in July. Vodafone Group PLC’s Japan unit is currently speeding up the development of similar mobile phone models.

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