The move is aimed at helping Bandai gain a U.S. foothold for its mobile WonderSwan hand-held game devices and wireless online services, which are increasingly key to its strategy.

Under the deal, Bandai will use Lucent Technologies' network infrastructure to distribute game software online and will get the U.S. company's help in marketing its game machines through U.S. mobile-telephone service providers, she said.

``The agreement with Lucent Technologies will reinforce our entertainment strategy for telecom devices in the United States,'' said Bandai President Takeo Takasu.

Bandai curently offers games, cartoons and other online content to users of NTT Docomo's popular ``i-mode'' cell-phone service, Japan's biggest Internet access platform.

Although Bandai's shares have rallied strongly in recent months as it pursues its mobile, online game and entertainment strategy, hitting an all-time high of 4,580 yen at the beginning of this month, analysts said its WonderSwan faces tough competition from Nintendo Co Ltd's popular GameBoy.

``WonderSwan is not as competitive as Nintendo's (GameBoy) and it's tapping the U.S. market is likely to have a very limited impact,'' said Takashi Oya, analyst at Deutsche Securities Ltd.

The market showed no immediate reaction to Tuesday's news, with Bandai's shares closing down a marginal 0.77 percent at 3,890.

[Updated 3/28/2000]