The government is set to allow Softbank Corp., eAccess Ltd. and IP Mobile Inc. to launch cell phone businesses possibly next year, becoming the first new entrants into the business in 12 years, sources said Tuesday.

The decision, to be finalized following approval from an advisory body to the communications minister Wednesday, is expected to lead to fierce competition between the newcomers and existing mobile phone providers, including NTT DoCoMo Inc. and KDDI Corp.

The three firms applied to the Ministry of Internal Affairs and Communications for licenses as cell phone operators and the ministry has decided to grant permission to all of them, the sources said.