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Apple to Face New iPhone Rivals

In an attempt to steal iPhone's thunder, four major music labels will offer songs through a new mobile phone service.
Apple iPhone competition

While U.S. cell phone users anticipate the launch of Apple's iPhone on June 29, Europeans will be able to add iPhone-like features to their existing mobile phones before then.

The British firm Omnifone announced today it has signed deals with the four biggest music distributors and 30 mobile operators to offer an unlimited music-download service for a small weekly fee. Universal Music Group, EMI, Sony BMG, and Warner Music have all signed up to provide their music through the service. It will be compatible with most existing handsets from Nokia, Sony Ericsson, Motorola, and Samsung.

In exchange for a weekly fee of 2.99 euros, or about $4, users can choose from more than one million songs to download onto their phones for as long as their subscription continues, according to Reuters.

The service, called MusicStation, will launch first in Sweden and then roll out across the rest of Europe, Asia, and Africa. Manufacturers will soon begin selling phones that are preloaded with the service for a much smaller price tag than the $499 cost of the iPhone.

Industry analysts expect about 100 million MusicStation-enabled handsets to ship in the next year, which is about ten times the number of iPhones Apple is expected to ship, according to the Financial Times

Apple plans to bypass mobile operators and offer music downloads for the iPhone through its iTunes store.


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