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“The market for music over the mobile phone networks will really take off when the download speed to the handset is reduced to less than a minute. This will be possible over 3G and may also be accomplished over existing networks using what are called 2.5G technologies."
——Virgin source
Monday, February 2, 2004

VIRGIN TO TAKE MUSIC TO PHONES

New Mobile Phones to Double as Music Devices
Richard Branson’s Virgin Mobile phone company is getting ready to take Apple head on. Published reports say the group is going to launch a mobile phone music service later this year.

Branson is reportedly finalizing contracts with European labels to sell music on the Virgin Mobile network. Virgin will also deliver handsets from Nokia, Samsung and others that will double as digital music players. Virgin is expected to unveil the service in the U.K., then in Europe and the United States.

The service hadn’t been named yet, though it would probably have the word “Virgin” in it. The phones/digital music players are designed to compete with Apple’s iPods, and Virgin is expected to price them below iPods. The phones will operate on the new third-generation mobile phone services (3G), now being launched, with songs downloading directly into the phone/player. Apple sells iPods in Europe, but hasn’t secured European distribution rights with all of the large European labels.

An unnamed Virgin source told the press: “The market for music over the mobile phone networks will really take off when the download speed to the handset is reduced to less than a minute. This will be possible over 3G and may also be accomplished over existing networks using what are called 2.5G technologies."

 
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