In a move that further changes the texture of mobile phone services, KDDI is planning to launch a music distribution service in late November 2004. Some 10,000 songs, provided by six companies, will be available for subscribers to download to their 3G handsets at a price of approximately 300 Yen (US$2.7; US$1=109.3 Yen) per track. Each handset can store as many as 28 songs, or even 80 if external memory is used.

 

So far, KDDI has inked deals with 20 record labels and will open this service to other content providers. To accommodate this 3G-enabled service, a total of four handsets will be rolled out, produced by makers such as Casio Computer, Toshiba, Sanyo, and Sanyo Electric.

 

KDDI's 3G technology features faster downloading speed than the WLAN (Wireless Local Access Network) technology adopted by competitors such as Vodafone and DoCoMo.

By creating a new service model, KDDI is looking to generate more revenues from new subscribers as well as content providers. If well received in the Japanese market, the service is likely to inspire operators in other regions to launch similar offerings.