Omnifone has said that it is launching what it describes as the world's first pre-licensed unlimited download mobile music phone.
According to the World Mobile Congress daily newspaper, the company will launch the device, called the MusicStation Max in the UK later this year in collaboration with LG.
The handset, which is expected to be available exclusively with Vodafone, could be regarded as a pre-emptive strike on Nokia's "Comes With Music" service which is due to launch in the summer.
Tech specs of the device according to the company's CEO will be HSDPA for fast downloads over the air.
The service, which has already signed the big four music labels - EMI, Universal, Sony BMG and Warner Music - would most likely run on a 12-18 month contract and see the music labels being paid every time the track is played rather than downloaded.
In an attempt to keep the labels happy, it is expected that users won't be able to share tracks from the phone with other devices. We will keep you posted.