MOBILE FAIR-Omnifone launches broadband music service

BARCELONA, Feb 16 - Omnifone, a British-based company which provides unlimited music services on mobile phones, is to roll out a version for broadband and is in advanced talks with pay-TV company BSkyB.

Omnifone, which provides unlimited music services for mobile carriers such as Vodafone and Telenor, said its MusicStation Next Generation service would provide broadband users with a legitimate alternative to illegal file sharing.

Internet Service Providers have come under pressure in recent years from governments to help find a solution to Internet piracy, which has eaten into the creative industries such as music.

British firm BSkyB announced last year that it would roll out an online music service after signing an agreement with the world's largest music company, Universal and it said then it was open to signing more deals with music companies.

Omnifone said its service would allow users to pay an additional fee as part of their monthly broadband subscription to receive music, and where the technology is available, music videos could also be streamed via the set top box to the television.

Omnifone Chief Executive Rob Lewis told Reuters the company had licensing agreements with the four major music labels and large independents to roll out the service across Europe.

He said the group was in advanced talks with BSkyB but declined to give any further details. A source familiar with the situation said Omnifone and BSkyB were close to a roll out. The service will be launched at the Mobile World Congress industry fair in Barcelona on Monday.