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Orange makes nine-country deal to boost music-phone use

By Peter Sayer, IDG News Service
July 24, 2007 10:25 AM ET
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Mobile-phone operator Orange is expecting the iPhone to raise awareness of its mobile-music services -- but it's working with Sony Ericsson to market its music portal in nine European countries.

Speculation is rife as to which mobile operators will clinch deals to distribute Apple's music-playing iPhone when it goes on sale in Europe in November -- rumors say almost all the big players are in with a chance -- but the hype Apple's marketing is giving to mobile multimedia services is boosting the mobile-music market, said Yves Maitre, senior vice president of devices at Orange, the mobile phone and Internet access division of France Télécom.

"Apple is helping the market to realize how important content is for customers," Maitre said Tuesday. "The fact that Steve Jobs decided to extend the iPod to the iPhone will help people realize how strong is the value proposition of the mobile phone."

Maitre would not say whether any of Orange's nine European networks are in talks with Apple about distributing the iPhone.

Orange has a partnership with one music-phone manufacturer: Sony Ericsson Mobile Communications, and the two are getting closer as they work together to develop and promote new services, Maitre said. Over the last year, Orange has sold more than 2 million of the company's Walkman-branded phones with access to its Orange Music Store -- more than all the other manufacturers' music phones put together, Maitre said. He expects to sell a million more by the end of the year.

The iPhone can play music and videos from Apple's iTunes store -- but only if they are downloaded to a PC and then copied to the phone over a USB connection. Sony Ericsson's Walkman phones, on the other hand, can download music directly from the Orange Music Store over a 3G mobile data connection.

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