BT: 'We won't compete with Apple'

'But we want to do a music download service...'

BT will not be launching an 'iPod killer' today, as widely reported in the media - but it is looking into the possibility of doing an iTunes-type download store for mobiles next year.

The telco has already launched a pilot of its mobile TV project, called BT Livetime, starting today. The company is now trialling the service with 1,000 Virgin Mobile customers, allowing them to watch a selection of satellite channels and listen to more than 50 DAB digital radio channels.

If all goes to plan with BT Livetime, the service may be extended to offer a music downloads functionality.

A BT spokeswoman said the telco might look at putting together a service for release in the first half of next year but "it's not designed to compete with the iPod".

"That service would be dependant on licensing agreements... digital rights management, storage, battery life," she said. "There's a lot of things that need to be ironed out."

"It's very future-looking," she added.

BT already has its finger in the digital music pie - late last year the telco announced it was to become a distributor, DRM hand-holder and music storage company with a one-stop shop music service.