Apple's newest gadget, the Apple iPhone is about to face some serious competition in Europe this spring. Twenty-three mobile phone operators with a collective subscriber base of nearly 690 million people are ready to jump on the bandwagon and introduce a new low priced flat rate service for its customers. MusicStation will give its subscribers the opportunity to have unlimited access to music downloads via their cellular phones for a flat fee of about $3.88 American dollars a week.
Along with the cheap fee, the companies will also offer the services on cheaper phones. This puts Apple in a predicament since their new phone runs about $499 and charges $.99 per download. The companies in Europe realize that they can help attract a larger amount of customers simply by outdoing the more popular businesses. While Apple might be hurting themselves, they're actually helping the other small companies by bringing the idea of Mobile music downloads to the public. Other companies have had the idea but just not the ability to advertise quite like Apple. In the end, this could really benefit the smaller companies by using larger companies resources.
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