Spotify to launch mobile offering with 3, HTC

LONDON (Reuters) - Sweden's Spotify, the European digital music service, will be available to customers of British mobile operator 3 through a new HTC Hero phone, the three companies said on Monday.

Spotify, which recently announced a service on Apple's iPhone and Google phones, will be available on the 3 network from November, allowing users to access a huge range of music on their computers and mobile phones.

The smallest network in Britain, 3 said the deal was also significant because it was the first time it will sell the HTC Hero, which is based on Google's Android system.

Subscribers to the 3 network will be able to use the phone with unlimited access to the Spotify Premium service for an upfront fee of 99 pounds ($161) and 35 pounds a month, as part of a 24 month contract.

"Spotify Mobile is a fantastic digital service which gives consumers the ability to enjoy and share music in an affordable way," Charlotte Blanchard, Director of Products & Services at 3, said in a statement.

"As a first step we've built this service into an attractive, well-priced package with the HTC Hero. Over time our deal with Spotify will extend across a range of our products including Mobile Broadband."

Spotify has won plaudits from the music industry, which has been hammered by piracy, for offering a better and smoother alternative to illegal sites. It has more than 6 million users in Europe and over 5 million tracks available.

The deal is also a boost to 3, as analysts believe offering services such as music and games increases customer loyalty.

(Reporting by Kate Holton; Editing by Rupert Winchester)