T-Mobile is cutting prices to encourage mobile users to make more use of its data services.
The mobile operator plans to slash data prices in Europe between 50 and 70 per cent. This would result in its customers paying less than €10 (£6.85), to download or send 1MB of data.
T-Mobile said the contracts would start at a monthly fee of €4.95 (£3.40), which includes approximately 300 short emails and 1,000 t-zone page impressions.
The operator's chief executive, Rene Obermann, said lower prices would lead to increased use by its customers of data services, which it wants to account for about 20 per cent of its revenue.
To upgrade content it has signed sponsorship deals with companies including Disney, MSN (for its instant messaging service), Sony, Universal and MTV.
These deals will bring new content such as video clips of movies and sports events; music-related content such as polyphonic ringtones; and news snippets.
The company has also unveiled new handsets. The Nokia 3650, Samsung V200, and the Panasonic GD87 will be launched in April.
The handsets, all with inbuilt cameras, will include a 'T' button to connect users to the t-zone portal, similar to Vodafone's Live! handsets.
IDC analyst Paulo Pescatore said that T-Mobile's announcements could go a long way to helping the company claw back some of the ground it has lost to Vodafone's Live! service.
"It's an important new approach," he said. "T-Mobile had an ideal opportunity when it rebranded last year, but by introducing a flat rate they got it all wrong.
"Vodafone Live! took multimedia message service to a new level, and it has been difficult for competitors to come up with a rival product to get people to migrate to new services."
T-Mobile will also introduce the first BlackBerry offering for professional consumers and smaller firms in Germany, the UK and Austria, with other T-Mobile markets to follow.
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