Are the services going to be affordable for consumers? It's too early to tell.

Industry expert Susan Kevorkian

The market to provide video services for hand-held units is fiercely competitive with Microsoft also developing its own technology.

Phillip Schiller from Apple said the trio of companies are ideally placed to provide the new service.

He said: "Working with Ericsson and Sun is the perfect example of how using open standards can bring powerful technology to consumers and open new markets for businesses."

But some industry insiders are worried about how much the new system will cost the consumer.

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Susan Kevorkian of International Data Corporation said: "Are the services going to be affordable for consumers?

"Will the content be compelling enough so that consumers are willing to pay for it? It's too early to tell."

In Japan, the new third-generation of mobile phones has already been launched.

NTT's service is proving hugely popular, largely because handsets built to work with it have colour screens, stereo sound, can play audio and video clips and can be used to send and receive e-mail.

Cyriac Roeding, European chair of Wireless Advertising Association said the service will have vital importance in the future.

He said: "It's going to be more important than TV. No other medium is that close to the consumer and is available 18 hours per day."