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Capitalizing on users' desire to make their phone their own, the new service allows subscribers to choose the audio a caller hears while they wait for their call to be answered. And it can be personalized; a Top-40 song for the caller's best friend while grandma will hear a tune from the '50s. It can even be adapted for commercial purposes allowing companies (called parties) to "send" product information or their signature tune.

A major success in Asia, Ericsson anticipates 50 percent of mobile phone users will have ringback tones within a few years and by the end of 2005, the world's major operators will be offering this service.

The claim is supported by a recent Finnish survey that showed 40 percent of 15 to 49-year-olds with mobiles would subscribe to ringback, with the younger end of the market prepared to pay up to USD2.40 a month for the service.

Originating in South Korea in April 2002, the service in that country is generating USD 9 million every month with a penetration estimated at 40 per cent.

Ericsson's solution, the Personalized Greeting Service, has already been sold to operators in Europe (Iberia region) and the US.

Arvind Sharma, marketing manager at Ericsson Netherlands, says market research shows consumers want personalized attention and will change networks to get it. Ringback tones are an opportunity to provide that personal touch, spelling rewards for operators and the music industry alike.

"This is a service which is going to take off," Sharma says. "PGS is the first contact between you and the caller. It's like saying 'hello'. Because it is so personal it will take off at a very, very rapid rate. And it will be very big for operators."

Ringback tones are stored on the network. This gives operators complete control of the revenue stream, and protects the music industry, which will receive royalties through licensed agreements.

Sharma says the profitability of ringback should make it very attractive to operators. Ericsson can maintain its edge, however, through quality.

"Our offering concentrates on the strength of Ericsson – call control, we know our operators’ environment and we understand the network.Our solution is end-to-end, we will integrate the provisioning and playing of the music and the call control. "

Sharma says that before long, ringback tones will develop to include photograph and video capacity, with callers receiving not only a song but film clip or image of the called party while waiting.

"What we have now, really, is just the tip of the iceberg. Delivering personalized features will continue to grow."