Music is a prime example of a service that has found success through hosting deals. Suncom Wireless in the US was the first operator in the world to bring Napster Mobile music to its subscribers. One year later, all three partners are still happy.

Susanne Lowry, executive director of Pricing, Planning and Product Management for Suncom Wireless, says: "Ericsson brings expertise to our mobile consumers as well as to mobile consumers worldwide. As a result, what Ericsson has learned about network operations throughout the world ensures that the services work 99 percent of the time - or even better. With this expertise and global learning, the user experience is always second to none."

Lowry says Ericsson's technical expertise in user interfaces in both PC and mobile environments is a plus. As the hosting partner, Ericsson must be sure services are adapted to the correct user, the correct telephone, and that all details - down to the correct billing mechanisms - are in place.

Napster President Brad Duea says Suncom's success broke ground for other deals in Europe and the US. "Carriers are embracing the brand and embracing our model," he says.

The music deal is attractive to other types of content providers as well. Ericsson and Turner Broadcasting System signed a hosting deal to bring content from the cable network to mobile users.

Bob Schukai, vice president, Wireless and Broadband Technology, Turner Broadcasting System, says: "We're great at making content and there are others that have fantastic expertise in terms of taking the next step - integrating with operators or helping us create an off-deck solution to deliver directly to the consumers.

"Ericsson knows how to make this content work - not only in the operator infrastructure but across a variety of network environments. And with more than 700 operators in the world, it is extremely important to work with a partner that can create a solution which can be scaled globally and managed effectively for all the various solutions that exist."

Schukai believes the hosting business model is right because all parties share the risks and rewards. "It's a true partnership where we all invest in the game and have things we need to do to make it work, but by sharing revenues, we think we can create a solution that is going to work for all of us."