OD2, the British-based download music service provider being acquired by U.S. counterpart Loudeye, is opening for business in Australia on July 5.

OD2, the British-based download music service provider being acquired by U.S. counterpart Loudeye, is opening for business in Australia on July 5.

The company has appointed former Warner Music International promotions executive Andy Chilcott as its Sydney-based consultant.

OD2 had started plans for expanding into Australia before the company agreed to the merger with Loudeye. Loudeye has said it plans to extend the OD2 brand globally.

"This is our first important news since the announced merger," Ed Averdieck, OD2's sales and marketing director, tells Billboard.biz. "We will then look at the Scandinavian market followed by Spain shortly after."

OD2 already has offices in the U.K., France, Germany, Italy and the Netherlands.

Meanwhile, Loudeye CEO Jeff Cavins also tells Billboard.biz that his company is to launch the "world's first digital download music service from a handset" in a deal with telecoms giant AT&T Wireless.

The service, which kicks off at the end of July, will enable AT&T cell phone subscribers to use their handsets to download and store music to a digital locker. The music, which will then be accessible via the subscriber's PC, will be paid for via the customer's telephone bill.

Cavins adds that future plans include offering retailers over-the-air delivery of songs for customers to play on their mobile phones.