The slinky white clamshell can store 500 songs using internal memory and an additional 500 songs using a 2GB micro SD card. It also includes a new blue LED display that can be programmed to show time, ‘now playing’ information, caller ID and also displays the beginning of text messages as they arrive in the users inbox.

Sally Cowdry, O2’s marketing director, said: “O2 has a strong heritage in music through activity such as O2 Undiscovered, the O2 Wireless Festival and the forthcoming opening of The O2, so it made perfect sense for us to extend this music philosophy into the development of our own mobile music device.

The O2 Cocoon music player is compatible with a wide range of file formats, enabling users to simply drag and drop their music collections onto their device and start listening. It also features FM radio with RDS functionality (displayed on the LED screen) for endless listening options.

O2 launched the device at the O2 venue in London (formerly The Millennium Dome) and revealed that Cocoon’s music credentials also extend to a ‘location aware’ feature that makes its wallpaper transform when visiting the site.

Cocoon also comprises a 2 mega pixel camera, QVGA screen and embedded pictures and videos from acts including Paolo Nutini, Ash and The Doors. Other content includes EA Air Hockey and demo versions of The Sims 2 and TetrisMania.