Rumours that 3 UK was working on a Spotify-phone were correct: the operator has confirmed that next month it will start selling HTC's Hero handset and bundle a Spotify premium subscription into the tariff.

Customers will pay £99 up front, and then £35 a month for 24 months for a tariff including aSpotify Premium subscription covering both PC and mobile, 750 minutes voice calls, unlimited texts, data and Skype-to-Skype calls.

The Hero is the first Android handset to launch on 3, so will presumably come preloaded with Spotify's Android app.

However, 3 plans to go further in the future. "As a first step, we've built this service into an attractive, well-priced package with the HTC Hero," says director of products and services Charles Blanchard.

"Over time, our deal with Spotify will extend across a range of our products, including Mobile Broadband."