BT, Microsoft and Virgin Mobile are expected to use the telecoms industry's annual convention, the 3GSM Congress, which takes place in Barcelona this week, to announce an alliance to launch a digital television service for mobile phones.

The service is among several developments expected to be unveiled at the Congress, as suppliers seek to capture the imagination of consumers for their often expensively acquired third-generation mobile offerings.

BT's involvement in the TV alliance should help to avoid the capacity problems that some analysts say will limit operators of 3G technology as they try to increase subscriber levels.

By the summer, customers of Virgin Mobile could receive at least five television channels direct to their handsets via a BT service, which the UK telecommunications operator has developed with Microsoft, according to reports.

It is thought that the network will run over the UK’s established digital audio broadcast network (DAB), which means an additional spectrum is not needed. It will be able to offer digital radio as well as television.

The involvement of BT is intended to overcome the problems faced by other phone operators who have so far streamed "capacity hungry" television services over their own 3G networks, the Financial Times reported.

However, 3G will still be an important talking point at 3GSM. It is five years since European mobile operators spent billions on licences for third-generation technology but so far, technology glitches and a lack of demand from consumers mean returns have been thin.

Vodafone already offers a mobile TV service in a partnership with BSkyB, the satellite broadcaster that is 37.2 per cent owned by News Corporation, the parent company of Times Online. The service costs users £5 a month.

Orange also offers a 3G television service for £10 a month.

That MTV, the music channel, and Endemol, the production company behind Big Brother, will be present in Barcelona this week, is being seen as a sign that they believe 3G phones will present opportunities.

Microsoft, the world's largest software developer, also announced an e-mail joint venture with Vodafone today. Windows Mobile Email will offer Vodafone’s corporate customers e-mails direct to their phone, which are synchronised with their office-based Microsoft Outlook or Excel packages.

The product, which will be available in the UK, France and Germany from next month, is expected to compete directly with the BlackBerry e-mail service, which was developed by the Canadian firm Research in Motion.

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