Music services for mobile phones will generate almost $1.7bn in revenue in China next year, up from about $900m in 2005, researchers predict.

One of the fastest growing sectors in recent years has been Colour Ring Back Tone, in which callers hear music chosen by the called party instead of a ringing tone, according to analysts at local research firm Analysys International.

"We forecast that the wireless music industry in China will maintain stable growth in the following three years with a compound annual growth rate of 27 per cent," said Edward Yu, chief executive at Analysys.

"Wireless music subscribers will reach 114 million in 2008, accounting for 20 per cent of total mobile phone subscribers in China."

Streaming music delivery is expected to be a leading growth driver in the immediate future.