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O2 is working with Kodak to offer all its subscribers access to better online picture services.

From next month all O2 customers will be able to upload and share pictures via Kodak's online service. Punters can upload pictures by MMS or email from their phones or through the web via a computer. They can also order prints which can be posted to any address. The service covers any pictures taken with a phone or digital camera.

O2 subscribers using the existing photo service will have their pictures transferred to an album on the new service.

Improvements in handsets are credited with increasing demand for picture services.

James Parton, head of entertainment products at O2, said: "With the advent of affordable mega pixel camera phones, O2 feels the demand for online MMS printing and value added services is set to take off."

The service is open to any O2 customer with an MMS or Wap phone. New customers will get 10 free prints to get them started.

In separate news Kodak hit the top spot for digital camera sales in the US for the first time. In the fourth quarter of 2004, ended 31 December, Kodak outsold Sony. The fourth quarter accounts for the lion's share of sales thanks to Christmas. Figures from IDC reveal Sony sold 2.4m cameras compared to Sony's 1.6m. More info here. IDC expects prices for point-and-shoot digital cameras will continue to weaken in the coming year.®

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