Contrary to previous rumours, iTunes won't feature in Motorola's second-generation ROKR E2 phone, Reuters reports.

The original jointly-developed Apple/Motorola ROKR handset failed to wow consumers. However, the Motorola V3i with iTunes has been more succesful.

The second-generation ROKR favours Motorola's own iRadio service, which features hundreds of commercial-free radio stations and - eventually - access to music from major labels. Universal Music has already signed-up to license its catalogue to the service.

Motorola hopes that by making content held on the phone or streamed to it playable over Bluetooth, iRadio will become a central point for such entertainment on the move, in the car, or even in the home. iRadio will be a fee-based subscription service.

iRadio will be demonstrated at CES this week.

The news follows Motorola CEO Ed Zander's remark in September that it would "only be a matter of time" before Apple released an own-brand smart phone.